Used Equipment Prices Continue to Decline
The Rouse Value Index for used equipment prices decreased less than one percent in October compared to September, according to the November Rouse Rental Report. However, the 0.6% decline follows five consecutive months of price slippage, driven by weaker auction recoveries, the report states.
Though prices in 2015 showed some softening, the October Rouse Value Index remains 4.0% higher than the prior peak of 43.3 in April 2007. The index remains significantly higher - 51.7% - than the June 2009 trough of 29.7. The Rouse Vallue Index measures the average Ordely Liquidation Values for benchmark models across 14 major rental category indices. You can find a pdf of the company's November newsletter here.
The Rouse Forced Liquidation Values for October showed auction sales of rental and construction equipment tracked by Rouse averaged 5.1% lower September. The data, from the sales of 3,716 units at 31 separate auctions, shows a seventh consecutive month of declining auction recovers. Rouse cited three reasons for the ongoing decline: relative year0over-year increase in volumen, "heavier use" equipment coming out of the oil and gas markets, and weaker international demand combined with a stronger U.S. dollar.
In August, the report says, achieved rental rates increased 0.2%, based on the company's data. Rates are up 0.3% compared to August 2014 and up 26% compared to January of 2011.
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