How Will Diesel Exhaust Regulations Change Used Construction Equipment Values?

Diesel exhaust regulations in the U.S.* and Europe are creating a generation of engines that require highly refined fuel that is not available in most of the rest of the world to operate. This raises the question of what will happen to used machines powered by these engines when they are sold at auction, given that much of the used-equipment demand today is generated by buyers working in countries that will not be able to find fuel for these ultra-low-emissions engines.

Industry consultant Manfredi & Associates has been commissioned to study the issue, and the company is offering the industry an opportunity to benefit from the study's results. 

The study is designed to answer the questions:

  • Will Tier 4 equipment be saleable outside Tier 4 markets?
  • How will equipment users respond to the increased cost of purchasing and operating Tier 4 machines? What will be the impact of Tier 4 machines on used equipment sales?
  • What will be the impact of Tier 4 machines on the U.S. and Canadian rental markets?
  • What will be the impact of Tier 4 machines on the worldwide auction market?
  • Will Tier 4 emission devices be disabled or modified on machines sold outside Tier 4 markets?

For more information about subscribing to the study and a copy of the proposal please contact Manfredi & Associates at the AED CONDEX booth #328, or call Frank Manfredi at (847) 922-9816.

* The U.S. Clean Air Act of 1990 established national air quality standards that have resulted in limits being imposed on the emissions from new mobile diesel engines. A 15L truck engine selling for $25,000 in 1997 now has a list price more than double that, producing more heat with lower fuel economy. Off-road engines used in construction equipment are just entering the expensive stages of meeting emissions regulations with increases expected to be greater than what was observed with on-highway truck diesel engines. There are many unintended consequences created by the regulatory process – including the impact on used equipment sales.

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