UK used equipment market strengthens with home market out-bidding Europe and world buyers
With OEMs slowing down or ceasing to manufacture due to Covid, the demand for good, late, low hours used equipment and machinery is higher than ever with buyers in the UK & Ireland out bidding European and world buyers, Chris Osborne, Territory Manger for Euro Auctions, Europe’s leading auction specialist comments.
The UK demand for good, late, low-hours used equipment and machinery has burgeoned during the last 12 months with no sign of demand slowing down.
Since the Covid lockdown and a slowdown in manufacturing, OEMs and main dealers have been running low on stock, with delivery times of new machines now stretching into 2022, driving interest in good used equipment, not just in the UK, but globally.
In Q1 of 2021 Euro Auctions can report a dramatic shift in buying, with buyers from the UK & Republic of Ireland bidding stronger and eclipsing buyers from Europe and the rest of the world. Prospective buyers in Europe have the same appetite for good equipment as buyers from the UK and Ireland and are registering for the Leeds auction in increasing numbers, however it is the local home market that is stronger in resolve out-bidding international buyers, with UK consignors delighted and particularly pleased with the results and prices being achieved at all sales. Interestingly, at all Euro Auctions sale sites across Europe, bidders from the home countries are now bidding stronger at their own home sales than in the previous years.
Chris Osborne, Territory Manager for Euro Auctions comments: “The UK market has strengthened as the construction, haulage, waste and agricultural industries in the UK have kept a busy work schedule throughout 2020 creating the usual demand for new machines. With access to cheap Government funding through the ‘Coronavirus Business Interruption Loan Scheme’ (CBILS), end users have had the opportunity to borrow with low interest rates, re-investing in their businesses, and bidding hard for one-year old machines. It’s natural that we are seeing prices increase with added competition between buyers to get their hands on the best equipment. UK consignors are particularly pleased with the results and prices being achieved. Regarding Brexit, we have been working with HMRC and our clients around the world to ensure that there has been little disruption to the buying and selling process and keep our UK auction attractive to all.
“Whilst our online sales through our dedicated auction platform have burgeoned during Covid, we do try to cater to the entire market and that is why we continued to host live, Covid compliant, equipment sales at our flag-ship site in Leeds. Now the largest sales auction site in Europe, at a typical Leeds sale we repeatedly see over 5,500+ pieces of machinery go over the ramp. At the last sale we had over 500 excavators for sale, many of which were new unregistered machines, as well as late, low hours lots. It is this that our customers like, having the chance to see so many types, makes and models of equipment at one sale site,” concludes Chris Osborne.
With new stocks depleted, auctions have become a vital alternative to main dealer services giving buyers an infinite choice of makes and models that buyers may inspect, try and buy, putting to work, and earning money immediately. New bidders and buyers are evident at all sales, with approximately 1000 new bidders registering for every auction, with 20% buying for the first time each sale.
Euro Auctions expects to see this trend of increased demand and reduced availability in the UK to continue through the majority of 2021. Once new supply from OEMs does catch up, it may ease, but with lead times for new machine and vehicle orders stretching into 2022 the market shows no real sign that demand for good used machinery will slow down during 2021.