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| Hi all. I am having trouble figuring something out here about a dealership pricing equipment, so I'll ask you what your thoughts are.
A hypothetical dealer has taken in on trade a large piece of equipment. The size and price limit its market locally. It has been sitting on the lot for a year now and has not moved once. Not even to relocate it to a different area of the lot. It has not even been rented out. It had a price in 08' of "X". No lookers or interest in the machine, yet for 09' the price is up a couple percent. ??
Now, I have hypothetically talked to this hypothetical dealer in the past a few times and have been told that I needed to make up my mind on the used piece of eq I was looking into, because after the first of the year, it was going up 5-8%. ??
So my question is, is this a common practice to increase the price of a used piece of equipment annually? Each year it is a year older and should book for less, not more IMO. What am I missing?
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Equipment dealer, business question.
