A mistake that businesses and equipment owners can sometimes make is underestimating the value of their used equipment. Used equipment, when marketed and sold correctly, can create a solid return on investment for owners. What’s more, according a study form Rouse Rental Report, the value of used equipment increased in November of 2012, an indication of the value it has to the marketplace. Below are a few reasons that explain why used equipment is appealing to buyers and how it can increase your cash flow.
1) Convenience. One of the major reasons that there continues to be an active market for used equipment is that purchasing used is not nearly as complex as purchasing new is for potential buyers. It is very difficult to know whether you are getting a good deal while buying new, as there are a bevy of mitigating factors, including trade-in values, finance plans and incentive savings. Conversely, a buyer can easily figure out if they are getting a good price on used equipment simply by researching the book value, comparing the price to the retail value of a new model, or by researching how much it is going for in auctions. Auctions are a true gauge of market value, and thus, probably represent the actual value of the asset.
2) Less Risk. Businesses and consumers are always looking for low-risk and economical purchases, two things that buying used provides.
3) The better the condition, the better the sale. Taking top-notch care of your equipment will not only make the product more efficient while you use it, it will also increase the resale value if/when you choose to sell it.
The most important thing to remember is that used equipment, especially equipment in good shape, has tremendous resale value and a significant market of potential buyers. Choosing to sell equipment at an auction is tremendous opportunity for buyers to make an economical purchase and for sellers to earn a solid return on investment.
Posted By: Petrowsky Auctioneers