How much does the condition of equipment impact the value? Listen to Bill Albaugh describe how an asset's current condition can offer insight into the care that the piece of equipment has received over time and how that care — or implied lack of care — can influence a valuation.
Condition of the asset, whether it's for lending purposes or for trade valuation — the condition of the equipment has a huge effect. If you stop and take a look at advertisements of farm equipment or construction equipment and you see it on a website and that piece of equipment is faded and it has flat tires or it's sitting in snow or, you know, there's something broken on it, everybody's going to be less likely to make a phone call on that to you. They're going to start digging deeper into that piece of equipment because it doesn't show as good of care as a unit that is pristine condition on the photos.
You know your condition of the asset — and again, weather it's ag or construction, small or large — you know, you've got paint faded, broken windows, on the negative side of it is that it's going to cause a huge effect on on with the valuation is because people are going to automatically think that that has not had good care. On the positive side is you've got something that's got really good paint and the tires look good and it's clean and there's no leaks and everything looks beautiful on it, they're going to be much more likely to assign a good value to that piece of equipment if you're evaluating it. And secondly is, if you're in the business of selling that equipment or even auctioning that equipment, you're going to get top dollar for it because it does look good. It does stand up straight and it markets itself.
Reviewing pictures of equipment is an important part of properly valuing trade-ins for ag and construction dealerships. The HeavyWorth platform puts all the pictures and details in one place to make it easy to review all of the information about an asset when assigning a value. To learn more about how HeavyWorth's software can save you time and hassle, contact us today!