Auction Values on the Rise: What It Means for Compact Equipment Buyers

The used equipment market is shifting. After months of downward trends, Sandhills Global’s latest market report reveals a positive turn in auction values, signaling renewed confidence. Inventory levels are tightening, and auction prices for key compact equipment categories — such as backhoes and compact track loaders — are showing more stability. Let’s dive into the details, but first a quote from the press release:

“February was a big month for the construction market,” says AuctionTime Sales Manager Mitch Helman. “For example, we had some strong construction results among late-model, low-hours yellow iron units on AuctionTime. This bodes well for auction prices.”

Auction Values Strengthen for Compact Equipment

Sandhills Global tracks auction and retail values through its Equipment Value Index (EVI), providing critical insights for buyers and sellers. According to the February report, used medium-duty construction equipment — covering skid steers, backhoes loaders and mini excavators — exhibited some interesting trends:

• Inventory Levels: Down 0.15% month-over-month (M/M) but up 8% year-over-year (Y/Y). Mini excavators (up to 12,000 lbs) saw the biggest M/M decline (-2.39%), while both track and wheel skid steers posted the largest Y/Y inventory increase (+12.51%).
• Asking Values: Up slightly (+0.07% M/M), led by loader backhoes (+1.22%). However, Y/Y asking values dropped 5.85%, with compact track loaders experiencing the steepest decline (-7.76%).
• Auction Values: Trending sideways with a 1.76% M/M increase, though Y/Y auction values declined 5.31%. Loader backhoes led in M/M auction value gains (+4.28%), while compact track loaders saw the biggest Y/Y drop (-6.73%).

These numbers suggest that while auction values remain lower than last year, recent stability hints at potential price rebounds in the months ahead.

Key Market Takeaways for Buyers and Sellers

• Tighter Inventory Could Drive Prices Up: Several categories, such as mini excavators and skid steers, have seen inventory constraints. This could push auction prices higher as demand meets lower supply.
• Compact Track Loaders Offer Value: With the biggest Y/Y price drop, compact track loaders might be a smart buy for those looking to expand their fleet at a lower cost.
• Loader Backhoes Show Strength: As the only category with both M/M asking and auction value increases, loader backhoes appear to be holding their value better than other compact equipment.

Smart Strategies for Buying Used Equipment

If you’re in the market for used compact equipment, take these steps to make a sound investment:

1. Research Market Trends

Auction values fluctuate based on supply and demand. Reviewing reports like Sandhills’ EVI helps buyers understand price trends before making a purchase.

2. Inspect the Machine Thoroughly

A piece of equipment may look great in photos, but a hands-on inspection is crucial. Look for excessive wear, leaks and structural damage. Our article on buying used skid steers provides a detailed checklist for inspections.

3. Check Maintenance Records

A well-documented maintenance history can indicate whether a machine has been properly cared for. Regular servicing extends the lifespan of equipment and prevents costly repairs down the road.

4. Consider Total Cost of Ownership

Price isn’t the only factor — replacement parts, maintenance and fuel efficiency all play a role in the long-term value of used equipment. Our guide to equipment lifecycle costs breaks down what to expect.

5. Buy from a Reputable Seller

Working with trusted dealers or auction platforms ensures transparency and reduces the risk of hidden issues. Companies like Ritchie Bros., IronPlanet and MachineryTrader.com offer extensive inspection reports and guarantees on used equipment.

Final Thoughts: The Market Is Moving — Are You Ready?

The Sandhills report suggests that compact equipment values may be nearing a turning point. If you’ve been waiting for the right time to buy, now could be the moment to lock in a good deal before prices stabilize further. Stay ahead of the curve by following Compact Equipment for the latest updates on used machinery trends.

Keith Gribbins is publisher of Compact Equipment.