Five things to consider in deciding when to sell your equipment
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.
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.
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.
Tractor-Part.com offers a massive selection of tractor and equipment parts at significant savings , so you can save money fixing up that machine before you sell it.