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Daily Archives: September 22, 2021

eBay “Doubles Down” on Used Equipment Market with Bidadoo Investment

Saying it is “doubling down” on providing tailored solutions for customer segments, eBay has taken a minority stake in online auction company bidadoo. While the two companies have had an 18-year partnership, the investment takes things to the next level, says Howard Hawk, bidadoo president.

For eBay, the deal was prompted by the rapid transition of the heavy equipment industry from in-person to online transactions experienced during the pandemic. “By harnessing the capabilities and experience of bidadoo  the largest industrial seller on the platform eBay can offer end-to-end transactions that are more transparent and efficient, while boosting buyer confidence in their purchase without having to see an item in person,” says Chris Prill, vice president of eBay Motors, North America.

The companies estimate the value of the highly fragmented used equipment market at $50 to $60 billion.

“EBay and bidadoo are primed to meet this demand head on by connecting global buyers with equipment sellers through a seamless, industry-leading experience,” Prill says. “Professionals can not only discover high-quality equipment, parts and attachments, but also enjoy additional protections including machine evaluations and demos, eBay’s Business Equipment Purchase Protection (BEPP), and a 100% satisfaction guarantee.”

HawkbidadooFor bidadoo the deal “will add new value to both buyers and sellers,” Hawk says in comments to Equipment World. The two companies will remain separate although the brands will be brought closer together to show that “while it’s still bidadoo, we will have the the full power of the eBay platform, and bring more of their tools into the marketplace,” he says.

First up will be a “significantly expanded” field sales and solutions team along with marketing activities across all eBay channels, Hawk says. Another focus will be rolling out technologies and solutions that take advantage of this multi channel retail, wholesale and auction approach. 

Buyers will see a lot more inventory plus added retail options, Hawk says. There will be more items offered on a “buy it now” basis. Sellers also will have more remarketing options. The inventory boost will come from the variety of used equipment channels, including dealers, rental companies, governments and utilities along with companies in the transportation and agricultural markets. 

Bidadoo will also be rolling out additional buyer assurance programs “to further enhance buyer trust and give them the transparency they need to make intelligent buying decisions,” Hawk says.

During Q2,  bidadoo says it saw a 65% increase in new seller accounts those using its platform for the first time over Q2 2020. And today’s hot used equipment market prompted a 15% to 30% increase in sales pricing and demand in several asset categories. It also notes it’s selling bigger equipment: its average sales price per item rose more than 75% in the quarter compared to Q2 2020. 

“We track ourselves against a live auction model,” Hawk says. Bidadoo says it gets around 1,700 views per sale item, which it says is about 17 times more views per item versus a live auction platform that has simulcast online bidding. “The activity level is pretty astounding,” Hawk says. Bidadoo now has more than 63% mobile participation.

Currently, 70% of bidadoo’s inventory is construction equipment, Hawk says. The company also a presence in used truck and trailers. “But we will be investing in transportation, agriculture and equipment that comes through banks and lending institutions,” he says. 

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Used Truck Prices Skyrocket, But Will the Bubble Burst?

The Class 8 auction market heats up more each month, and retail selling prices continue to crush records as the industry stands at the confluence of a strong freight market, an inadequate supply of low- to average-mileage used trucks and a shortage of drivers.

J.D. Power Senior Analyst and Product Manager of Commercial Vehicles Chris Visser, a guest during FTR’s ongoing virtual State of Equipment series, says “superheated rates” are keeping truck buyers energized. FTR forecasts rate increases to gradually relax and reach year-over-year parity starting in early 2022, while volume continues to grow into 2023. “In this market, we’re never going to have enough drivers to move the amount of freight that we have,” he says. “We’re really in a severe shortage of new trucks.”

The four-year truck trade cycle has been alive and well, Visser said, adding that 489,100 orders for trucks have been placed in the last 12 months with a bump in August due to the opening of model year 2023 build slots. However, OEMs have tamped down some of the enthusiasm as uncertainty surrounds the number of trucks they can build due to shortages of various components and workforce challenges. 

Based on the number of trucks bought in model years prior, the supply of trades was naturally set to increase by roughly 20% in 2022, but Visser says the new-truck shortage will delay that increase.

Model years 2015 and 2016 are the most common trucks on the auction market, Visser notes, adding that if you can find three- or four-year-old trucks at auction, be ready to pay upwards of $100,000 for them.

“2019s are three years old, and those trucks are selling for well over $100,000 on the retail market,” Visser says, “and they’re being snapped up.”

Year-over-year auction pricing has increased more quickly and steeply than retail, as a lack of inventory is currently limiting sales.

“Dealers would sell more trucks if they had more trucks to sell,” Visser says. 

An increasing number of fleets are bypassing dealers and auctions to dispose of late-model trucks because they’re so easy to sell. Visser adds the overall truck shortage has also pushed more fleets to the auction market as buyers, pitting them head-to-head against dealers and wholesalers on the auction floor and further driving up prices. 

“When there’s no bargain price equipment that’s unwanted, (trucking) business is tough,” Visser says. “It’s getting more and more difficult for an owner-operator to purchase a used truck.”

Trucks 4 to 6 years old brought 86.5% more money at auction from January to July this year compared to the same period in 2020. Monthly appreciation has averaged roughly 4.8% in 2021.

Retail pricing is now at a post-Great Recession high with monthly appreciation of 3- to 5-year-old trucks averaging 1.8% per month across-the-board and increasing to 5.3% for trucks with fewer than 500,000 miles.

Visser says J.D. Power’s 48-month residual forecasts will likely be adjusted upward due to lower than predicted build rate of model year 2022 and 2023 trucks. While there’s no change in sight for current conditions, he said pricing will eventually pull back. 

The used truck market will turn fairly quickly when new truck production returns to normal, parts shortages end and fleets start remarketing more trades through auctions, leaving the number of trucks on the ground and negative equity as concerns when supply returns to trend, Visser said. 

“I won’t say the bubble bursts,” he says, “but eventually pricing will return closer to trend as the availability of new trucks increases and economic factors work themselves out of the economy.” 

Fuel-saving equipment

Fuel-friendly specs 6x2s, wide-base wheels and aerodynamic equipment are hitting the used market in higher numbers, “and they do take a fairly substantial hit on the used side,” Visser says of used truck buyers typically seeking a dual rear-wheel, 6X4 configuration. 

Wheel covers and chassis fairings, Visser says, also “tend to be one more piece of equipment that break and tend to wear out.”

A full set of aluminum wheels, Visser says, is adding upwards of $2,000 over steel. 

The market is also warming up to automated manual transmissions (AMTs). Visser said most of the used truck market currently “wants” an AMT, adding that AMTs are now commanding a $2,000 to $3,000 price premium compared to a comparable manual transmission.

Historically, AMTs have been a pricing deduct compared to manuals, but that dynamic only exists currently with buyers seeking an 18-speed manual. 

“Value enhancers are engine size and horsepower,” Visser says, adding that buyers still put a premium on 500-plus-horsepower engines. Other possible equipment on used models include:

Electronic Driver Assist Systems The 2018 model was the first year of widespread installation for Advanced Driver Assistance Systems, and while fleets want this technology on new trucks for safety and insurance savings, individual used buyers often need to be educated on how they work and their benefits. 

Gliders Gliders are commanding roughly a 20% premium compared to a factory original unit, applies-to-apples, Visser says, because they are in very limited supply and almost none are entering the market. “That will continue to be the case for the foreseeable future,” he says. 

Completed glider builds – Glider builds equipped with refurbished engines and transmissions in new truck bodies and chassis became popular among owner-operators and small fleets as an alternative to buying new in the wake of tightening federal emissions regulations that took effect in 2008 and 2011. 

But the U.S. Environmental Protection Agency crippled the glider industry with its Phase II emission regulations, sending independent shops that produced most of the kits retreating to repair/replacement when OEMs stopped selling chassis for gliders or selling gliders themselves. 

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Industry Roundup: H & E relocates Little Rock branch

H & E Equipment Services has relocated its Little Rock branch, renovating a 6,450-square foot facility in Mabelvale, Arkansas. The facility includes a fully fenced yard, offices, parts warehouse and a repair shop with six service bays. 

“To best serve customer demand, we recently sold our Komatsu dealership rights in Arkansas along with our former Little Rock property to focus specifically on rentals, the largest growth area of our business,” says Trent Taylor, branch manager. “Our plan is to aggressively grow our rental fleet and expand our product offering of quality equipment with competitive rates throughout the central Arkansas area.”

The Little Rock branch specializes in the rental of aerial lifts, telescopic forklifts, earthmoving machinery, compaction equipment, generators, compressors and more.

Hyundai adds Delta Power Equipment

Left to Right: Cameron Currie, general sales manager and Brad Blain, construction sales manager, Delta Power Equipment.Hyundai Construction Equipment Americas

Hyundai Construction Equipment Americas has added Delta Power Equipment to its North American dealer network. Delta serves agricultural, construction and power sports markets in multiple locations across Ontario. Hyundai equipment will be available at the company’s Essex, Forest, Mitchell, Sparta, Waterford and Winchester locations.

ProSource Machinery named Hydrema dealer

ProSource Machinery will now offer Hydrema articulated dump trucks. The company will represent Hydrema throughout Colorado from its Platteville location. 

Chadwick-BaRoss buys J. F. McDermott

Chadwick-BaRoss has completed acquisition of waste-and waste-water-industries supplier J. F. McDermott. Chadwick-BaRoss now has nine locations in New England.


Yanmar announces new president, executives

JohnsonYanmarYanmar Compact Equipment and ASV Holdings brands have named Tate Johnson president, Lee Thole director of aftermarket and David Gannon as director of channel development. 

Johnson joined the company as commercial director last year, overseeing sales, national accounts, channel development and marketing. As president, he will further develop growth initiatives for the company as the two brands progress in a joint vision of Yanmar Compact Equipment North America. 

“As we continue to grow, we will seek to provide even more resources and support to our dealers and in turn, the end user customers,” says Johnson. “The addition of Lee and David is the logical next step.”

Thole’s responsibilities as aftermarket director will include strengthening post-sales support functions and aftermarket strategy. Gannon will work closely with the company’s dealer network, working to recruit new dealers and assist current dealers. 

Ritchie reaches $500 million mark with Marketplace-E

Ritchie Bros. says its Marketplace-E price-controlled option has seen sales of more than $500 million in the past 12 months.

The option includes “Buy Now” and “Make Offer” features. Ritchie says it’s driving buyers to the site through real-time demand data. As a result, items “are selling approximately 40% faster on Marketplace-E,” says Kari Taylor, chief revenue officer. Ritchie says more than 2,500 customers used the service to sell items, including Sunbelt Rentals.

“We now have access to an expanded footprint and tools to help us better manage how, when, where, and what price to sell our assets—because we have the flexibility of choosing the proper Richie Bros channels, using a Ritchie Bros. location, or remarketing directly by Sunbelt we are improving the efficiency of our disposition process as well as recovery on equipment sold,” says James Dennis, vice president of fleet management at Sunbelt.

Sheppard joins Machinery Advisors

Luke Sheppard of Sheppard & Company Consulting has joined the Machinery Advisors Consortium. George Russell, MAC co-founder, says Sheppard “will complement the other MAC Advisors with his experience in construction and forestry equipment, his leadership insights revealed in his first book, and his demonstrated results driving success in the key parts and service departments of a large CE dealership.”

Equipment confidence index drops in September

The Equipment Leasing & Finance Foundation’s monthly confidence index dropped from 66.6 in August to 60.5 in September. The index is a qualitative assessment of prevailing business conditions and future expectations as reported by key executives in the equipment finance sector. 

When asked to assess their business conditions over the next four months, 17.9% of executives responding said they believe business conditions will improve over the next four months, down from 35.7% in August. Another 71.4% believe business conditions will remain the same over the next four months, up from 64.3% the previous month; 10.7% believe business conditions will worsen, up from none in August.

Executive respondents cited several factors leading to increased uncertainty, including the Delta Covid-19 variant and the inability to fulfill demand because of labor shortages and supply chain shortages.

Woods Equipment names dealer channel director

Woods Equipment has named Darwin “Dag” Parsell to its newly created director of dealer sales channel position. Parsell, previously regional sales manager, will manage sales activities within the North American Woods Ag and Turf dealer organization. 

Magni opens Houston-area office
Magni America 545x271

Magni Group says it will use its new facility in Pasadena, Texas, as its main logistics hub for the distribution of spare parts and machines. The facility is in addition to the company’s current U.S. headquarters in New Jersey, which also serves as a parts and machine distribution facility. Magni has also announced plans to start work on a new headquarters in the first quarter of 2022. 

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