Residual Value represents the worth of a piece of equipment at the end of a given term (e.g. multi-year lease or useful life).
A high residual value generally shows that a machine has been successful at the work demanded of it, has presented minimal maintenance issues over its service life, and still presents a high value to buyers on the resale market. Each of these machines represents quality and gives buyers confidence in their investment on both the new equipment and equipment resale/auction markets.
EquipmentWatch residual values are an estimate of the retained value of an asset, given a purchase price, FMV, or FLV, based on value adjustments and expected annual usage. These values are based on historical depreciation rates and are set according to today’s dollars. They do not include any inflation factors or additional forecasting measures.