The South African used equipment market is showing signs of stabilisation after a period of uncertainty earlier this year, according to the latest data. While tariff concerns continue to linger globally, impacting the prices of new machinery, the used equipment sector is experiencing a relative calm.
Used Equipment Prices: A Story of Stability (For Now)
Data analysts at EquipmentWatch suggest that while year-over-year prices at resale and auction are down, month-to-month values have remained fairly consistent. This stability offers a glimmer of hope for businesses looking to invest in used equipment without facing the wild price swings seen earlier in the year.
"Everything is down, comparing the May numbers to April," says Brendan Gallagher, data analyst with EquipmentWatch. "But there's still a lot of volatility in all sales from fear of tariffs."
Tariffs: The Unseen Hand Shaping the Market
The spectre of tariffs continues to loom large, influencing the decisions of original equipment manufacturers (OEMs). Many OEMs are attempting to preemptively factor in potential tariff costs for imported equipment or components into the prices of new machines. This has largely shielded the used equipment market from the most dramatic impacts.
Gallagher notes that recent declines in used equipment values appear to be driven by age depreciation, suggesting a cooling down of tariff-related anxieties. He adds that at the start of the year, some equipment values spiked due to tariff fears, but the market now seems to be settling down.
Mid-Year Trends and 2025 Listings
Interestingly, EquipmentWatch data suggests that values at mid-year tend to increase slightly. This is attributed to the introduction of new listings for 2025 machines, which are often sold as used rather than new.
Auction Values: A Worrying Dip
Despite the overall stabilisation, auction values have experienced a significant 12% drop, which is considered unusual. Sam Pierce, a sales analyst at EquipmentWatch, points out that construction equipment typically exhibits consistent values, making this decline particularly noteworthy.
Key Takeaways for South African Businesses
- Used equipment prices are stabilising: While year-over-year prices are down, month-to-month values are relatively consistent.
- Tariff fears still present: Global tariff uncertainties continue to influence the market, particularly for new equipment.
- Monitor auction values: The recent dip in auction values warrants close attention.
- Consider mid-year opportunities: The introduction of new listings for 2025 machines may present buying opportunities.
This period of relative stability offers South African businesses a chance to strategically invest in used equipment. However, it's crucial to remain vigilant about potential disruptions caused by evolving tariff policies and other global economic factors. Keeping a close eye on market trends and consulting with industry experts will be key to navigating the complexities of the used equipment market in the months ahead.