Transportation Equipment Valuation
Transportation Equipment Valuation
It is very common to face having to carry out the valuation of transport equipment, whether they are cars, vans, trucks, classic cars, utility vehicles, motorcycles, that is, vehicles that use fossil fuels, this is because it is important to know life useful they have.
It is important to know that Thanks to globalization, the Paris agreements and actions aimed at combating climate change, the world is moving towards using renewable energy, so in the coming years gasoline-powered vehicles will gradually disappear, giving way to vehicles electric powered by hydrogen cells.
What type of transportation equipment and vehicles can be appraised?
The transportation equipment that may correspond to an appraisal for different purposes and for different types of transportation equipment such as passengers, cargo vehicles, cranes, trucks, fleets, etc. Other examples:
- Redilas trucks
- Passenger Trucks
- Concrete Mixer Trucks
- dump trucks
- Cars and trucks (Sedan, Compact, Hatchback, SUV, Motorhome, Pick Up, Camper, Crossover)
- Cargo Transportation Equipment
- Food Trucks
- Hydraulic Cranes
- Car carrier
- tractor trucks
- Cargo train
- Road Train
What aspects are taken into account for the valuation of these equipment?
For the purposes of an appraisal of transportation equipment, the first thing to take into account is the equipment useful life, it is considered that this has a useful life total of 240,000 km, annually 24,000 km, which in practical terms means that a vehicle has a useful life of 10 years for purposes of depreciation.
In addition to the physical condition, the mileage is a fundamental variable to determine the commercial value of the vehicle, since it reflects its depreciation with respect to its age and useful life. In this case, the mileage of our subject is compared against the mileage of the references. of market and a factor is obtained that rewards or punishes the market values of the references, together with the demerit of physical condition.
There is a lot of talk about vehicle manufacturers planning “planned obsolescence“, this in order to encourage users to buy new models, which increases innovation and improvement in the equipment of the latest generation vehicles.
What types of depreciation are applicable to this equipment?
Usually, the method used to estimate the commercial value of a car is the market method, that is, finding values of similar or substitute cars to standardize them in terms of mileage, physical condition and year of manufacture. A straight-line depreciation is used.
There are other depreciation methods that consider less wear and tear on assets at the beginning of their useful life and as time passes, depreciation accelerates towards the end of their useful life, which reflects the dynamic behavior of the vehicle's performance.
What are Transportation Equipment Appraisals?
The valuation of a car is essential to know its current value, which is used for strategic purposes or financial knowledge, also to buy, sell or insure the car, the types of car classifications that can be valued correspond to the following categories :
What is the valuation process for automobile parts and components?
Within the process of Valuation of a car in its parts and components, it is carried out through a physical inspection, in a checklist the qualification parameters are detailed to grant the value to it, as well as reviewing the state in which all its components are found. , which will help to more accurately determine the value of the equipment.
This checklist for the valuation of a car includes a review of the condition of the parts and components of the car such as:
- Type of Invoices
- Number of Owners
- Maintenance (Maintenance Costs)
When obtaining the information for the valuation of a car, the values are issued through the delivery of the appraisal signed by the appraiser.