Transportation Equipment Valuation



Transportation Equipment

Transportation equipment is a very important part for companies that are dedicated to the transportation of large loads, whether of materials or to move goods from a person or another company, which is why this equipment is in the best condition. possible is essential.

This equipment is considered assets within companies, which is why in the event of any economic emergency that arises, the company knows its value, carrying out a valuation of transportation equipment.

What is the purpose of the Transportation Equipment Valuation?

This valuation has 2 main purposes, the first is that the owner, whether a single person or a company, can know the real economic value, as well as the state in which the equipment is located. With this state report, the owner can Know if your equipment needs any repairs that you may not have realized.

The second is that the owner of the equipment, having the knowledge of value, can decide to use his transportation equipment in different situations such as: purchase - sale, in an audit, to be able to request a credit, in transfers or control of assets. , add it to a business plan, among others.

What are the methods used in the Valuation of Transportation Equipment?


Market: In this method, you search within the market for equipment that shares the same characteristics to which the valuation will be made, and based on this information, the real economic value can be reached more quickly.

Costs: Here the valuation will have to be done based on the price at which the transport equipment was acquired.   

Income: Here the team that values will be represented by the value it has in the market, this for the buy-sell option.

What aspects are taken into account when carrying out one of these valuations?

  • Equipment useful life (km traveled)
  • Bodywork
  • Upholstery
  • Paint
  • Engine status
  • Board status
  • Depreciation
  • The possibility of being used within a negotiation
  • Help prevent litigation
  • State-of-the-art and best-equipped transportation equipment

What are the aspects that lower the value of equipment?

The main reasons why the value of equipment decreases is its useful life and becoming obsolete. In the first, the physical condition is greatly affected, since the bodywork commonly suffers scratches or dents that, even if they are repaired, still affect the value, other parts that suffer wear are the engine and everything internal. A piece of equipment becomes obsolete after a certain time because new equipment is coming onto the market, and consequently these new equipment will work and perform more than the old models.

Although the depreciation of the equipment causes its economic value to drop considerably in the books, they continue to be given a small value, this is because they continue to generate money for the company, but the most ideal is for the owners to consider renewing their equipment. equipment that they have in those conditions.

Transportation Equipment that falls within this valuation

  • Trucks (trucks, passengers, concrete mixers, dump trucks)
  • Vans
  • Cars
  • Cargo Transportation Equipment
  • Railways
  • Cranes
  • Train (road, freight)
  • Boats
  • Bodies
  • Trailers
  • Aerospace equipment
  • food trucks
  • Gondolas

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