Six things to consider in deciding when to sell your equipment and trucks
Deciding when to sell your heavy equipment and trucks is equally as important as deciding how to sell them, and ultimately your selling method may be influenced by the “when”. Do you need to sell fairly quickly, or can you afford to wait? Before setting a time frame on the sale of your assets, here are six things to consider in deciding when to sell.
1. Profit vs. cost: How much is your equipment being used?
Calculate how much profit a machine is generating with current and upcoming jobs compared to operating costs, maintenance, storage, and depreciation. If the latter costs start to equal or outstrip what the machine is bringing in, it might be time to sell.
2. When will you use your equipment again?
Consider upcoming contracts – both those signed and any RFPs you’ve tendered. If it looks like a machine will be sitting idle for some time, it may make more sense to sell. You can convert your equipment into cash and put the funds into another area of your business, or buy a different machine that allows you to expand your business capabilities.
Think of Ritchie Bros. as an easy method of fleet management ¬– when the time comes, you can easily buy a similar machine again at one of the hundreds of live unreserved auctions we conduct every year or on our secure online auction marketplace, EquipmentOne.
3. What are the current market conditions?
It pays to do your research and find out where your equipment is in high demand and how you can tap into those markets. One way to mitigate the ups and downs of demand in your local area: sell your equipment and trucks through a channel that helps you reach buyers from different regions and industries.
With our global customer base—plus multi-lingual marketing and online bidding—Ritchie Bros. can help you reach buyers in geographic areas and markets where your equipment is needed.
4. How old is your equipment?
As machines age and depreciate, repair and maintenance costs start to add up and you could miss revenue opportunities due to equipment downtime. You should consider selling while your equipment still has useful life in it – and therefore resale value.
Turning over your equipment fleet regularly is one way to keep your costs at a minimum, and your equipment at maximum operating efficiency.
5. Do you need different equipment or more specialized machine?
If upcoming jobs require a different type of equipment than you currently have, offset the cost of the new machine by selling one or more machines that aren’t suitable for the job or are rarely used.
Our live unreserved auctions and our online auction marketplace always offer a massive selection of equipment and trucks to buy, so you could even sell one machine and buy another to replace it at the same time.
6. Do you have a trusted advisor to help guide your decision?
One the best resources you can have when making the decision to sell is a trusted advisor. Our experienced reps know the equipment market, and can advise on when and where to sell. Your Ritchie Bros. rep can to help get you the best returns possible within a time frame that meets your business needs.
About Ritchie Bros.
Ritchie Bros. is the world’s largest industrial auctioneer. We helped thousands of companies sell US$4.2 billion of equipment and trucks in 2014, through our live unreserved public auctions (with on-site and online bidding), and our online auction marketplace EquipmentOne.
Complete this simple form and one of our reps will contact you to discuss how we can help you sell your equipment. No obligations!
You can also visit EquipmentOne.com, sign up for a free account and list your equipment for sale (currently available in the USA only).
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