Used Equipment and Truck Markets Show Continued Inventory Decline — Sandhills Global, Inc. (Sandhills Publishing)

Event summary

Inventory levels for used high-horsepower tractors decreased 1.26% month-over-month and 16.71% year-over-year in June, trending down for 13 consecutive months.
Used heavy-duty truck inventory fell 6.81% month-over-month and 31.61% year-over-year, with sleeper trucks seeing the largest declines.
The Sandhills Equipment Value Index (EVI) spread for used sprayers dropped from 40% in May to 37% in June.
Used planter inventory levels increased 8.19% month-over-month but fell 21.01% year-over-year, with asking and auction values trending up.

The big picture

The ongoing inventory declines across used equipment and truck markets reflect broader trends of supply chain tightening and shifting demand dynamics. These trends are particularly notable in high-horsepower tractors and heavy-duty trucks, where inventory levels have been consistently decreasing for extended periods. The strategic implications include potential price increases due to scarcity and the need for dealers to adjust their acquisition and liquidation strategies accordingly.

What we're watching

Inventory Trends: Whether the continued decline in inventory levels across key used equipment and truck markets will lead to higher asking and auction values.
Market Dynamics: How the strong freight conditions and lower fuel prices will impact the commercial trucking market moving forward.
Equipment Valuation: The pace at which the Sandhills Equipment Value Index (EVI) spread will continue to narrow, affecting buyer and seller strategies.