Unlock the Value of Used Equipment: How Effective Remarketing Can Maximize Your Return!

Apr 4, 2024

In the dynamic world of equipment financing, leasing, and lending, institutions are continually managing the lifecycle of assets that serve diverse industries. When assets reach the end of their lease or loan terms or are repossessed, equipment finance companies may find themselves with a surplus of used equipment. Remarketing equipment such as semi-trucks, tractors, and or medical equipment presents a significant opportunity to optimize returns and is a crucial aspect of managing assets efficiently. I want to explore the significance of remarketing equipment for equipment finance companies and offer strategies to maximize their returns.

The Significance of Remarketing Equipment for Your Company:

Equipment finance companies play a pivotal role in supporting businesses across all industries. Their financing solutions enable companies to acquire essential equipment for growth and innovation. However, managing the equipment coming in at the end of a lease, loan or from repossession poses unique challenges. Remarketing offers several important advantages for equipment finance companies:

Cost Recovery: Remarketing allows equipment finance companies to recover a substantial portion of their investment in leased or financed assets. This recovered capital can be reinvested to support new financing opportunities or to enhance the financial stability of the institution.

Reduced Holding Costs: Equipment held in inventory comes with associated costs such as storage, maintenance, and insurance. By remarketing assets efficiently and effectively, finance companies can reduce these holding costs and maximize their returns.

Market Insight: Remarketing provides valuable insights into market demand and asset depreciation rates, which can inform financing terms for future agreements.

Sustainability: By reselling equipment, finance companies contribute to environmental sustainability by reducing waste and aligning it with modern corporate social responsibility initiatives.

Strategies to Get the Most Money from Reselling Equipment:

Comprehensive Asset Evaluation: Start by conducting a thorough assessment of the inventory. Gather data on the equipment’s condition, age, and market value. This information is vital for informed decision-making.

Market Research: Stay informed about market conditions and demand for specific types of equipment. This knowledge will help you set competitive prices and plan effective sales strategies.

Data Management: For equipment with data-sensitive components, ensure that all data is securely wiped to protect sensitive information. Compliance with data privacy laws is critical.

Professional Appraisal: Consider engaging professional appraisers to determine the fair market value of equipment. Accurate valuations are invaluable for setting appropriate prices.

Repair and Refurbishment: In some cases, refurbishing equipment before reselling can increase its value. Replace worn components, perform maintenance, and ensure the equipment is aesthetically appealing.

Multi-Channel Sales: Utilize various sales channels. Diverse channels cater to different audiences, broadening the potential buyer base.

Transparent Marketing: Provide detailed information about the equipment to potential buyers. High-quality images, specifications, and any warranty information should be included. Transparency builds trust and enhances the likelihood of a sale.

Negotiation Flexibility: Be open to negotiating prices with potential buyers, particularly when dealing with larger equipment lots. Flexibility can expedite sales and potentially lead to higher returns.

Legal and Regulatory Compliance: Ensure that your remarketing process adheres to all relevant legal and regulatory requirements. This includes proper documentation of ownership transfer, tax considerations, and warranties, if applicable.

Educational Marketing: Educate potential buyers about the cost-saving benefits of purchasing used equipment from reputable finance companies. Highlight the quality and reliability of the assets you’re selling.

If maximizing your return on investment is critical, then efficiently and effectively remarketing your equipment is the answer.  If your internal team does not have the experience or bandwidth to follow the steps I have outlined above, then find a partner who can help.  Be sure that any partner you choose has a proven record of success remarketing the type of equipment you have and that they follow a similar process.

With 1400+ Five-Star Google Reviews (As of April 2024), our team at Dedicated Financial GBC continues to set the bar in asset management services. If you’re interested in getting in touch with me to learn more about how we can service you, I encourage you to send me an email at jcastello@dedicatedgbc.com

-Joe Castello 
Collections Manager
Dedicated Financial GBC

Do you want to learn more about working with our team at Dedicated? Let’s get in touch!