Used construction equipment inventory continued to hit the market in February as more rental and leased machinery was returned and dealers moved on from low-use models.
Late-model and low-use construction equipment making its way into the auction market led to increased inventories during February, Sandhills Global Equipment Lease and Finance Manager Jim Ryan told Equipment Finance News.
“It is a good time right now on the construction side to be able to hit that market,” he said. “We’re seeing some of that late-model, low-hour, quality used equipment start bringing in a little bit more of an uptick [in demand] than what we’ve seen in the past.”
Heavy-duty equipment
- Used inventory rose 5.1% year over year, but fell 1.5% month over month;
- Auction values fell 3.5% YoY, but increased 2.9% MoM; and
- Retail, or asking, values declined 3.8% YoY but rose 2.1% MoM.
Medium-duty equipment
- Used inventory rose 8% YoY, but fell 0.2% MoM;
- Auction values dropped 5.3% YoY, but rose 1.8% MoM;
- Asking values declined 5.9% YoY, but rose 0.1% MoM.
Used lifts
- Inventory increased 16.7% YoY and 1.9% MoM; Auction values fell 6.4% YoY and 1.1% MoM; and
- Asking values dropped 8.1% YoY and 1% MoM.
Much like the rest of the construction market, the lift market continued to see inventories rise in February, Ryan said.
“On the lift side and material handling side as a whole, we’re going to see that continue to grow,” he said. “There’s a lot of inventory, and that’s going to keep ramping up, so good time for buyers on that side of things.”
Construction market activity
Increased construction market activity also continues to open the market for lenders in the space, Brian Rosa, president of commercial finance at Mitsubishi HC Capital America, told EFN.
“We’re seeing more construction equipment come on to the market right now,” he said.
Mitsubishi HC Capital America also recently announced a strategic partnership with transportation and construction dealer Housby, as demand and inventory in the construction space remain elevated
As a result of increased inventories, the construction market has become more buyer-friendly, Sandhills’ Ryan said.
“There’s buyers that want to buy on the auction market, and so there is some sectors in that construction market that are bringing a premium right out of auction, or at least an uptick on what we’ve seen probably the last 12 months,” he said. “It is good to see a little shot in the arm on the construction side, but hopefully we’ll keep that up at least the next month or two, heading into the summer.”
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