Equipment Appraisal Blog | Understanding Machinery Appraisals

Trucking Industry Trends: How Tractor Appraisal Keeps You Ahead

Posted by Equipment Appraisal Services on Tue, May 30, 2017 @ 12:04 PM

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If there's one thing that always stays the same in trucking, it's that everything changes. The past few years have seen high and low fuel prices, extreme demand and complete lack of business, easy hiring and hard to find drivers. But what trends are ahead for the trucking industry? Find out how a tractor appraisal can help you keep ahead of industry trends no matter which way the market goes.

Trucking Industry Trends: How Tractor Appraisal Keeps You Ahead

  • Trucking policy is an unknown at this point. With a relatively new administration in office still shaking things up, it's really difficult to know how the industry will be impacted by policy changes. President Trump made it into office by promising to make America great again by promoting American business, which would suggest an increased demand for trucking services, but how well Congress will work with him on these issues may be another story.
  • Are you ready for Elogging? By the end of 2017, all trucking companies will need to be in compliance with the new regulations concerning these areas. This means there's a stronger demand for trucks that already have this capability, which may raise or lower your tractor values depending on whether you already have the technology in place or not.
  • Freight costs are on the rise. With our economy solidly in recovery, consumer confidence is rising. Many consumers are using this opportunity to replace items that were allowed to slide during the recession, such as appliances, vehicles, home improvements, clothing and virtually any other aspect of consumer spending. With the increased interest in buying online, shipping traffic should be strongly on the rise, raising your tractor values as more demand for shipments come through your business.
  • Get your reefers moving. With elogging putting a stronger demand on drivers' time and increased consumer demand for fresh and frozen items, the strong market for refrigerated trucking is on the rise. If you're able to put more trailers and drivers on the road to maximize your reefer fleet, you're almost certainly going to see good profits, even as fuel prices are moving their way slightly higher than in the past year or two.
  • Work together. Virtually every industry in operation today is undergoing digitization, which is leading to significantly different business models than have been used in the past. A major part of digitalization is the collaboration between your business and other logistics and supply chain businesses, forming partnerships and coalitions to reduce overall costs and increase overall consumer happiness with how a product is moved from the factory, field or farm to their home. These partnerships are focused on improving energy efficiency, reducing handling and providing superior outcomes for all involved.

When you stay ahead of your equipment values, you can ensure that your business is in good condition to take advantage of business opportunities without exposing yourself to excessive risk. A tractor appraisal helps you be aware of what you have available for collateral for a new expansion loan, which tractors may need to be replaced sooner rather than later and how much a tractor is worth if you're facing an insurance claim or court case. Make sure you work with a certified equipment appraiser who has experience in the trucking industry to ensure you're getting the right value for your records.

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Tags: truck appraisals, trucking companies

Valuing a Semi Part 2: Trailer Appraisal

Posted by Equipment Appraisal Services on Tue, Apr 26, 2016 @ 10:30 AM

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In the first part of this series, we looked at the truck appraisal end of a tractor trailer. But what about trailer appraisal? What does an equipment appraiser look for when determining equipment values in standard, flatbed or reefer trailers? By knowing what is taken into consideration during equipment appraisals, it's much easier to make sure the process goes quickly and smoothly. Here's what is usually looked at when a trailer is appraised:

Valuing a Semi Part 2: Trailer Appraisal

  • Where are the logs? An equipment appraiser will want to take a good look at repair and maintenance logs, especially on refrigerated trailers and other types that have high-maintenance systems on board. But even on standard trailers, there should be some documentation on the tires, the maintenance that has been done on mechanical systems such as the brakes and similar concerns. Having documentation of these tasks, whether as a log book or a collection of receipts, will show that the trailer has been kept in good condition.
  • What is the condition? A trailer that has been well maintained will always have a higher valuation than one that has been poorly kept. Why? A trailer that is poorly kept will often fail faster than well kept counterparts. This can have a drastic effect on the value, especially if there appears to be problems with key systems on the trailer.
  • Kick the tires. Replacing trailer tires can be an expensive proposition, so newer tires or retreads can help boost the valuation of your trailer. But even beyond tread depth, what kind of condition are the tires themselves in? Are there cracks or signs of damage to the sidewalls? Tires in good repair and with decent tread left will help improve your trailer's overall valuation and are another sign of good maintenance of the entire unit.
  • Over the top wear and tear. Though we've been talking about signs that a trailer has been well maintained, now we're going to look at the other end of the spectrum. A trailer that has been abused will often have a much shorter expected life cycle, lowering its appraised value drastically. This can show up in terms of serious dents, bends in the frame, poorly made repairs, failing refrigeration units, worn or damaged tires, worn or failing brake systems and other areas where the condition indicates abuse and poor maintenance.
  • Special features. This will depend specifically on the type of trailer that you're having appraised. It can include the cooling unit on a reefer trailer, heavy brakes on nine axle trailers, scrapes or dents on the bottom of a low boy or any other numerous features for non-standard trailers. As with the other features mentioned above, having these features in good condition with evidence of regular maintenance will boost the value, while signs of abuse or excessive wear will decrease the value.

By having a grasp of what will happen during a trailer appraisal, you can use your equipment in a way that protects the equipment values in the long run. If you didn't have a chance to read the first part of this series dealing with semi tractors, please take a look now and you'll know exactly what to expect from the entire machinery valuation process.

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Tags: truck appraisals, trailer appraisal

Valuing a Semi Part 1: Truck Appraisals

Posted by Equipment Appraisal Services on Tue, Apr 19, 2016 @ 11:00 AM

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When you run a big rig and need to have a truck appraisals conducted, how do you know what will come into consideration during the process? Knowing what the equipment appraiser is looking for helps you know how to judge equipment values, whether you're considering making a new purchase or figuring out when to upgrade from your old standby. Here are a few things to keep in mind when having your semi tractor appraised:

Valuing a Semi Part 1: Truck Appraisals

  • Show us the paper. Though it seems like it wouldn't have as much to do with your truck's machinery valuation, having proof of maintenance and repairs is vital to the process. Whether you keep a regular maintenance and repair log, have an envelope with all the repair receipts in it or can get a copy of the records from the shop you always use, documentation helps prove good care of your truck.
  • In good condition. Though it's normal to have some average wear and tear on your truck, it should show that it has been keep up, whether that's through regular washing, a clean interior or an engine compartment that is well kept and in good repair. Much like documentation, this step also proves that your truck has been well maintained.
  • Mileage matches wear. Though most people wouldn't dream of messing with the odometer, some shady shops will try to tamper with it to gain a few dollars in the sale price. Equipment appraisals will take a good look at the wear and tear of the entire vehicle, and if it appears to have much more wear and tear than the odometer would support, you may want to have documentation on hand in the form of mileage logs or similar paperwork to back up your claim. Excessive wear is often related to early failure of a variety of systems, lowering the final appraised value.
  • Free from signs of abuse. Much like the mileage concern above, this step is to ensure that the truck will continue to operate for an expected period of time. Abuse can include repairs that have not been seen to, too much play in steering, suspension, brakes and similar systems, poorly made repairs, cracks or dents, bends in the frame and similar concerns. Trucks that have been hard used and not cared for often have much earlier failure rates than trucks that have been well maintained.
  • Manufacturer-added or -approved features. Everyone can buy a basic truck, but one that has a few more bells and whistles will demand a higher price in the market, which is reflected in the appraised value. But what about additions that were manufactured by third parties or part of customization outside the manufacturer's specifications? You may actually end up lowering your truck's value. Why? If a feature was added that causes additional wear and tear on a particular system or circumvents a safety feature, it can actually cause the truck to fail sooner instead of adding value to a normal life cycle.

Knowing what to expect during a machine appraisal helps you get through the process quickly and easily by allowing you to have everything you need on hand and accessible for the process. But now that you know what to expect in truck appraisals, what about the trailer? Tune in next time for the second part of this series, dealing with trailer appraisals, and don't forget to contact us for all your appraisal needs.

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Tags: equipment appraisers, truck appraisals

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