When is the right time to sell my machines ?

In de category Sell your machine to Machinery Resale ?

I would like to comment on the consequences of certain scenarios.

Waiting to sell old machines will depreciate them. In other words, they will have to be sold at a lower price since they have aged even more. Some people might say: “These older machines were fully paid for, they are not costing me anything and even when used but briefly, I can still make money with them.”

True and not true.
True, these old machines generate cash flow.
Not true, the likeliness of repairs should be taken into account.
Low use and small turnover will be absorbed easily by unexpected repairs.
And then there's the negative impact of an old fleet on your company image and branding...
Customers are willing to pay more for younger machines.

Selling younger machines too quickly is a difficult thing and demands a serious effort from your organization.
Why? Because you need to reach a certain price level. And that will require specific customers. Finding these customers will require the necessary effort from your marketing department. And the question remains... Will it pay off in the end?

So... Don’t sell too soon and don't sell your machinery when it's too old... I'm sure you could have figured that one out yourself. But allow me to share my experience in the market with you.

The life span of a piece of equipment depends on the type of equipment. Is it the type that has a rough life (e.g. a skid steer loader in a demolition application)? Maybe its best years are behind it after 36 months... During these 3 years it will usually have been covered by the manufacturer’s warranty. You could risk using it another year, but the general advice would be to sell it before it turns 5.

The same goes for generators when they are used frequently. A generator can operate for 2000 or more hours per year. This means 8000 to 10000 hours in 4 to 5 years. A normal criterion for overhaul is the number of hours of operation of the engine, which could very well be 14000. When the machine was used for less than 10000 hours, it will still have a certain value in the used equipment market because it can be used for a couple of years more (less frequent use (second life)).

And if we talk about portable air compressors, it's a whole different ball game...

Portable compressors usually run for 500 hours or less a year (small machines - less than 10 m3 per minute or 380 cfm) / 1000 hours or less a year (bigger machines). Technically speaking, these machines will have a 12 to 16 years life span... Commercially speaking, this type of equipment should not be older than 8 to 10 years when sold. Because in that case, it can still generate good money when remarketed.

I can give you more examples or even zoom in on specific markets or fleets. If you have a question about a specific type of equipment, feel free to give me a call or to contact me by e-mail.

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