Resale vs. Auction

Sometimes we’re asked the hard questions, such as “Why should I use you when I can sell my used units at auction?”
Is resale or auction the way to sell a heavy-duty truck?
Online resale of heavy-duty vehicles, capture much better prices than the same units do in auction.
The difference between selling at retail and auction is very significant.
Here’s some interesting information from Truck Blue Book that will help you with your understanding of how heavy duty units are sold.
The average 2013 model sells at resale retail for 69% of its original value, and in auction it only gets 54%.
And, 2010 model sells at resale retail for 58% of its original value, while the same unit at auction garners only 31%.
So, what’s the big takeaway? Your dealers will do much better using CTT to sell their used trucks than they will at auction, regardless of the age of the truck.
Let’s discuss equipment. Why is it better to use rather than auction your pieces?
We’re beginning to experience an interesting phenomenon in equipment sales that is exacerbating the pricing disparities between resale and auction.
Right now, the average age of most construction equipment pieces in auction are 30% older than are the pieces on resale sites, such as ETOL.
In other words, contractors who go to auction oftentimes have to settle for pieces that are much older than the used equipment for resale on portals.
And, this year will be the start of a tough few years for construction equipment auctions, as the recession models for construction equipment (those built during 2007 through 2012) were not produced at a large volume.
What that means for you is that dealers that sell used equipment will enjoy increased demand for their equipment, and can capture better prices on ETOL than they ever could at auction. AND, auctions simply will not have the units, so portals such as ours will become more of the marketplace for these units.

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