As with most industries, companies are adjusting and evolving due to the change in business directly related to Covid-19. This along with national and global economic factors have destabilized the market.
Even publicly traded companies like United Rentals are in a position of improvisation in terms pricing and disposal of used heavy equipment. The market in general has yet to stabilize due to the unprecedented situation due to Covid-19.
Here is a quick recap of pricing from 2020 through present:
- In the 3rd and 4th quarters of 2020, companies were disposing of their machines at below normal market pricing in response to the severe slow down in business.
- December 2020 to January 2021, due to the aggressive price points, the demand continued to increase eventually leading to a shortage in equipment.
- February 2021, sellers quickly responded with a price increase to stabilize the demand.
- March 2021, manufacturers are late on supplying new equipment orders; therefore, stressing the already depleted used equipment supply.
Here is what we expect from present through the 2nd quarter of 2021:
- Inventories will be managed very carefully; therefore, popular segments like backhoes will be more difficult to source.
- Due to the inventory management, prices will likely increase from 10% to 15% year from 4th quarter 2021.
Once manufacturer orders are delivered, the inventories will stabilize, as will the price. Until then, expect to pay higher pricing.
But be cautious when buying, don’t be taken advantage of price gouging. You can always buy safely with Expert Heavy Equipment. We are the only reseller that subscribes to Rouse Data and is transparent with the true market pricing. Sell Smart and Buy Safe!