United States, September 11, 2025
News Summary
Used construction equipment is steadily disappearing from dealer lots as original equipment manufacturers ramp up promotional financing, extended warranties and technology packages that make new machines more attractive. A dealer survey across 150 locations found 80% met used inventory targets in Q2 and 90% reported steady or improving demand, yet aggressive interest-rate buydowns and 0% financing narrow monthly-payment differences and pull purchases toward new units. Dealers are purging late-model units, shifting machines into rental fleets, or timing buys for tax benefits. Market balance may return if promotions ease or used pricing adjusts.
Used construction equipment is vanishing from dealer lots as OEM incentives push buyers toward new machines
Used construction equipment is steadily disappearing from dealer lots as original equipment manufacturers increase incentives for new machines. A recent survey by a heavy-equipment research firm that sampled dealers across 150 locations shows the pull toward new equipment is strong enough to make some used models hard to sell.
Key findings and market snapshot
The survey found that 80% of dealers met used inventory targets in the second quarter, and 90% reported used-equipment demand was steady or improving during that period. Stable used prices and resilience to tariff uncertainty helped results in the quarter. Dealers also continued to benefit from large commercial developments and robust homebuilding in parts of the country.
Why used equipment is losing ground
Manufacturers are offering aggressive promotional programs that shift buyer preference toward new machines. The most common incentives are interest rate buydowns, extended warranties, and technology upgrades. Among those, interest rate buydowns are the most widely used tool and are cutting into used sales by making monthly payments on new machines look similar to — or cheaper than — payments for late-model used machines when financing is compared.
Promotional financing at very low or even 0% interest can reduce the monthly payment gap between a new machine and a used machine that carries a higher used-rate interest. Those programs, together with other manufacturer offers, have been described by dealers as creating a market environment that favors new equipment.
Dealer responses and inventory moves
Dealers are adapting in several ways. Some are choosing to purge late-model machines that sit near the price point of a new unit — for example, dealers are moving older late-model equipment from 2022 before they try to sell late 2023 or early 2024 models because the monthly payment difference is too small. Others are shifting more late-model inventory into rental fleets, renting units for six to 12 months to add hours and revenue before selling them as higher-hour used assets.
One dealer reported sales staff prefer to sell new units when price-for-price comparisons and finance programs make new machines more attractive. That has led some operations to select which used models to hold and which to move out quickly.
Expectations for the next quarter
Dealers’ expectations for the third quarter reflect the market tug-of-war. The research report shows 40% of dealers expect used inventory levels to increase in Q3, while another 40% expect inventory levels to remain unchanged. Part of the planned inventory increase is tied to dealers aiming to take advantage of year-end tax incentives, including 100% bonus depreciation and other potential tax breaks that make stocking used machines before the close of the tax year more attractive.
Broader market context
Despite the pressure from OEM promotions, several fundamentals support the used market. Pricing stability in Q2 and ongoing demand driven by large projects and certain homebuilding markets kept activity healthy. Tariff uncertainty, while a background concern, did not derail the quarter’s results.
What buyers and fleet managers should watch
Buyers weighing new versus used machines should look beyond sticker price and compare monthly payments with financing offers, warranty coverage, and technology packages. For dealers, decisions on whether to sell used units now, move them into rentals, or hold for tax-driven opportunities will be shaped by how aggressive OEM offers remain and by local demand conditions.
What this means for the market
The combination of aggressive manufacturer incentives and shifting dealer strategies creates a changing landscape. In the short term, some late-model used machines will be removed from lots or rerouted into rentals. Over the medium term, the market may rebalance if promotional programs ease or if used pricing shifts enough to restore a clearer cost advantage for secondhand equipment.
FAQ
Why is used construction equipment disappearing from dealer lots?
Aggressive promotional programs from original equipment manufacturers are making new machines more affordable on a monthly payment basis. Interest rate buydowns, extended warranties, and technology upgrades are reducing the price gap between new and late-model used machines, prompting buyers to choose new over used.
Are demand and prices for used equipment still healthy?
Yes. A recent dealer survey showed most dealers met used inventory targets in Q2 and 90% said demand was steady or improving. Stable prices helped maintain positive results in the quarter.
What strategies are dealers using to manage late-model used machines?
Dealers are purging certain late-model units that compete with new offers, moving some machines into rental fleets to build hours and revenue, and planning inventory buys to take advantage of tax incentives such as 100% bonus depreciation before year-end.
How might promotional financing affect buyer decisions?
Low or zero-percent financing on new machines can reduce monthly payments to levels close to those for used machines financed at higher rates. This makes the total-cost comparison more favorable for new equipment when warranty and technology upgrades are included.
Key features at a glance
| Feature | Detail |
|---|---|
| Survey coverage | Dealers representing 150 locations |
| Q2 performance | 80% met used inventory targets; 90% reported steady or improving demand |
| Main OEM incentives | Interest rate buydowns, extended warranties, technology upgrades |
| Dealer strategies | Purge select late-model units, convert to rental fleets, buy used ahead of tax breaks |
| Q3 expectations | 40% expect used inventory to increase; 40% expect it to stay the same |
| Tax-driven influence | Plans to capitalize on 100% bonus depreciation and year-end tax breaks |
Deeper Dive: News & Info About This Topic
Additional Resources
- Equipment Finance News: 80% of construction dealers hit used-inventory goals
- Wikipedia: Construction equipment
- Equipment Finance News: Dealers turning page on troubled used-equipment market
- Google Search: used construction equipment market
- Equipment Finance News: Dealers refresh rental fleets as OEMs push new equipment
- Google Scholar: equipment rental fleet management
- FoxYNC: Get ready to dump the junk in Morrisville
- Encyclopedia Britannica: waste management
- LevittownNow: Special blanket used to stop burning Tesla
- Google News: EV battery fire suppression blanket
Author: Construction FL News
FLORIDA STAFF WRITER The FLORIDA STAFF WRITER represents the experienced team at constructionflnews.com, your go-to source for actionable local news and information in Florida and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Florida Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of Florida and the Florida Home Builders Association, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Shutts & Bowen LLP. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
