Assigning trade-in values to specialized or uncommon equipment

For professional evaluators reviewing common assets, assigning values can often be straightforward and even routine. However, even the most experienced evaluators can be faced with putting values on equipment that's specialized or not commonly used in the dealership's footprint. We asked Bill Albaugh how he handles highly specialized or uncommon equipment.

You know, that's an excellent question and I think that you really truly need to look at will that unit sell within the next six months in your area? and, if it won't, you really need to take a strong look at how you value that piece. You know, almond pieces, specialty narrow tractors — is there really actually a used market for it? And if there's not, then you've got to be strong enough to be able to maybe tell that grower or that customer that, "hey, I don't want to take it" or "hey, I'll consign it and try to sell it for you" versus trying to take the risk on it and bring it in and just have it sit at your yard for the next three years — or you work out something with an auction company. And it goes back to when you take something in on trade your first question in your own mind is can I sell it here in my own territory? And, if the answer is no, that takes a huge impact on the value that you need to place on it because you know you're going to have to spend advertising somewhere else. You know you're going to have to pay freight to get it somewhere else. And so sometimes the best answer is I'm just not going to take it on trade. 

The HeavyWorth platform can handle information about equipment of all types, regardless of geography or specialization. By putting all the relevant information in one convenient place, it makes it easy for evaluators to make the decisions about the values to assign to the assets — and if they want to take them in on trade at all. Learn more at https://heavyworth.com/software