2 machines exactly the same but....

[jc8]

Hello,

I'm new here and new to heavy equipment, first purchase coming up very soon and could REALLY use some advice!!!!

I searched but didn't come up with much! (I looked for depreciation...20% first year...then 5% every year after for about 5 years.)

If I was buying two identical machines both with the same hours, bucket only, same condition/options...

BUT....one's a 2011 the other a 2008 what's the price difference?

Jamie

 

[joispoi]

Welcome jc8,

If both machines are exactly the same spec with the only difference being on the ID plate where one says 2008 and the other 2011, there might not be any difference in price.

The used equipment market fluctuates. A used low hour machine that I passed on last year would cost me $7,000 more to buy if I wanted it tomorrow and it would probably have 800 more hours on the clock.

 

[John C.]

There will almost always be a moderate to big difference in price on that much change in age. Location and supply can affect that to an extent but on the whole most knowledgeable buyers that have other choices available won't pay the same. You could make an argument that the older machine with the same or fewer hours than the newer unit might be priced higher but I've only seen a couple of units in the last bunch of years sell for more. Rubber components are usually good for five to seven years whether the machine is working or not so you have a depreciation factor on condition right there. Sometimes you run into an old gem but in my experience they don't bring the dollars you would expect.

Your depreciation schedule is way off also. Right now the rule of thumb is to figure 15 to 20% drop the first year and at least 10% every year after. After five years there should be enough used units having sold in the markets to determine condition expectations and market values. Depending on condition and what kind of a machine it is, a five year old machine will carry no more than 30% of its original selling price after five years, and usually a lot less.

 

[jc8]

I'm interested in compact loaders...I've got my eye on a New Holland w80btc.

The problem with compact loaders is they are high priced right off the bat( most would agree!) and not in high demand. (good and bad in that there's some nice machines, bad that there isn't a whole lot to choose from.

Not interested in a SS or backhoe.
Thanks for replies.
J.

 

[JGS Parts]

The Used machinery market is so hard to judge and even if its the same model same year and same amount of hrs it also comes down to the operator and attachments it has been running and things. also you should look at your transport options also.

 

[williamyang]

The depreciation issue by accounting standard is easier to find out. But the real situation will be up to different areas, such as Asia, America, and Africa.



www.iheavymachinery.com

 

[UrParts]

The most important factors on the price of any machine are Make, Model, Year, Hours, General condition such as undercarriage or tyres, location, private sale or dealer. All this has to be taken into account and just because there is a difference in the year there may be other factors which mean they should have a similar price.

 

[Oxbow]

One possible exception is if a particular model that is older had less emission requirements and or problems than the older machine,the price may be higher than the normal pricing as described by John C. I am not familiar with the changes that the compact loaders have had to abide by, but the regen systems are most certainly going to raise maintenance costs.