Many industries, including construction, landscaping, agriculture and more rely on heavy machinery every day in order to carry out their daily tasks. But when it comes to heavy machinery, no equipment is going to last forever. When buying new equipment, it may seem as though new is the way to go. However, buying used machinery at equipment auctions can save your company so much money.
At Lyon Auction, we offer many equipment auctions all over the country. Whether you are buying or selling equipment, you want to ensure you are getting the best value. Below, we explain how you can determine the value of your heavy equipment!
Understand the fair market value of equipment
When purchasing used heavy equipment from equipment auctions, the first thing you need to consider the market conditions. The heavy machinery market fluctuates due to many factors, so the price of a piece of equipment may be different than it was a year ago. Although there are many factors that affect the price and value of a certain piece of equipment, the market itself plays a bigger role in determining value than you think. Your best chance at determining the value of used heavy equipment is by asking the dealer! Oftentimes they will be able to go in depth about the market in general, and how this may be influencing the price of the machinery.
What affects the value of used machinery?
Other than the current market conditions, there are also many other factors that play a role in determining the value of a set piece of equipment. Below, we dig deeper into some of these factors:
There are many different brands that manufacture heavy machinery, and some brands are much more reliable than others. Those who are purchasing used equipment will oftentimes pay more for big name brands. However, this does not mean that less expensive brands cannot perform as well as brand name equipment! Having access to details about the equipment will help you determine whether the value is true to the price!
Models and Features
Standard equipment models are usually less valuable than specialized pieces of equipment. This is primarily due to simple supply and demand, as more standard equipment is produced and sold. Specialized equipment usually pertains to very niche job duties, which inevitably can increase the value.
Also, each piece of equipment will come with different features. These features can make or break the equipment’s value, and plays a big role in the price of the machinery.
Age and Condition
Lastly, one of the biggest determining factors of the value of heavy machinery is the age and condition of the equipment. Obviously, older equipment is going to hold lower value than newer equipment. Likewise, equipment that is running well, cleaned up and has all proper documentation will hold a higher value than ones that aren’t. To determine if the price is worth paying, make sure that the equipment is running properly, and the price is true to its age.
At Lyon Auction, we strive to provide our customers with the highest quality of equipment. There are many different factors that we look at when determining the price and value of each piece of equipment. To learn more about our company, or to check out our upcoming equipment auctions, visit our website today!