Deciding when to sell your heavy equipment and trucks is equally important as choosing how to sell it. Because of the COVID-19 pandemic outbreak, some of your assets might not be as frequently used as before, and you might start thinking about selling them. Or perhaps you are experiencing a high utilization and need to get cash to renew your fleet. But how do you decide when and how to sell? Which factors can you look at to get the best returns? Here are six tips which will help make a wise decision.
The first step is to calculate how much profit a machine generates with current and upcoming jobs compared to operating costs, maintenance, storage, and depreciation. If these operating and maintenance costs start to equal or overtake what the machine is bringing in, it might be a good time to sell.
Consider upcoming projects and contracts, both confirmed and expected. If it looks like a machine will be sitting idle for some time, it may make more sense to sell. This decision can help you 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 repurchase a similar machine at one of the hundreds of unreserved auctions we conduct every year or on our secure online auction marketplace, IronPlanet.
It is worth doing your research and finding out whether 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 countries, regions, and industries – in Europe and beyond!
With our global customer base—plus multi-lingual marketing and online bidding—Ritchie Bros. can help you reach buyers in those geographic areas and markets where your equipment is most needed.
As machines age and depreciate, repair and maintenance costs start to add up, and you could miss revenue opportunities due to equipment downtime. It would help if you considered selling while your equipment still has a useful life and, therefore, resale value. Regularly evaluating and adjusting your equipment fleet is one way to keep your costs at a minimum and your equipment at maximum operating efficiency.
If upcoming jobs require a different type of equipment than you currently own, consider offsetting the new machine's cost by selling one or more machines that aren't suitable for the job.
Our unreserved auctions and our online 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.
One of the best resources you can have when deciding to sell is a trusted and knowledgeable advisor. Our experienced reps know the equipment market and can advise on when and where to sell. Your Ritchie Bros. rep can help get you the best returns possible within a time frame that meets your business needs.