The used equipment market continues to face challenges across all equipment types.

In Stifel’s July Used Equipment Update, managing director Stanley Elliot says auction pricing trends for used equipment continued to face pressure in June given tough comps due to supply chain challenges and an overall tight equipment market last year. 

However, he adds, asking prices for used equipment are more mixed as some categories continue to see pricing growth and others are starting to follow auction pricing declines.

Elliot says, “In our view, asking prices are a better reflection of trends for most of the used equipment market.”

Auction prices are important to monitor though as they often precede trends for asking prices. Auction prices for ag equipment are still down year-over-year in all equipment types except for combines, he says. 

According to Stifel’s report, auction pricing for tractors over 300 horsepower are down 6.4% year-over-year. At this time a year ago, auction prices were up 10.1% year-over-year. In the 175-299 horsepower range, auction prices are down 7.6% year-over-year and the 100-174 horsepower prices are down 3.6%. 

Stifel says auction pricing for used equipment tends to be the most volatile and forwarded-looking portion of the used equipment market. Elliot says “In our view, trends in the used equipment market often proceed or glean additional visibility into trends on the new equipment side.”

According to Iron Solutions, the market hasn’t yet reached the bottom of this downturn and the timing of the market bottom will depend on the number of machines sent to auction over the next 12-18 months.

Watch the full version of this episode of On The Record