Did you know…
MagikMe Equipment has multiple analyst teams. Our sole focus and dedication is to ensure the data you’re accessing is up to date, fully attained, completely legitimate, and beyond. MagikMe Equipment analysts keep the show on the road for everyone who uses the app (including ourselves!). Thanks to recent research by our Values analysts, we recently upgraded all regional adjustment data within the Values & Market Data tool. You may be asking yourself, “What does this mean?” It means not only are we able to continue providing our customers with the industry’s most accurate heavy equipment valuations, we just majorly improved upon it.
What are regional adjustments again?
Need a refresher? No problem.
Regional adjustments take into account locations where equipment is listed. They are used to adjust OLVs, FMVs and FLVs calculated using our ValueTrend Engine (see images below). Regions include 12 provinces in Canada, 50 US states and Washington, D.C. Since the last update we have added 24 subtypes.
Why our regional adjustment data is different.
Our largest competitors may offer valuation data, but they do NOT have valuation models that go beyond data based on national rates. If market data powers your valuation tool and you aren’t getting a state or province level adjustment, you’re not getting the whole picture on your assets. That’s where MagikMe Equipment differs.
Stats you may find interesting.
Now that you understand how important regional adjustments are, let’s examine how they have changed in our most recent update. Through research and comparison, our analysts cited these findings as particularly interesting. Since they intrigued us, we thought you might feel the same.
- Positive Regional Adjustments:
Most loaders had a positive percent increase. Based on our research, we believe this is because loaders tend to be used in residential and commercial construction, and they are more valuable regionally. An increase in Southeastern state construction activity contributed to positive increases in regional adjustments for loaders.
- Negative Regional Adjustments:
Excavators displayed large decreases. In particular, crawler mounted hydraulic excavators in Alaska and South Dakota displayed large negative regional adjustments. Based on our research, we believe it’s possible lower-than-average oil prices plus the oil downturn from a few years ago is still affecting FMVs in some oil-producing states.
- Flat Regional Adjustments:
About 66% of all regional adjustments were between -1% and 1%, indicating relatively flat changes. Noticeably, lift equipment regional adjustments changed very little. National rental houses are the largest owners of lift equipment, which are less influenced by prices at the regional level because they purchase equipment in large quantities from dealers across the country.
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More posts to come about our values. Stay tuned!
Best regards,
Daniel Rosales
Industry Analyst
[email protected]
