Know the Value: Taking the Guesswork out of Residuals

Jason Keller

After years of service in providing current equipment valuations in the form of appraisals in support of lending facilities and remarketing support for rental companies, contractors, and dealers, Rouse now also offers residual values.

By leveraging its vast pool of equipment fleet and sales transactions, Rouse delivers estimated residual values via a customer-facing self-service portal across a wide range of equipment including aerial work platforms, telehandlers, heavy earthmoving, cranes, trucks, and trailers.

Rouse collects over $20 billion in new and used equipment sales transactions annually and, by leaning on historical sales observations, generates estimated residual values for equipment up to eight years into the future.

Making intelligent underwriting decisions

The tool set is ideal for lease finance institutions who are looking for a single source that arms them with all the information they need to make intelligent underwriting decisions. Likewise, for equipment owners, this tool serves as a reliable source of market intelligence for assessing fleet management decisions.

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Rouse provides its users with access to asset-specific values that consider the key factors to valuation, including:

• Product type characteristics
  • Manufacturer,
  • Specific models, and
  • Year of manufacture (age)
• Asset-specific characteristics
  • Meter/Usage (current and future estimated)
  • Configuration, and
  • Geography (region specific within the US and Canada)

This, combined with the ability to stress-test the residual values according to varying economic conditions, provides the best source of information for those looking structuring lease deals or to those looking to make fleet management decisions.

Lease finance institutions can use the current values provided in the tool to evaluate existing leases both as a matter of periodic portfolio monitoring exercises and to determine appropriate pricing to facilitate remarketing as leases come due.

Additionally, Rouse aggregates publicly available sales transactions and provides them in one centralized location within the portal.  This arms users with a streamlined source for analyzing market data.

See also

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