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Ian Gourlay

  • Posts: 5746
Truckmount Equipment Depreciation
« on: October 10, 2010, 10:45:32 pm »
Been a lot of talk about 3 vac machines

But I was just thinking how much a Prowler would sell for after one years use.

2 Years  use

3 Years. 

Or Any other Model you can think off.

David_Annable

  • Posts: 689
Re: Truckmount Equipment Depreciation
« Reply #1 on: October 11, 2010, 08:50:52 am »
I'll have a go

I year old £5000

2 year old £4000

3 year old £3000

Dave

PS Might be plus Vat
NCCA, Woolsafe, IICRC Leather Cleaning Technician

from edge2edge

  • Posts: 1507
Re: Truckmount Equipment Depreciation
« Reply #2 on: October 11, 2010, 10:24:09 am »
Prowlers secondhand are rarely available so maybe retain value slightly better than other machines(tm or porty).Regards Alan(swindon)

Joe H

Re: Truckmount Equipment Depreciation
« Reply #3 on: October 11, 2010, 01:27:22 pm »
So many cvariables is'nt there.
As Alan says - supply and demand will play its part.
Has it been serviced well.
How many hours?
What comes with it - the Prowler package includes 100' of solution hose and 2" suction hose, and 50' of 2" discharge hose, and a wand.

(hey Ian, how am I doing selling Prowlers?)

wynne jones

  • Posts: 2918
Re: Truckmount Equipment Depreciation
« Reply #4 on: October 11, 2010, 04:24:32 pm »
If you buy a TM from a dealer and sell it a year later I wouldn't be surprised if you lose 40% on it.

I suspect most people who have a TM keep it on average 4-5 years, I may be wrong there not sure.

It's not expensive, you just can't afford it.

Ian Gourlay

  • Posts: 5746
Re: Truckmount Equipment Depreciation
« Reply #5 on: October 11, 2010, 05:32:40 pm »
Joe

Quite well ;D ;D

The thought occurred to me it is the loss in value plus earnings over a given period  you need to take into account when buying equipment

clinton

Re: Truckmount Equipment Depreciation
« Reply #6 on: October 11, 2010, 05:35:05 pm »
Also if you buy new it can be offset against your tax ian.


derek west

Re: Truckmount Equipment Depreciation
« Reply #7 on: October 11, 2010, 05:36:47 pm »
year 1 20 to 35%
year 2 15 to 20%
year 3 10 to 15%

all depending on hours and how well its looked after.

remember! depreciation is tax deductable.

clinton, i'm off to that nursing home again tonight, thats another viking lager i owe you. ;)

Shaun_Ashmore

  • Posts: 11382
Re: Truckmount Equipment Depreciation
« Reply #8 on: October 11, 2010, 05:40:10 pm »
Look at it another way, you will get through more work with a TM so the depreciation on it becomes a nonesense after 4 years you could throw it away and still be quids in (providing you have the work in the first place)

Shaun

Doug Holloway

  • Posts: 3917
Re: Truckmount Equipment Depreciation
« Reply #9 on: October 11, 2010, 05:49:44 pm »
Hi Guys

In my mind I've written mine off over 5 years so after that anything is a bonus.

It is tax deductable so probably works out at about 50 GBP a week, not a lot in business terms!!

Cheers

Doug

clinton

Re: Truckmount Equipment Depreciation
« Reply #10 on: October 11, 2010, 06:54:45 pm »
Hi d  its ok il wait for my xmas presie ;D

Shaun_Ashmore

  • Posts: 11382
Re: Truckmount Equipment Depreciation
« Reply #11 on: October 11, 2010, 07:00:47 pm »
Derek I take it that it's to clean and not a stay over :o

Shaun

Dave_Lee

  • Posts: 1728
Re: Truckmount Equipment Depreciation
« Reply #12 on: October 11, 2010, 07:23:46 pm »
I would say equipment costing of over £20,000 suffers the biggest drop in second hand value. Over and above that the higher you go the bigger the drop.
Equipment is only worth what someone is willing to pay for it, no matter how good it may be, and only a few CCs in the UK would be willing to pay more than £20,000 for a second hand set up.
If you purchased expensive equipment, you don't do so to sell it on after a short period of time, you buy it to use it, in the hope it will pay for itself. It is also nice to have zero tax to pay for a year too.
Dave.
Dave Lee, Owner of Deepclean Services
Chorley Lancs. Est 1980.
"Pay Cheap -You get Cheap - Pay a little more and get something Better."

elliott cleaning

  • Posts: 778
Re: Truckmount Equipment Depreciation
« Reply #13 on: October 11, 2010, 11:07:20 pm »
No tax to pay, Dave :o   - No wonder the public finances are in the state they are ;)

wynne jones

  • Posts: 2918
Re: Truckmount Equipment Depreciation
« Reply #14 on: October 12, 2010, 12:29:56 am »
Interesting that all those with TM are quite happy with the fact their machines depreciate so much whereas I can see many portable users adding this to the list of accuses not to get a one.
It's not expensive, you just can't afford it.

Ian Gourlay

  • Posts: 5746
Re: Truckmount Equipment Depreciation
« Reply #15 on: October 12, 2010, 05:39:17 am »
I was reading it the other way round.

Putting aside the big number truck mounts  it could possibly work out similar costs to a portable.

And if you were unable to work  you have not necessarily lost all your money


Now all I need is 250 big commercial clients to clean ;D ;D ;D

Doug Holloway

  • Posts: 3917
Re: Truckmount Equipment Depreciation
« Reply #16 on: October 12, 2010, 07:46:29 am »
Hi Ian

Running a TM is undoubtedly more expensive but you will clean more, better and with a greater market presence all of which lead to a higher overall income.

Cheers

Doug

Dave_Lee

  • Posts: 1728
Re: Truckmount Equipment Depreciation
« Reply #17 on: October 12, 2010, 08:51:32 am »
No tax to pay, Dave :o   - No wonder the public finances are in the state they are ;)

I think they win every time though dont they, especially as there was over £6,000 in vat and I'm not registered.
Dave.
Dave Lee, Owner of Deepclean Services
Chorley Lancs. Est 1980.
"Pay Cheap -You get Cheap - Pay a little more and get something Better."

Ian Gourlay

  • Posts: 5746
Re: Truckmount Equipment Depreciation
« Reply #18 on: October 12, 2010, 09:17:01 am »
You can Guess

The Marketing Book I have been reading this week says stop messing around with the small stuff go for the Big Deals

derek west

Re: Truckmount Equipment Depreciation
« Reply #19 on: October 12, 2010, 10:01:56 am »
Derek I take it that it's to clean and not a stay over :o

Shaun
not staying, i seen the food they serve.
24hr maccies on the way home, well! a slight detour but well worth it.