Factors Influencing Used Heavy Equipment Price
While buying or selling any equipment, there is much more to consider in addition to its condition and age. If you have ever sold or purchased heavy equipment, you surely understand that there is a lot at stake. These are huge financial investments and everyone wants to receive the best value.
Clear understanding of the factors that influence the price of heavy equipment provides us a clear idea about its true value. This makes it easier for sellers to sell their machinery and allow buyers to purchase with confidence.
Mentioned below are the factors that have a significant impact on used heavy equipment pricing.
- Demand and Supply: Just like any other commodity available in the market, equipment prices are also affected by the laws of demand and supply. Prices tend to rise with an increase in demand or decrease in supply as the buyers compete for the limited number of available machines. Conversely, buyers have the advantage of a lower price, if a particular type of equipment reaches the market saturation stage. Therefore, if you are a buyer, you should look to sell your equipment in areas with high demand and low supply. As a buyer, you can get a better price by purchasing from a market that has an oversupply of the type of machine you want to buy.
- Economic climate and market conditions: The conditions of the economy and market has a great impact on demand and supply, and therefore on the used equipment price. When there is an economic slowdown, buyers are not likely to pay higher prices. At the same time, more owners will be keen to sell their under-utilised equipment. However, the market conditions are not dictated entirely by the economy. Certain industries are seasonal in nature or have cycles. The demand is greater during the peak seasons, making equipment more expensive.
- Manufacturer: Out of many equipment manufacturers around us, the market is dominated only by a few. Many people only want to buy these name brand products, even if that means paying more. In some cases, however, less expensive products from lesser known brands can perform a job just as well.
- Model and features: There is a lower price fluctuation for standard models and these models are easier to sell compared to specialised pieces of equipment. Attachment and features can also have a significant impact on equipment price, and it can be positive as well as negative.
- Age: Often times, this is the first question we ask before purchasing used equipment. In general, the price of any machine depreciates as it ages. In addition to wear and tears, older machines have higher repair and maintenance requirements.
- Condition: Regardless of age, any piece of equipment will not fetch a good price unless it is in good overall condition. Please remember that well-maintained older equipment can sell for a decent amount. Having the equipment cleaned, painted, and repaired can result in increasing its price.
If you want to find out more about buying or selling your used equipment, please get in touch with us at K and G Machinery.