Used construction values soften despite market tailwinds

Used construction equipment values dipped in November despite falling inventory and a robust financing climate.  

Dealers are capitalizing on leasing and rental opportunities as they focus on offloading aging inventory before the end of 2025, which could be contributing to “some softening of values on the construction side,” Jim Ryan, equipment lease and finance manager at Sandhills Global, told Equipment Finance News.  

“A lot of consumers or contractors are looking to lease and have cash flow rather than buying or purchasing right now,” he said.  

Still, lenders are confidently financing used construction equipment as infrastructure projects, data center developments and other large commercial projects remain active, Ryan said.  

There are also ample financing opportunities to help dealers convert leases and rentals into sales, he said.  

However, lenders must avoid overvaluing older machines, which could throw market dynamics out of whack, Ryan said.  

“It’s a balancing act of making sure that we’re funding in the proper way and what the actual value is, not just funding it because it’s yellow iron.”

— Jim Ryan, equipment lease and finance manager, Sandhills Global

While the drop in values is notable, the used-construction market is performing well overall as dealers continued to chip away at inventory last month, according to Sandhills.  

Used heavy-duty equipment 

• Inventory declined 6.9% year over year and 1.9% month over month; 
• Asking values fell 2% YoY and 1.9% MoM; and 
• Auction values rose 1.1% YoY, but dipped 2.1% MoM. 

Used medium-duty equipment  

• Inventory dropped 6.3% YoY and 2.3% MoM;  
• Asking values fell 1.6% YoY and 0.8% MoM; and 
• Auction values dipped 0.02% YoY and 0.5% MoM. 

Consumer financing on horizon 

Manufacturers and dealers are recognizing growing demand for consumer financing, Jeffrey Ratliff, director of sales and marketing for OEM Takeuchi, previously told EFN. This includes customers who operate equipment as a hobby, side business or for personal uses such as property renovation.  

“I think that we have to continue to find solutions for them,” he said.  

More consumer financing options may be on the horizon in 2026 as lenders respond to these demands, potentially boosting used-equipment sales, Sandhills’ Ryan said.  

“There’s some opportunity there for sure,” he said. “There’s been some companies looking to dabble in that a little bit more next year on the consumer side. … I think it’d be a smart move.” 

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