How to Determine the Value of Used Heavy Equipment

Buying used heavy equipment is an excellent option for people working on a budget. As long as what you buy is in decent condition, you will still get the benefits you want for a better price.

Heavy equipment prices can get really high depending on the machinery you need. That could make them unaffordable for a company, especially when we talking about smaller construction businesses.

If you learn your construction equipment trade-in value, you know how much you can get from what you have or how much you will need to spend to get more. Here at CTC Equipment, we want to help you address this situation.

Below, you will find a used equipment pricing guide with the factors you should take into account to determine their price.

CTC Equipment offers a sales service for used equipment in Leamington, Ontario, Canada. You can also get parts from us and refurbishing services. Call us at 519-791-9616 to get more information about what we do.

Factors You Can Use to Determine the Value of Used Heavy Equipment

The best way to determine the value of used heavy equipment is to analyze a few factors. They influence the overall worth of the machine and its features, so you should always take them into account before buying anything used.

Naturally, all cases are different. The equipment you want could have specific features that increase or decrease its value. However, this could work as a general framework for each situation.

Age and Hours of Operation

One of the most important things to check if you want to purchase a used piece of equipment is its age and hours of operation. Older stuff will almost always have a lower value due to depreciation.

Why is it important to keep in mind the specific time the machine has been operating? Because it determines its condition and the lifespan it has left.

The truth is that, even if the machinery is still in neat condition, people will still take that into account to get a better deal. In these cases, you could ask for an inspection of the equipment to determine the true state of the products.

Brand, Model, and Dealer

As it happens with everything you want to buy or sell, the reputation of the manufacturer or brand of the used heavy equipment will alter its price. Products from well-known brands will always be more expensive.

This doesn’t mean that a popular product in poor conditions will be overpriced. Instead of studying each factor individually, people need to consider them all at once to make a decision.

Even within each brand, there will be products that will be more expensive than others. That depends on which one is the latest and their features.

If you want to determine the value of used equipment, you must consider advanced features with unique capabilities. The rarer the product, the more exclusive and expensive it will be.

Condition and Maintenance

Any problem with the physical state of the equipment you want to buy will affect its overall value. That includes its appearance, wear and tear, and damage.

This is the reason why selling used equipment is often difficult. It’s easy for products to get normal wear and tear over time, even if that doesn’t alter their features. However, it’s something people still need to consider.

On the other hand, the value of a piece of used equipment won’t change that much if the dealer has a documented maintenance history. That tells people the machine has been well-maintained.

Attachments and Special Features

As we said before, all kinds of equipment, whether they are used or not, will be more expensive if they offer exclusive benefits. We are talking about special features and attachments people won’t get in other options.

These attachments increase the equipment’s versatility and the tasks you can fulfill using it. You will often see machines with unique features if you are looking for something to address a specific situation.

Keep in mind that the condition of those attachments will also affect the value of the machine. They won’t make a difference if they get to the end of their lifespan.

Fair Market Value and Demand

Market demand is essential to determine the value of used equipment. Unfortunately, this goes beyond the condition of the product and the brand it comes from

You should always study the fair market value of the equipment you want to buy. The same applies to the economic conditions or phenomenon the industry the machines excel at is going through at the moment.

Why do people need to know about this? Because it could also increase the value of the estimate you may get from the dealer.

If everyone is trying to get the same type of machine at the same time, it will always be a bit more expensive. Likewise, the number of options on the market could alter the price.

When the machines you are looking for are difficult to find, the equipment is worth more. If you can get it everywhere, it won’t be that expensive.

That is how the market works in general. It’s not a good strategy for dealers to offer products at a more expensive price point than everyone else. When they are the only ones offering that in the city, they can increase it.

Warranty or Guarantees

Although this is not directly related to the equipment you are trying to buy, guarantees that make it a more interesting deal will improve its worth. This includes any warranty that could add value.

That, of course, will depend on the dealer that offers the equipment. Regardless of that, you shouldn’t let a good return policy, for example, make the price outrageously expensive if the machine is in poor condition.

Bottom Line – Get Used Heavy Equipment from CTC!

Getting used heavy equipment brings many benefits to the table. You can save money for other stuff and still get the features you are looking for. Besides that, the previous owner could give you guidance on how the equipment works.

If you build a decent relationship with them, you could contact the dealer to address future concerns.

While there are almost always financing options you can try, it’s easier to upgrade your equipment if you buy used machines. Nonetheless, this will only work if you get them from professional dealers.

If you want to know the value of used construction equipment, the factors you read on this page will help you. Are you trying to buy some? You can trust CTC Equipment.

Contact us to know what we have available and how we can help you. Call us at 519-791-9616 to learn more about our services and sales.