Used Equipment Prices Continue Decline
Used equipment prices slipped downward for the seventh consecutive month, according to the Rouse Rental Report. The November Rouse Value Index for used equipment prices decreased to 44.5, down 1.2% from October values.
The declines primarily are driven by weaker recoveries observed in auction transactions. Though weaker over the past several months, the November Rouse Value Index remains 2.8% higher than the prior peak period of 43.3 in April 2007 and 49.9% higher than the prior trough period of 29.7 in June 2009. You can find a pdf of the report here.
The report also noted that November auction sales of rental and construction equipment averaged 8.7% lower than Rouse October Forced Liquidation Value numbers. This is the eighth consecutive month of declining auction recoveries, the report states. Rouse recorded 2,562 units that sold at 24 separate auction sales across North America. The units represented a combined FLV (as of October 31st) of $73.6 million and generated $67.2 million of gross auction proceeds.
On the bright side, achieved rental rates notched a 0.2% increase for the rental companies participating in the Rouse Analytics Rental Metrics Benchmark Service.
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