While current demand is strong on the used market for non-Tier 4 equipment, as more jobs specify the use of Tier 4 equipment, the ratio is likely to change.
While current demand is strong on the used market for non-Tier 4 equipment, as more jobs specify the use of Tier 4 equipment, the ratio is likely to change.
While current demand is strong on the used market for non-Tier 4 equipment, as more jobs specify the use of Tier 4 equipment, the ratio is likely to change.
While current demand is strong on the used market for non-Tier 4 equipment, as more jobs specify the use of Tier 4 equipment, the ratio is likely to change.
While current demand is strong on the used market for non-Tier 4 equipment, as more jobs specify the use of Tier 4 equipment, the ratio is likely to change.

Demand Strong for non-Tier 4 Used Machines, IEDA Survey Says

Dec. 14, 2016
Demand for non-Tier 4 used equipment is increasing according to a recent survey of Independent Equipment Dealers Association members.

Demand for non-Tier 4 used equipment is increasing according to a recent survey of Independent Equipment Dealers Association members. Although for many equipment categories, used equipment availability is outpacing demand, the survey showed that demand for excavators, backhoe loaders, wheel loaders, dump trucks, dozers and compact equipment is increasing and IEDA members are seeing resale pricing increase by as much as 20 percent. Also, more than 50 percent of survey respondents said quality used equipment is getting harder to find.

IEDA members are equipment dealers around the world specializing in used construction and mining equipment sales. Since the EPA implemented new standards on equipment more than two decades ago, the IEDA’s staff and members have kept a close eye on how used equipment availability and pricing would be affected by each new standard.

“Our members buy and sell used equipment globally, which makes them well aware of market trends,” said Drew Van Brunt, IEDA president and owner of Global Tractor Co., Colleyville, Texas. “As a group, we make it a point to share trends we see in the market with each other, as well as with used equipment buyers and sellers. The current used equipment market is strong, but it will be affected by Tier 4 machines in the near future.”

According to the survey, most members are still unsure how Tier 4 machines will hold their value when they hit the used equipment market. Of the members surveyed, 37 percent believe Tier 4 machines will not retain their value as well as non-Tier 4 equipment, but many others believe Tier 4 machines will have better resale value because many projects demand the use of Tier 4 compliant equipment. If more construction projects demand the use of Tier 4 units, the residual value of non-Tier 4 machines will drop significantly.

Currently only a small number of Tier 4 machines are in the used equipment market because they are relatively new. IEDA members predict, however, that the market is four to eight years away from being dominated by Tier 4 machines. At that point, non-Tier 4 units will be harder to come by and pricing on Tier 4 machines will be steadier.