Rentals, summer surge boost used construction market

The used construction equipment market continued to build momentum in June as dealers benefited from strong construction activity and rental demand. 

Used heavy- and medium-duty inventory decreased year over year last month while auction values held firm, according to Sandhills Global’s July 7 report. A steady pipeline of construction projects, including large infrastructure and data center developments, have helped bring overall stability to the used market despite tariffs and other macroeconomic challenges. 

Seasonal factors are also working in the used construction market’s favor, Jim Ryan, equipment lease and finance manager at Sandhills Global, told Equipment Finance News. 

“We’re in the middle of summer — a lot of guys working on jobs right now,” he said. “So, that’s obviously going to keep things at a pretty steady level.” 

However, the aerial equipment sector is still wrestling with high inventory despite a YoY drop, driven in part by above average lease returns, Ryan said. 

Used heavy-duty equipment 

• Inventory fell 4.6% YoY, but rose 1% month over month; 
• Asking values dropped 3.5% YoY and 0.7% MoM; and 
• Auction values ticked up 0.1% YoY, but fell 0.6% MoM. 

Used medium-duty equipment 

• Inventory declined 5.7% YoY, but rose 1.8% MoM; 
• Asking values dropped 1% YoY, but increased 1.1% MoM; and 
• Auction values increased 1.9% YoY and 0.5% MoM. 

Used lifts 

• Inventory decreased 13.9% YoY, but jumped 4.5% MoM; 
• Asking values fell 5.1% YoY and 0.1% MoM; and 
• Auction values fell 3.3% YoY and 0.9% MoM. 

Dealers enhance rental management skills 

Construction equipment dealers continue to capitalize on strong rental demand as high interest rates and tariff uncertainty hamper purchases, Ryan said. But growing rental fleets also present risks, including a potential surge in rental returns. 

Dealers, however, have learned from mistakes related to over-aggressiveness in the rental space and are becoming better rental fleet operators, Ryan said. 

“I think they’ve gone through the gamut a little bit and know how to manage it a lot better,” he said. “I think it’s learning from the past a little bit and then finding different ways to utilize that equipment.” 

Finding the type of equipment that works best for a rental is also helping dealers avoid a large influx of returns, Terry Dolan, head of CNH Construction North America, told EFN. 

“They’re putting the right product in the fleet that can serve a broad group of customers, not a narrow segment of customers,” he said. “I think it’s making sure they’ve got a really good game plan, taking a different approach from what they do for sales.” 

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