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Rouse: Rental Equipment OLVs and FLVs Decline in January

March 03, 2016, 07:19 AM
Filed Under: Rental News

The January Rouse Value Index™ for used equipment prices decreased to 43.9, down 0.7% from December values. The decrease is now the ninth consecutive month of declines primarily driven by weaker recoveries observed in auction transactions. While there was some softness throughout much of 2015, the January Rouse Value Index™ remains 1.3% higher than the prior peak period of 43.3 in April 2007 and 47.8% higher than the prior trough period of 29.7 in June 2009. The Rouse Value Index™ measures the average Orderly Liquidation Values for benchmark models across fourteen major rental category indices on a monthly basis.

January auction sales of rental and construction equipment tracked by Rouse averaged 7.6% lower than Rouse December FLV values, albeit on seasonally low volume. In the month of January, Rouse recorded 1,124 units that sold at 17 separate auction sales conducted across North America. The units represented a combined FLV (as of December 31st) of $23.8 million and generated $22.0 million of gross auction proceeds. It is noteworthy that there was a 5.2 percentage point spread between categories of equipment prevalent in North American equipment rental fleets (e.g., small- and mid-sized earth moving equipment, telehandlers and aerial equipment)
compared to those not commonly found in rental fleets (e.g., large earth moving and mining equipment). Categories of equipment prevalent in North American equipment rental fleets averaged only 4.4% lower than December FLV values.

Read the full Rouse Rental Report - February 2016.

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