New Study Assesses Impact of Emissions Regulations on Used Construction Equipment Sales

Manfredi & Associates is studying the impact of U.S. emissions regulations on used construction equipment sales and pricing.

Manfredi & Associates, Inc. announces it is offering a multi-client study entitled Quarantined Markets? The Possible Isolating Impact of U.S. Emission Regulations On Used Construction Equipment Sales and Pricing.

The U.S. Clean Air Act of 1990 established air quality standards to be met by all on-highway vehicles and off-highway construction equipment. A 15L truck engine selling for $25,000 in 1997 now has a list price more than double that producing more heat with lower fuel economy. Off-road engines used in construction equipment are just entering the expensive stages of meeting emissions regulations with increases expected to be greater than what was observed with on-highway truck diesel engines. There are many unintended consequences created by the regulatory process – including the impact on used equipment sales and prices.

What effect will emission regulations have on used construction equipment following the Tier 4 Final regulations?

The study is designed to answer the questions:

  • Will Tier 4 equipment be saleable outside Tier 4 markets?
  • How will equipment users respond to the increased cost of purchasing and operating Tier 4 machines? What will be the impact of Tier 4 machines on used equipment sales?
  • What will be the impact of Tier 4 machines on the U.S. and Canadian rental markets?
  • What will be the impact of Tier 4 machines on the worldwide auction market?
  • Will Tier 4 emissions devices be disabled or modified on machines sold outside Tier 4 markets?