The fair market value for the most popular used construction equipment is continuing it’s downward trend in 2016. The average resale and auction channels are delivering lower than expected pricing for sellers.
Auction pricing for the past nine months has trended downward with the exception of the the mega auctions in Florida. As expected, the auctions following February have delivered approximately 9% lower values.
Another trend that is consistent in the past twelve months is that a higher proportion of newer equipment is being sold.
So newer equipment being sold at lower prices means happy buyers and unhappy sellers.
So why is this happening? Much of it is related to strength of the US dollar and the oil price. However, this year the oil price has steadily increased, which will stabilize the energy sector within the United States if they can reach between a $70 – $80 per barrel. The future of the US dollar remains to be seen.
What does this mean to you? Good news if you are a buyer, now is the time to purchase what you need whether you are an individual or company. If you are a seller…….you might want to hold off until later in the year.
Source for information: Equipment Watch