OEM incentives drive buyers from used construction equipment to new machines

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 aggressive new-equipment incentives reshape the market

What happened: Used construction equipment inventory is declining at dealer lots as manufacturers push increasingly aggressive incentives on new machines. A recent survey by a heavy-equipment research firm that polled dealers across 150 locations found that strong dealer performance in the second quarter coincided with a growing trend: promotional programs for new machines are making some used units harder to sell.

Top-line survey findings

• 80% of surveyed construction dealers met used-inventory targets in Q2.
• 90% of dealers reported demand for used equipment was steady or improving in Q2.
• Stable used-equipment prices and resilience to tariff uncertainty helped support those positive Q2 results.

Why used gear is under pressure

Manufacturers are offering three main kinds of incentives that are changing buyer choices: interest rate buydowns, extended warranties, and technology upgrade packages. Among these, promotional interest-rate reductions are the most impactful. When a new machine is offered at very low or zero interest, the monthly payment can come close to — or even match — the payment on a used machine financed at a higher rate, reducing the price advantage that used units once enjoyed. Dealers say this dynamic is eroding demand for certain late-model used machines.

Dealer responses and strategies

Dealers and sales teams are adjusting in several ways:

• Some dealers are choosing to purge older late-model used units, particularly those whose monthly payment profiles sit near new-machine offers.
• Other dealers plan to shift late-model used machines into rental fleets, adding hours while generating revenue, then reselling them later as higher-hour rental units.
• Some will intentionally build used inventory later in the year to take advantage of tax incentives such as 100% bonus depreciation and other year-end tax breaks.

Expectations for the next quarter

Dealers surveyed provided mixed short-term forecasts: 40% expect used inventory to increase in Q3, while another 40% expect levels to remain the same. The remaining dealers expect declines. The anticipated increase for some dealers is linked to tax planning and an intent to buy used inventory to capture depreciation benefits.

Market context

Construction dealers continue to benefit from large commercial developments and strong regional homebuilding, which supports demand for both new and used equipment. Still, promotional programs are creating a competitive cross-current, with sales staff often preferring to sell new machines when price-for-price deals and finance incentives make new purchases more attractive to buyers.

Local community projects: playground reopening and Green Day recycling event

Playground reopening in Morrisville

In a separate community story, a local playground reopened following several years of planning and fundraising. A 5-year-old child helped with the ribbon cutting and immediately ran to play. The new site includes distinct play areas for children aged 2 to 5 and 5 to 12, and features monkey bars, slides, a jungle gym, and swings sized for infants, toddlers, and older kids.

The replacement project began gaining traction in 2018 after the former equipment became worn and posed safety and insurance concerns. Fundraising and grant applications followed, with a successful grant award of $300,000 through a county community development block grant in 2024 and a $50,000 corporate donation that, together with material gifts such as mulch, helped make the project possible. Construction started in March and faced delays due to weather and the discovery of an underground storm pipe that needed replacement. Local leaders noted widespread community involvement and expectation that the playground will be enjoyed for many years.

Upcoming Green Day recycling event

The town also promotes seasonal Green Day events for residents to recycle items that do not fit curbside pickup and to safely dispose of hazardous or sensitive materials. The next event is scheduled for Saturday, November 15, from 8 a.m. to Noon at Church Street Park, with drive-thru service and multiple stations for shredding, textiles collection, electronics recycling, and safe disposal of household batteries and unused medication. Additional features include a collection for used cooking oil, a community food drive supported by a local grocery donation, and a program that refurbishes select old laptops into Chromebooks for donation. Residents are asked to follow staff directions, drive slowly through the site, and bring only specified items to appropriate stations.

Bottom line

The used construction equipment market is in flux. While demand and price stability helped many dealers hit targets in Q2, aggressive new-equipment incentives are narrowing the financial gap between new and used purchases and prompting dealers to change tactics. At the same time, community-level construction and civic projects continue, with local governments and businesses partnering on playgrounds and sustainability events that serve neighborhood needs.

FAQ

Key features at a glance

Topic	Key point	Impact
Used-equipment inventory	Declining on dealer lots	Fewer late-model units available for buyers
New-equipment incentives	Interest-rate buydowns, warranties, tech upgrades	Compresses monthly payments on new units vs used
Dealer strategies	Purge models, move to rentals, load inventory for tax benefits	Adjusts supply mix and timing of sales
Q2 dealer sentiment	80% met inventory targets; 90% saw steady/improving demand	Market remains broadly healthy despite pressure
Community projects	Playground reopening and Green Day recycling event	Local construction and sustainability efforts continue

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