HeavyWorth provides software for dealers and lenders to streamline their valuation processes. But we're also a services company, and one of the services we provide is on-site, turn-key valuations of equipment. Last month, I had an assignment to capture information and pictures of a trucking fleet in another state for a lending institution. Since the trucks were over-the-road during the week, we had to schedule the site visit on a Saturday. Because it was an out-of-state trip, I didn't arrive back home until late Saturday evening with all the photos, VINs and other details of the trucks safely on my phone.
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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.
HeavyWorth provides a software platform for equipment dealerships to streamline their own evaluation processes and free themselves from the many disconnected tools that are trying to do the same thing - to put the right pictures and information in front of their evaluators. However, there are other industries like lenders, estate planners, attorneys and insurance companies who may not have professional equipment evaluators on staff. They need values assigned to equipment that isn't being remarketed or traded in, and they need a trusted third party to step in and help. Let's take a look today at what we call the HeavyWorth value.
Used equipment supply and demand changes — as well as commodity market fluctuations — can have a profound effect on equipment values. The same asset can be worth substantially more or less in a matter of months. Bill Albaugh sat down last fall to explain why it's always crucial for ag and construction dealerships to look to the future when placing values on their used equipment trade-ins.
When determining values of heavy equipment, some of the factors aren't related as much to the nature of the asset as much as they are about the ability of the asset to be matched by the local market. Bill Albaugh describes how an asset might or might not fit the local market based on demand and configurations, as well as how transportation costs might have a negative impact on the value of ag and construction equipment.
Glenda Wegener is HeavyWorth's go-to resource for lenders and the financial services industry. It's no accident that our lender clients trust her to help them incorporate HeavyWorth's software and services into their equipment evaluation processes — her background makes her uniquely suited to relate the needs of accurate and current collateral valuations to the challenges of assigning values to farm and construction equipment.
It's important to have an eye on the market when valuing heavy equipment. We discussed the current market saturation of used combines earlier this month, but combines aren't the only asset type experiencing market saturation. Watch Bill Albaugh talk about some other asset types that are seeing market-induced constraints on values.
A large part of the valuation process for farm and construction equipment is examining the condition, age, usage and specifications of the assets. But a proper valuation also takes into account the nature of the market and the supply or saturation of similar assets in the area. Watch Bill Albaugh describe what he is seeing regarding the current market saturation of used combines and how that consideration must impact the values of trade-ins of harvesting equipment.
Dusty Reynolds is HeavyWorth's founder and visionary. He works equally hard at keeping us pointed in the right direction as he does finding equipment dealerships who could benefit from using our platform to streamline their equipment valuation processes. With his midwestern background and diverse professional resume, he has a knack for quickly understanding business problems and devising workable solutions.
We're hosting a webinar on Thursday, March 4, at 2 p.m. central. A live round table discussion will feature the HeavyWorth team discussing what we're seeing in the field as we have conversations with equipment dealers and the pain points they're facing when trying to integrate disparate software products. We'll talk about the valuation process and trends we're seeing in the marketplace and then open the discussion to questions from the audience.