/ Used Value vs Age #1
- Feb 15, 2009
- Northeastern Minnesota
- Kubota M7-171, M5-111, SVL75-2, RTV900XT & GR2120; CaseIH 1680 combine
I've read posts that pre-Tier4 tractors are valued higher than the newer equipment that is Tier 4 compliant. Today in one of my industry publications I got mid-year results of equipment based on age. They only broke down 3 segments and I selected dozer as most equivalent to tractors (the other groups were combines and heavy duty trucks. I can't bring in the charts but they show 5 - 10 year old equipment being a straight line - used price holding its own as a percentage of purchase price over the past 10 years. Newer used (0 - 5 years) has shot up in value by 21% over the past 2 years (16.3% improvement year to year showing most of the gain has been in the past year). So far as heavy duty trucks and construction equipment, new products withs stricter emissions limits do not appear to affect resale failure. Is it possible that high resale values are driven by low dealer inventory levels and emissions equipment is considered a non-factor to the prime users?
U.S. Used Heavy-Duty Construction Equipment
- The Sandhills Auction EVI for dozers increased to 16.3% YOY in May (up from 11.7% in April), while the category’s Asking EVI showed a 7.7% YOY climb (up from 5.7%).
- Asking values in the 0- to 5-year age group within the dozer market were up 23.1% YOY, with inventory levels within this age group 29% YOY lower than in May 2020. The 5- to 10-year age group managed a 1.7% gain, and the 10- to 25-year age group showed a rise of 6.4% YOY. As with the truck market, late-model equipment value improvements outpace the other age groups.