2025's Used Heavy Equipment Market: What You Should Know
Heavy Equipment Market Trends: The 5 Factors to Consider in 2025
Knowledge is power! Keeping a finger on the pulse of the used heavy equipment market is a great way to stay informed before your next sale or purchase. Here’s everything you need to know about the market as we move through 2025, and the unexpected factors you may want to consider. Get information and insight from Marcus Herzog, Global Valuations Manager at Fused, in this easy-to-understand guide to 2025!
2024: Supply and Demand Set the Stage
Last year’s market gives us a good idea of what we can expect this year. In general, the used heavy equipment market is sensitive to supply and demand; this means that oversupply leads to lower prices, while limited supply leads to higher prices. 2024 was a year of oversupply, which meant used equipment sale values started to decline.
Despite this, towards the end of the year we began to see equipment prices recover. Thanks to seasonal purchases, softening interest rates, and a generally positive economic outlook, we’ve started this year off on a pretty good foot.
What’s Next?
As used equipment valuations continue to recover, there are still several variables to consider in 2025.
1. Tariffs and Trade Policies
As tariffs and trade policies change, so does the cost of importing and exporting heavy equipment. Higher tariffs can increase the cost of new equipment, therefore making used equipment more appealing. However, keep in mind that new trade policies may affect your ability to access certain equipment and parts, incorporating new supply and demand struggles. Until implemented, it is yet to be seen exactly how these changes will impact the used equipment market.
2. Regulatory Changes
Proposed regulations, like updated carbon pricing and stricter emissions standards, could affect used equipment valuations. For example, Canada is likely to see an updated carbon pricing policy in 2025. This could make it more complicated to operate older equipment that isn’t up to date with new standards, potentially lowering used equipment valuations in some parts of the world.
3. Commodity and Raw Material Prices
New equipment costs rise with the prices of commodities and raw materials used in their manufacturing process, making used equipment prices even cheaper and more attractive in comparison. As policies change and potentially affect these material prices, increased demand and valuations for used equipment is a possibility in 2025.
4. Inflation and Interest Rates
High levels of inflation make it more expensive to buy in general, while high interest rates drive up financing costs for new and used equipment. Keep an eye on rising interest rates and inflation throughout the year to ensure you’re able to purchase or sell used equipment within your optimal price range.
5. Inventory Levels
We previously touched on how sensitive the used equipment market is to supply and demand. We have yet to see how much inventory there will be throughout 2025, however low supply is a possibility considering other factors like changing trade policies. While effects are yet to be seen, this could ultimately result in higher used equipment valuations.
Conclusion
We’re starting off the year with a positive outlook from 2024, but it’s important to keep these factors in mind as you navigate the used equipment market in 2025.
Looking to buy or sell and need help navigating the used equipment market? Reach out to our team of experts for more information!