OEM incentives drive buyers from used construction equipment to new machines

Used construction equipment is disappearing from dealer lots as aggressive new-equipment incentives shift buyer demand

Dealers are moving used machines faster than expected as large manufacturers push aggressive incentives on new equipment. A new industry survey of dealers at 150 locations finds used inventory is tightening and promotional financing programs are reshaping the market for late-model machines.

Top takeaways from the dealer survey

The heavy-equipment research firm that conducted the study reports that 80% of construction dealers met used inventory targets in Q2, and 90% said used-equipment demand was steady or improving during the same period. Stable used prices and resilience to tariff uncertainty helped support those results. Still, manufacturer promotions for new machines are creating headwinds for used sales.

Why used machines are losing some buyers

Manufacturers are offering a growing mix of incentives that include interest-rate buydowns, extended warranties and technology upgrades. Industry respondents point to promotional financing — particularly temporary reductions in interest rates on new machines — as the most powerful factor. With some new machines available at effectively 0% interest for promotional periods, monthly payments on a new unit become comparable to, or cheaper than, payments on late-model used units carrying 4%–6% or higher rates. This makes many buyers favor new equipment when price-for-price comparisons are close.

Dealer reactions and inventory strategy

Dealers are adjusting in several ways. Some are electing to purge certain late-model units — notably higher-hour or lower-condition examples from model years such as 2022 — because the monthly payment gap with a new machine is too small to justify keeping them. Others are converting late-model used machines into rental fleet assets: rent the machine for six to 12 months to generate revenue, add hours, then sell the machine later as a higher-hour used unit. A portion of dealers plan to stock up on used equipment in the third quarter to take advantage of upcoming tax incentives, including 100% bonus depreciation expected at year-end.

Market outlook and Q3 expectations

The report shows mixed short-term expectations: 40% of dealers expect used inventory levels to increase in Q3, and 40% expect levels to stay the same. The remainder anticipate declines. Ongoing construction activity tied to large commercial projects and strong homebuilding in some regions continues to support dealer sales overall, even as competition between new and late-model used equipment intensifies.

Local operator perspective and sales behavior

At the dealer level, sales teams are more inclined to offer new equipment when attractive finance packages and warranty or technology boosts make the new-option economically competitive. That shift in salesperson preference is driving some of the accelerated turnover of certain late-model used inventory and pushing dealers to rethink valuations and disposal strategies.

Local community projects and recycling services: Morrisville updates

Playground reopens after multi-year effort

A town playground reopened after years of planning, fundraising and construction. The new play area includes separate spaces for 2–5 year-olds and 5–12 year-olds, with slides, monkey bars, a jungle gym and swings for infants, toddlers and older kids. Local engineering work produced concept plans that were delayed by the pandemic, and construction faced setbacks from weather and the discovery of an underground storm pipe requiring replacement. Funding came from a county community development block grant totaling $300,000 and a $50,000 corporate donation to support installation. A materials firm donated playground mulch. After the ribbon-cutting, children eagerly pressed to try the new equipment, and families say they plan frequent visits.

Green Day recycling event details

The town runs seasonal Green Day events each spring and fall to accept items that do not fit regular curbside recycling and to handle hazardous or sensitive materials safely. The next event is scheduled for Saturday, November 15, from 8 a.m. to noon at Church Street Park (5800 Cricket Pitch Way) with drive-thru stations staffed by town employees and volunteers. Services include paper shredding (limit two bags or boxes per household or business), textile collection, Goodwill donation drop-off, electronics collection handled by a specialty recycler, proper medication disposal, battery drop-off (excluding large vehicle batteries and damaged/leaking batteries), and composting of unadorned pumpkins. There are instructions for safely collecting used cooking oil for drop-off and information about eligibility for old laptop donations to a conversion program that repurposes units into Chromebooks. The event also hosts a food-drive collection supported by a local grocery gift card donation.

What this means for readers and equipment users

For contractors and fleet managers, the changing finance landscape means evaluating total cost of ownership, monthly payment comparisons and the value of warranty and technology add-ons when choosing between new and used equipment. Dealers are responding with a mix of sell, rent and hold strategies, and some buyers may find opportunities in rental fleets or from dealers clearing specific late-model machines. Community members benefit from continued investment in local amenities and recycling services that extend reuse and proper disposal options.