What is the Valuation of Transportation Equipment?

What is the audit of fixed assets

Many companies have machinery that is used to transport people or the material that is used in the industry, whether for construction or the transport of goods, and it is important that this type of machinery is kept in good condition so that It can be used consistently and correctly over a long period of time. 

Due to financial instability, it is important that companies, corporations, financial institutions and other organizations have a precise and exact value of their assets, whether they are machines and equipment, this is also due to the market dynamics which is constantly changing due to Therefore, companies should consider the idea of carrying out a valuation of their assets on a constant basis.

What is the purpose of the transportation equipment valuation?

The main purpose of making a transportation equipment valuation It is to know, through an opinion, the monetary value of this and the state in which the equipment is located, based on the useful life of the machinery that is being valued. 

As part of business decisions, the purpose for which an appraisal of transport equipment is carried out may be because the equipment is to be auctioned, insured, to carry out a control of fixed assets, request a loan in case of seeking to acquire more team, to be included in a business plan, among other reasons.

What aspects does an appraisal of transportation equipment consider?

The aspects to consider about an appraisal of transport equipment are:

  • They can be used as a strong bargaining tool.
  • Three types of values can be issued, low, medium and high.
  • Define value margins 
  • Adjust insurable values
  • They are auxiliary for tax purposes
  • Prevent potential litigation

The inspection of the bodywork, the state of the upholstery, paint and moldings, the mileage that has been traveled, the state in which it is find the engine and dash. 

What factors affect the value of equipment?

Throughout its useful life, the equipment has wear and tear due to age, physical condition and obsolescence; at the end of its accounting useful life, the equipment is fully depreciated in books but still has a value given that it continues to operate and generate cash flows.

When you have an appraisal of a vehicle in these conditions, it is feasible to make the decision to keep the vehicle for an additional period of time or make the decision to replace it.

Some types of transport equipment

  • Farm Equipment 

This type of transport includes all those used to carry out agricultural activities, such as vans, tractors, trucks, boats, carts, among others. 

  • loading machinery

Those means of transport that are used to move products or merchandise from one place to another. 

  • private transport 

These vehicles can be hired by people and are not for public use. 

  • commercial transport 

These means are used to transport both goods and people, so it must be kept in good condition. 

  • passenger transport

The type of machinery that is valued can include aircraft, ships, boats, light aircraft, buses, and seeks to verify the condition of each piece of equipment for the safety of passengers. 

It is important that this type of valuation is carried out to obtain insurance and in case the car wishes to be sold, in addition the cost of the vehicle can be found within the Blue Book, which provides the user with the market price of a car.

At ANEPSA we can help you with an appraisal of transport equipment or any other type, leave us your data.

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