Heavy equipment are often required by many industries, especially those involved with heavy tasks, construction, etc. However, it's not always financially feasible to go ahead and buy new equipment for all the necessities. In this case, purchasing used equipment becomes a convenient solution as it performs the same tasks as new equipment would.
Buying used earthmoving equipment is very beneficial. Some of its key advantages have been listed below:
If these benefits are compelling you to invest in used heavy equipment, then it's time for you to understand the various factors that affect the fair market value of used heavy equipment.
In reality, the fair market value of the used heavy equipment depends on the current market supply and demand and the competition for that equipment. Thus, determining the fair market value of the used equipment will enable you to identify its right price.
The factors affecting the fair market value of the used equipment are:
After understanding these factors affecting the fair market value of used equipment, you will now be faced with a choice of methods for determining this estimate.
1. Professional appraiser
You may get the job done by hiring an appraiser. An appraiser is a professionally trained and certified individual who has expert experience in this field. If the purchase of used equipment is for business purposes, then you must hire an appraiser who specializes in business valuations to get a market value that's as realistic as possible.
2. Comparative analysis
You may also determine the fair market value of the used heavy equipment by comparing it to other similar models in the market, after taking into consideration all the additional market factors. On the other hand, the recent selling price of similar equipment can be considered for determining what the used equipment would sell for if placed on the market this day.
3. Valuations by third party websites
There are numerous third-party websites available on the internet today that determines the fair market value of various items based on their proprietary formulas. These websites make their calculations after deriving multiple pieces of data.
If you want to do this task on your own, then you must visit all the reputed vendors selling the particular equipment that you are looking for. Inspect the equipment, ask them for their quoted price including extra fees, and note these down. Total the amount quoted by all the vendors and divide this amount by the number of vendors you have approached or several quotes you have received. The resulting figure is the fair market value of the used heavy equipment.