Inventory Increases Accelerating Across Truck, Trailer Marketplaces

Inventory levels increased by double digits in May while values continue to fall. The day cab category led the way with the steepest value declines and the highest inventory level increase

Sandhills Global previously reported inventory increases occurring in April across Sandhills’ heavy-duty truck, semitrailer, agricultural equipment, and heavy construction machinery marketplaces. Those trends accelerated in May. Truck and trailer inventory levels, for example, increased by double digits in May while inventory levels in several construction and farm equipment categories increased between 4% and 9%. When rising inventory level trends occur, auction value decreases usually follow. In fact, Sandhills has observed auction value decreases in several categories ranging from 2% to 9% month over month from April to May.

“Sandhills’ market reports are showing clear trends that sellers would be wise to track,” says Sales Manager Mitch Helman. “Truck, trailer, and construction equipment sellers, in particular, should pay close attention to the market as inventory levels are up and values are heading lower.”

The key metric used in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. The Sandhills EVI data include equipment available in auction and retail markets as well as model year equipment actively in use.

Additional Market Report Takeaways
Sandhills market reports highlight the most significant changes in Sandhills’ used heavy-duty truck, semitrailer, farm machinery, and construction equipment markets. Key points from the current reports are listed below. Full reports are available upon request.

U.S. Used Heavy-Duty Trucks

• Inventory levels increased by double digits in May while values continue to fall. The day cab category led the way with the steepest value declines and the highest inventory level increase. Inventories rose 11.48% M/M following consecutive months of increases and were 33.24% higher year over year.
• Asking and auction values have decreased for a few months in a row. Asking values were down 2.69% M/M and 22.54% YOY in May, while auction values decreased 4.62% M/M and 27.67% YOY. Sandhills expects value trends will continue moving lower.

U.S. Used Semitrailers

• Inventory levels have increased for several consecutive months and were up 14.63% M/M and 41.49% YOY in May. The dry van trailer category showed the largest increases. Both the dry van and reefer semitrailer categories are following the inventory trends seen in used heavy-duty trucks. Sandhills expects inventory trends to continue rising.
• Like heavy-duty trucks, values for used semitrailers have experienced months of decreases. Asking values declined 4.58% M/M and 25.59% YOY in May, while auction values fell 6.09% M/M and 30.12% YOY. A continued softening in values is expected.

U.S. Used Medium-Duty Trucks

• Inventory levels have been increasing since the start of 2023. Inventories increased 9.39% M/M and 20.25% YOY in May.
• Auction and asking values decreased by 2% to 3% each month since January. In May, asking values increased 0.61% M/M, decreased 9.89% YOY, and are currently trending down. Following consecutive months of decreases, auction values were down 1.99% M/M and 15.46% YOY. Sandhills expects medium-duty truck values to remain lower than they were in 2022.

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