HOW TO CALCULATE TM worth

[Jimmy L]

My insurance man wants a figure for value of my truck and machine.
Replacement value is not an option but current value.

Is there a formula for this?

I can get the blue book price for the van but what about the machine?

 

[Bob Foster]

Go to eBay and look at past sold items of units and from there you should be able to dial it in.

 

[Jimmy L]

I was thinking that there was some more exact formula to it than just comparing whats for sale?

 

[bob vawter]

Ebay will NOT give a fair evaluation...i hear it's full a crooks and shyster shill bidders.......!

 

[John Olson]

Call me and id be happy to
write up the value for you.
more the one bank and many insurance companies call me for market value

 

[A. wilson]

Blue book on the van and figure how long the mount should last under normal circumstances and divide the new cost of that into the life expectancy. Just as a guess, as usable life/value of an air-cooled tm might be 5 to 7 years, and a pto 8 to 10.

 

[Farenheit251]

A couple times when I bought a new machine I've looked at insurance. I don't think the actuaries have any idea of the risk factors and just price it high. In 16 years what I have saved and invested could probably buy 2 new truckmounts. Short of a full out fire it is hard to hurt the machine in a crash. On my pto the insurance wouldn't cover removal and reinstall which could be $5000. Look at the numbers closely and consider if you can self insure. Not like I could wait around and deal w/ insurance if I was down. My customers that need service are more valuable than the machine.
Actually if I ever got in an accident bad enough to severely damage the TM it would be unlikely I'd be able to clean again.

 

[Kelly]

Too bad there isnt such a thing as a used carpet cleaning equipment blue book that assigns values with out personal opinion being involved. In the past I have found that if you multiply the hours on a slide in by 60 you get the approximate mileage. So 2000 hours would pretty much equal out to be 120,000 miles. A cds unit is a little differant than a slide in so use the number 45 instead of 60 because the cds machines usually run at a lower rpm. Next consider what kind of machine it is to begin with, we all know that there is a difference in machinery. Do yourself a favour and never let anyone give you a phone quote on value.... like they are right there standing in front of your machine. ttfn

 

[GRHeacock]

My opinion- depreciate at 10% of the original price per year- for an average.

But for insurance reasons, I would have full replacement value.

If your machine gets wrecked, or stolen, you would want a new machine.

Well- I would.

Gary

 

[packfancjh]

A few people in the TM manufacturing side go by the rule of 10% out the door and 10% for every year owned after sale.

 

[XTREME1]

I put a fixed number on equipment and valued each myself and paid maybe $100 extra in my premium

 

[Jack May]

I always get 'agreed pricing' and then take that to my broker to shop around for me. I usually find that most years he'll be able to offset premium increases by shopping and usually get better coverage for the same dollars.

The main reason I go with agreed value is the fact that I find it costs 10k to fit out a vehicle. Water proofing/rust proofing of the floor, carpeting all surfaces, shelving, install etc. That way I can specify what I get covered for.

Like Gary says, if it got written off or stolen, partiularly if it was an older machine, I don't want to be in the position of having a payout of $2500 in my pocket and no machine. Downunder, there isn't a ready supply of second hand machines so more than likely I'd need to consider a new machine and $2500 won't buy anything here. A 'baby' machine like Legend XL, PowerClean Liberty, HM 421 etc START at $30k and upwards.

John