The used construction equipment market is massive – a total value in excess of $AUD2.4 billion, with an average value of approximately $611 million per annum for the constructionsales.com.au site alone.

With countless assets listed and sold, and an umpteenth number of categories, how do you know if you’ve got a good deal?

If you are a buyer, broker or seller in the used construction equipment market, you will appreciate a helping hand in navigating what can often be a minefield of over inflated prices, depreciation and sourcing the right piece of equipment for the job.

GoGetta Equipment Funding, in partnership with constructionsales.com.au, has collected pricing, depreciation and availability trend data from the past four years – and summarised it in a neat little guide.

Digging the Dirt on Used Equipment highlights key industry findings, trends and insights never available to the public – until now. It provides readers with valuable insights into how the Australian market is using and consuming secondhand construction equipment. What are they buying? How much are they spending? How does currency fluctuations, economic factors and seasonality affect the market?

One insight that emerged from the data was the popularity of certain items of equipment. Through widely collected data, we were able to pinpoint the top five most popular pieces of equipment from the testing period of August 2011 – July 2015.

They are:
  1. Excavators
  2. Trucks
  3. Skid Steer Loaders
  4. Attachments
  5. Wheel Loaders

 

‘Trucks’, of course, is a category that includes a wide variety of machinery that cannot be analysed in the same detail as the other pieces of equipment. So for the sake of this article, we will expand our list to also include the 6th most popular item, Dozers.

Let’s take a look at the details surrounding these equipment categories.

ExcavatorExcavators

How many?

Over a time period of 2011-2015, there were a massive 12,320 listings for secondhand excavators.

 

How much?

The average price of a secondhand excavator was $61,600.

 

How old are they?

The average secondhand excavator is 6 to 9 years old.

 

Top 5 makes and % of equipment listings in the four-year period:

Caterpillar 22.6%
Komatsu 16.7%
Hitachi 11.9%
Kobelco 8.0%
Yanmar 7.0%

 

 

Skidsteer Loader  Skid-Steer Loaders

 

How many?

During the given testing period of four years, there were 5,563 listings for secondhand skid-steer loaders. The split between equipment classes were as follows:

Wheeled 62.2%
Track 34.9%
Mini 2.9%

 

How much?

On average, they will set you back around $27,300.

 

How old are they?

On average, they are 6 to 9 years old.

 

Top 5 makes and % of equipment listings in the four-year period:

 

Caterpillar 26.9%
Bobcat 23.7%
Case 9.9%
ASV 7.5%
New Holland 5.7%

 

Machine Attachment  Attachments

 

How many?

In comparison, there were only 2,824 listings for secondhand machine attachments from 2011 to 2015.

 

How much?

The average cost sits around $6,000.

 

How old are they?

Interestingly, the average age of a secondhand attachment is between 2 to 5 years old.

 

Top 5 makes and % of equipment listings in the four-year period:

With 873 makes of machine attachments, there are plenty of brands on the market, but Caterpillar still dominates with nearly 10% of the market share.

Caterpillar 9.5%
Komatsu 4.5%
Workmate 2.9%
Hitachi 2.5%
Sec 2.0%

 

Wheel Loader  Wheel Loaders

 

How many?

There were 4,478 wheel loaders on sale in the four-year period.

 

How much?

The second most expensive of the top 5 equipment categories, a secondhand wheel loader will cost on average $107,300.

 

How old are they?

The average piece will be 6 to 9 years old.

 

Top 5 makes and % of equipment listings in the four-year period:

Caterpillar 52.2%
Komatsu 16.4%
Volvo 9.0%
Hyundai 4.0%
Case 2.7%

 

 

Dozer  Dozers

 

How many?

There were 2,547 dozers listed for sale over the period.

 

How much?

The most expensive of the top equipment categories, a secondhand dozer will set you back on average $168,100.

 

How old are they?

A dozer will also be around 6 to 9 years old.

 

Top 5 makes and % of equipment listings in the four-year period:

Caterpillar 77.5%
Komatsu 16.0%
Case 1.4%
Dressta 1.1%
International 0.8%

 

Across all equipment classes, the data shows that it is very much a dealer-centric market, with 68% – 82% of all listings by equipment dealers.

Depreciation all round is minimal, with an average annual depreciation of less than five per cent. The data in the guide reflects what industry experts see, which is that secondhand construction equipment can be a solid investment.

The construction industry is a strong part of the Australian economy and small businesses make up a large portion of players; however, it can be difficult for many to access funding to get the equipment they need to get the job done.

GoGetta provides a highly flexible, rent-to-own model that allows business owners to build equity in their equipment with each affordable payment. Unlike traditional hire options, at the end of the 12-month agreement, you can choose to purchase with a generous rebate, or return the equipment it if it is no longer needed or if your situation changes. All rental payments are 100% tax deductible*.

 

Digging the Dirt cover

For more insights and key market trends, make sure you download your copy of the Digging the Dirt on Used Equipment guide here

 

*GoGetta does not provide legal, tax or accounting advice. Please seek professional advice from a qualified person.