When the Tier 4 emissions standards began to require the use of diesel exhaust fluid, or DEF, in heavy equipment engines roughly a decade ago, we saw a prolonged demand for older equipment that didn't meet the standards. We asked Bill Albaugh if that demand still influences older equipment values or if enough time has passed that it's no longer relevant.
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Often a producer or construction contractor looking to trade-in a piece of equipment is motivated to look for the highest value possible. It's common for such a customer to come to the table with preconceived notions of the value of the equipment based on a cursory search of for-sale listings on various websites or past auction results from local auctioneers. We asked Bill Albaugh what he says to a customer who is claiming his trade-in valuation is too low.
Sometimes the used equipment that dealerships are asked to value as trades aren't very used at all. Sometimes they're deciding how to price units with very little use. Since it's harder to find many comparable sales on such low-houred equipment, we asked Bill Albaugh how he goes about determining how to most effectively value the nearly-new equipment for sale.
One of the questions we are frequently asked is how someone can prepare equipment before the valuation in order to receive top-dollar for his or her trade-in. We posed that question to Bill Albaugh who suggested a few tips to get equipment ready before calling the dealership to come take a look.
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.
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.