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Rouse: OLVs and FLVs Continue Downward Trend in February

April 01, 2016, 07:00 AM
Filed Under: Rental News

The February Rouse Value Index™ for used equipment prices decreased to 43.6, down 0.7% from January values. The decrease is now the tenth consecutive month of declines, primarily driven by weaker recoveries observed in auction transactions. While there has been softness throughout much of 2015 and into 2016, the February 2016 Rouse Value Index™ remains 0.6% higher than the prior peak period of 43.3 in April 2007 and 46.8% 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.

February auction sales of rental and construction equipment tracked by Rouse averaged 4.3% lower than Rouse January FLV values on seasonally high volume due to the large Orlando auctions. Units sold in February (5,775 units sold at 23 separate auction sales) represented a combined FLV (as of January 31st) of $244.4 million and generated $233.9 million of gross auction proceeds. There was a 6.3 percentage point spread between categories of equipment prevalent in equipment rental fleets (e.g., small- and mid-sized earth moving 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 equipment rental fleets averaged only 0.1% lower than January FLV values.

Read the full March 2016 Rouse Rental Report.

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