Many of our customers are looking to upgrade this year or simply get rid of older equipment while it is still a seller’s market. Because of supply chain issues and scarcity of obtaining new equipment, the used equipment market remains extremely strong. If you have equipment or trucks that you have considered selling, now is a good time to take advantage of the market. To ensure you get the maximum value, we have a few tips to help you achieve your goal.
If the unit is titled
First, consider researching how much a comparable unit is selling for. www.trucktrader.com can be a great resource in finding similar makes/models to the unit you are selling.
Make sure the VIN tag/sticker on the truck or trailer is easily read. We have seen a number of trucks recently where the VIN sticker was missing or torn which makes the truck impossible to fund. It only takes a few weeks to order a replacement VIN sticker from the manufacturer.
If you have a lien on the truck, get a payoff from the lender so you can make sure you factor in your potential gain from the sale and are aware of an hidden fees your bank might charge for the sale.
Also, consider listing your vehicle for sale with a dealer or reseller. Even though the dealer may mark up the unit to cover their marketing costs, the advertising/listing can help you get a better value on the sale as well as access to more buyers. Most transactions we have funded for private sellers have sales prices that are 10-20% less than that same truck/trailer would sell for from a dealer. On the buyer side, the buyer can secure better payment options on a dealer transaction vs private sale.
If the equipment is not titled (this includes construction equipment, manufacturing equipment, etc.)
Make sure you can find the serial number/nameplate. This is crucial when you sell as this is the only identification number on the equipment. The make/model/year being legible is key in doing an asset evaluation on the equipment for the buyer.
Consider selling the equipment thru an online machinery broker/reseller. This is more crucial than on a titled unit for a number of reasons. We have reviewed many private party sales and the equipment doesn’t appraise out nearly as easily as if it is routed thru a reseller. Plus, by going thru the reseller this eliminates the need for the lender to do a blanket lien search on the seller. You may not realize it but any debt you have with your bank most likely has a blanket lien covering all your equipment. If you do not go thru a reseller on the sale and the buyer is planning on funding the equipment the lien search can significantly delay the transaction. Just like on titled equipment, buyers have limited access to company’s willing to fund private party sales.
If you are looking for additional help in potentially selling your equipment you can contact us. We have a network of vendors and re-sellers we have funded for our customers and may be able to connect your company with the best source for your specific equipment/industry. In addition, if you have a potential buyer that needs funding, we can help facilitate the sale as well. You can even list you have funding options available to increase the pool of potential buyers.
