The impact of tire condition on used equipment values

Often overlooked by evaluators, assessing tire condition plays a critical part in properly valuing used equipment. Because they can be so expensive, forgetting to account for the rubber on a trade can be a significant lapse in diligence. Watch Bill Albaugh explain why tires matter so much to getting an accurate valuation.


Tires have a huge effect on evaluations of equipment and, if you really stop to think about it, even on vehicles. But, specifically, on a tractor — a big, row crop tractor, 300 horsepower with tires — if you've got bad tires, you're looking at eight tires. You're looking at duals on the rear and duals on the front, and you're looking at, let's say, $2000 per tire — $2500 per tire times eight. That's $20,000. So that can make a big swing in the value of a piece of equipment — good or bad. Or, if it's got brand new tires, obviously, it's a home run. But if it's got less than 50% of rubber or even less than 25% of rubber, you're looking at an expense of, and a devaluation of, the trade value — or the valuation of the equipment — of $20,000.


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