If you’ve ever bought or sold used trucks, prime movers, or even
trailers, you know there’s a lot at stake. If you’re dealing
with larger quantities or entire fleets, there is huge financial
investment involved. Understanding what influences prices will give
you a better idea of transport equipment’s true value, and help you
make more informed business decisions when it comes time to buy or
sell.
Here are some of the main factors that affect transportation
equipment pricing:
1. Supply & demand
Just like commodities in any other market, the laws of supply and
demand affect truck prices. As demand goes up or supply goes down,
prices rise as businesses compete for available vehicles.
Conversely, if the market is saturated with a particular type or
model, buyers have the advantage. Consider looking for trucks-or
buyers – outside your local area to take advantage of favourable
conditions.
2. Market conditions & economic
climate
These factors probably have the greatest impact on used truck
prices. In a slow economy, people are less willing to pay higher
prices, or aren’t afraid of lengthy negotiations to get a price
they want. And more companies sell their under-utilised fleets,
making it a buyer’s market. Industry cycles and seasonality –
dictating which kind of transport equipment is needed at different
times in different areas of the country or the world – can also
influence prices.
3. Manufacturer
Well-known name-brands often command higher prices. People have had
good experiences with them and trust them, or the name itself often
simply implies a certain level of quality. But lesser-known and
possibly less expensive brands may perform just as well. Having
access to detailed information and being able to compare models
side-by-side better helps buyers determine value.
4. Age & condition
Age is an important factor in determining price. Generally, trucks
depreciate as they age – they put a lot of kilometres on the
odometer, show signs of wear and tear, need more repair and
maintenance, or simply become out-dated by newer, more efficient
vehicles. And two identical trucks of the same age can vary widely
in price – one that’s well-maintained or has low kilometres can be
worth considerably more.
5. Reputation of the seller or former
owners
Sometimes, a company’s reputation can “follow” the trucks they
sell. This can be good or bad. If vehicles come from a reputable
organisation that’s known for buying good-quality transport
equipment and taking good care of it, buyers will often be willing
to pay more for it. If it’s equipment that’s been owned by a
company with a reputation for cutting corners, or it comes from a
relatively unknown company, people can perceive it as a “riskier”
purchase, and will offer a lower price.
One of the best ways to gauge pricing trends is to use a
resource that allows you to search a variety of equipment with
current and historical selling prices. Create a free account on Ritchie Bros.
website, and access equipment auction results from the past two
years.
About Ritchie Bros. Auctioneers
As the world’s largest industrial auctioneer, Ritchie Bros.
conducts hundreds of unreserved public auctions each year, selling
a broad range of used and unused equipment and trucks. Ritchie
Bros. conducts regular auctions at its permanent auction sites in
Brisbane, QLD and Geelong, VIC. For upcoming auctions, equipment
inventory and more, visit rbauction.com.