Construction machinery market has gained a lot of popularity in recent years. Many joint-stock excavators have entered the Chinese market, making used excavators less popular amongst contractors. The domestic market of new excavators has entered growth stage, while used excavators market is still in early stage.
There is a growing need to develop new methods to regulate used excavators market. Qualified trading rules will not only help to take it out from its disoriented state, but will also help to maintain interest of both parties. Currently, the price of used excavators is evaluated by comparing its type, status and service life period with the recently sold excavators. This method of evaluation requires the estimators to have in-depth market knowledge to estimate the price correctly. Although this method is widely used, there are some pressing questions that need to be answered-does the evaluation have a certain scientific basis? Can both parties accept the basis? – to cater both the parties fairly.
Another method is to compare the price of old excavators with the price of same kind of new excavators in the market. This method takes into account all the issues that can influence the value of used excavators - the service life period, working hours, actual usage situation, long term working conditions, nature of work etc. Although this method of evaluating excavators has a more complicated interoperability, it generates much more accurate results. The formula to calculate the price of used excavator through this method is : ‘Use Value of used excavators’ equals ‘Reset Price’ times ‘Used value rate’ times ‘Integrated debugging coefficient’(Use Value=reset price*Used value rate*Integrated debugging coefficient). When excavators have been used till its specified working hours, it still has a certain use value; therefore, the use value rate cannot be less than ten percent. The integrated debugging coefficient shows different prices of different brands of excavators. The use cost of every service stage of an excavator is not the same, and the best usage stage of a new excavator is in the early period. With time, the depreciation amount gets smaller, and different customers perceive the value of used excavators brand differently. Hence, to make the evaluated price of used excavators to have better credibility, the integrated debugging coefficient should be amended. However, the modification can only be done efficiently if everyone involved has an extensive understanding about the subject.
We hope that this blog would give you a better idea in understanding about the market of used excavators, and also to evaluate their price efficiently.
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