It is very important to determine a fair cost when you are in the market to purchase used machinery. You need to understand the variables that determine the value of used equipment so you can navigate the market and find the best machine while staying within your budget. If you are in the market to find used construction equipment for sale, understanding the factors that affect the resale value of equipment will help you with your search. The used construction equipment market fluctuates due to a number of different reasons. However, there are some things that have a bigger impact than others.
With heavy machinery, newer equipment tends to fetch a higher price than older machinery because the value of heavy equipment depreciates over time. However, you can also get a good price for older machinery if it is well maintained. For instance, if there is a newer piece of equipment on the market but the older one is in a better condition because of excellent maintenance from the original owner, chances are that the older model may sell for a higher price.
In addition to its age, the condition of a particular piece of equipment directly impacts its resale price. Sometimes, if older equipment is in better condition, it can get a better price than newer machinery. When you are trying to sell used equipment, it is very important to provide detailed maintenance records.
Equipment that has a history of proper maintenance with genuine parts can get a higher resale value. The resale value of used equipment is impacted by how well the previous owner cared for the machine. Other things that are important to buyers are touch-ups and repairs such as a new coat of paint or an engine replacement.
One factor that a lot of people overlook is the annual running hours of the machine. The price you can fetch for the equipment will fluctuate depending on whether the equipment is underused or overused. Usually, you can get a higher value for underused equipment.
Supply and Demand
Another thing that has an impact on the price of used equipment is the supply and demand cycle. When the demand for equipment is high in the industry, it affects equipment availability. At times like these, the price of used equipment tends to go up.
However, if the market is saturated with certain makes and models of equipment, the buyers have the upper hand. Since there are a lot of options available in the market, buyers can find the most competitive price for the equipment. When supply is high or when it outpaces demand, buyers can easily look around to see other options to find the best deal.
Brand name recognition is an important factor that tends to impact the price of used machinery. Sellers can get a better resale price for equipment from well-known brands as compared to generic or off-brand machinery. Buyers tend to pay more for brands that they recognize and can trust. For instance, if you were to look for a Caterpillar motor grader, its price may be higher than that of a similar machine from another brand. However, for contractors and heavy equipment users, it would be a worthwhile investment.