How to get the correct value of a construction machine?
The way to look for prices on the Internet misdirects. Sellers often use price quotes to test the market. Experienced valuers use various tools to determine the value of a machine. New price, depreciation, demand, operating hours and condition play an important role. Access to historical sales prices and auction results are important. Not to forget, the current cost to find an equivalent machine. We are experts in construction machinery valuation.
When is a valuation required?
A determination of the value of construction machinery is required for financial reporting purposes or when companies are involved in mergers, acquisitions, or business sales. Insurance companies require asset valuations to determine the appropriate coverage and premiums. In cases of bankruptcy or insolvency, assets need to be valued to determine the value available for creditors or potential buyers. During legal disputes or litigation, asset valuations may be necessary to determine the value of assets involved in the dispute.
Who may evaluate heavy machinery in the United Kingdom?
There is no legal requirement in the UK as to who may carry out the valuation of capital goods. Therefore, for the sake of credibility and acceptance of the valuation, it is recommended to choose an expert or appraiser who has the necessary knowledge and experience.
Our background as valuators or appraisers
Mevas-UK is the local English office of Mevas construction machinery appraisals in Germany. Mevas has been operating as a technical surveyor and valuer since 2006. We look back on numerous appraisals for German and international companies and investors. We can refer to projects with up to 180 machines in the construction and mining sector. Among others, we have appraised large machinery in the mining sector in Congo and machinery from construction projects in Qatar. In Germany, we regularly provide appraisals for complete fleets in construction companies. Some time ago we inspected 120 machines of Manchester-Waste-Recycling for a Merger with Suez.
How much does a heavy machinery valuation cost?
There are different levels of evaluation. The simplest is an online assessment according to data. Depending on the scope and requirement, this can be done for as little as £200. If documentation is required for litigation or the court, the price increases significantly. For the cases mentioned above, such as mergers, bankruptcy, sale of a company, annual report, financial planning or insurance of a fleet of machines, a different model comes into play. Here the inspection of the machines is done in a shortened form and much more attention is paid to the determination of the current value. We will be happy to calculate the costs for this once we have received your list of machines.
Is an online-valuation for heavy machinery possible?
In many simple cases, you will not need a comprehensive expert opinion to determine the value of a machine. If it is not a court case or a legal dispute, if you do not need the correct time value for the tax office, you can also work with an online assessment. We at Mevas offer such machinery online valuation through our international site for a fee of just 50£. With some basic information about the construction machine, we determine the current value. It is a professional valuation service of construction & mining machinery.
Appraising construction equipment requires a detailed, methodical approach to ensure an accurate and fair valuation. Here are the best practices an appraiser should follow when valuing these types of assets:
How should an appraiser of construction equipment proceed when valuing assets? What is the best practice?
🔍 1. Understand the Purpose of the Appraisal
Determine the reason for the appraisal—this will affect the method used. Common purposes include:
- Sale or purchase
- Financing or collateral valuation
- Insurance
- Tax reporting
- Litigation or disputes
- Asset management or liquidation
Each use may call for a different value definition (e.g., fair market value, orderly liquidation value, forced liquidation value, etc.).
🧾 2. Gather Key Equipment Information
Document all relevant details about each piece of equipment:
- Make, model, and year
- Serial/VIN numbers
- Hour/mileage readings
- Condition (cosmetic and functional)
- Maintenance and service history
- Attachments or customizations
- Ownership/title status
- Location and accessibility
📊 3. Choose the Appropriate Valuation Method
The three main approaches are:
a. Sales Comparison Approach
- Most commonly used and reliable.
- Compares the subject equipment with recent sales of similar equipment.
- Adjusts for differences in age, condition, usage, and features.
b. Cost Approach
- Estimates replacement or reproduction cost new, then deducts for depreciation.
- Useful for newer, specialized, or rarely traded items.
c. Income Approach
- Based on the future income the equipment is expected to generate.
- Rarely used unless the equipment is leased or part of an income-producing operation.
🔧 4. Inspect the Equipment (When Possible)
- A physical inspection helps determine true condition and usage.
- Take photographs and note any wear, damage, or modifications.
- If an inspection isn’t possible, rely on maintenance records, usage logs, and interviews.
📚 5. Use Reliable Data Sources
Valuation data should come from trustworthy sources:
- Industry-specific resale databases (e.g., Ritchie Bros, IronPlanet, MachineryTrader)
- Auction results
- Manufacturer price lists
- Dealer quotes
- Historical sales trends
📈 6. Apply Adjustments and Depreciation
- Adjust for usage (hours/miles), age, and condition.
- Factor in economic obsolescence (tech changes or demand shifts).
- Include transportation, setup, or dismantling costs if relevant.
🖊️ 7. Document the Process Thoroughly
The appraisal report should include:
- Scope and purpose
- Methodology used
- Equipment descriptions
- Data sources
- Assumptions and limiting conditions
- Final opinion of value
Is there a German website for heavy machinery valuation available?
Yes it is. Have a look at Mevas-Germany