Posted 2011-02-14 8:24 AM (#130240 - in reply to #130236) Subject: RE: Trailer Depreciation?
Elite Veteran
Posts: 720
You can calculate many kinds of formulas. But the first one is "who is going to buy it used?". That is a BIG trailer, and I think that will eliminate many potential buyers. Basic economics says fewer or less demand = lower price. Look at all of the "repo" trailers advertised that are 3-5 years old. None of them are the nice 8-10' sw 3H that it seems everyone wants. They are big ol monstors- and still looking for homes at 50-60% of new.
Posted 2011-02-14 10:48 AM (#130248 - in reply to #130236) Subject: RE: Trailer Depreciation?
Expert
Posts: 5870 Location: western PA
H1 has it right. "Who's going to buy it used?". The value of a trailer is all about supply and demand. Many mega trailers can loose half their value in only a few years of ownership. This type of trailer appeals to a relatively small population and has a limited market for resale. Their initial depreciations can exceed the outright costs, of the more popular trailers being sold in larger numbers.
These less opulent trailers can hold half of their original value and more, over a decade or so. These will be of many brand names of good quality, with layouts that are popular to many owners. Three horse slant loads, with LQs from 7'-14' are widly favoured.
After a decade of use, their values are mostly determined by their condition, vary rarely their age. As a result, a well kept older trailer will maintain its value, and depreciate further only marginally. Many owners have been able to sell their used aluminum trailers for what they originally paid for them, after many years of ownership.
Some of the older trailers are in such good condition, that their owners are installing upgraded LQ's and options, instead of placing a new purchase order.
Just as with most products, the original purchaser takes the hit on the initial depreciation. A well bought used trailer is an excellent investment.
Trailer Depreciation?
