Sandhills Global Market Data Shows 30% YOY Drop in Used Sleeper Truck Inventory

Sellers could see more demand and the potential for bigger profits on their used inventory

A new Sandhills Global market data report indicates the year-over-year average value of used equipment in the heavy-duty truck market, as well as key segments in ag market, are on the rise. The YOY values are notable as equipment buyers and sellers begin to prepare for 2021 and looming year-end sales. If these trends continue, equipment sellers could see more demand and the potential for bigger profits on their used inventory.

Equipment sellers could see more demand and the potential for bigger profits on their used inventory.

Chart Takeaways
Dropping used inventory levels in key sectors of the truck and agriculture markets have positioned specific equipment categories for bigger returns, with average prices on the upswing. The used inventory decline is partially a reflection of reduced production that began in 2015 for many segments, such as 40-plus-horsepower tractors in the ag market, and has continued at declining or flat new production levels. By comparison, used inventory in the construction market echoes increased new production in recent years.

• Used sleeper truck inventory on TruckPaper.com dropped nearly 30% YOY for the month of September, continuing a steep decline for used heavy-duty trucks and contributing to 4 percentage-point increase in YOY price.
• Trends in YOY used truck inventory have begun to look similar to the level of declines last seen in Q3 2018.
• Within the 1- to 3-year age group for tractors rated at 175-plus horsepower, Sandhills continues to see a gradual price increase driven primarily by the significant decline in inventory. September used tractor values in this horsepower category increased 4% YOY.
• In the construction market, there is a notable increase in excavator inventory in the 0- to 5-year age group when compared to historic trends. Although current values have rebounded from Q2, the excess inventory continues to pull down the average price for excavators in the 0- to 5-year age group.

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