What Affects the Resale Value of an Industrial Generator?

There are many reasons why people may sell their generator. It could be due to requiring an upgrade, looking to switch to another type of fuel configuration for your backup power systems, or a backup generator may no longer be needed at a specific site or facility and the seller is looking to recoup costs on the generator also known as asset recovery. Whatever the reason may be, selling a used generator can be a fairly straight forward process, but one item you should expect – you will not get back the full value of what you initially spent on the generator when purchased new or lightly used. Similar to cars and other automobiles, generators can depreciate over time, but still be in great shape and perform when needed in events of power outages or other emergencies. This is why used generators are popular, as used generators deliver great value for the cost of acquisition. Before you decide to put your generator up for sale, consider the following.

Exterior Visible Wear & Tear

For generators that are installed outdoors in a enclosure, the first thing you may notice is the exterior of the unit. These enclosures are designed to protect the generator from the elements and some higher end generator enclosures can even reduce the noise output of a generator while it’s running due to the sound attenuation features added to it. In the same vein, since the enclosure is exposed to the elements, they can naturally experience wear and tear over time. Some examples can be paint fading, dings, dents, and in some cases rust. As generator enclosures are fairly expensive to fabricate, it may affect the value of a generator when looking to sell.

Mechanical Wear & Tear

Though generator enclosures are considered extremely vital to ensure a generator set is protected from exposure to the elements and from other factors such as flying dirt, debris, or minor collisions, the mechanical condition is much more critical. While not all mechanical wear and tear may be visible, there are certain items that may be clearly visible, such as cracked gas tubing on natural gas generators or leaks from components of the generator, such as the fuel filter or fuel lines. Electrical control panels may be disconnected or wires frayed or damaged over time. These are smaller items that may be easily addressed, but can affect the resale value of a generator.

Much more critical factors may be the generator set itself. The condition of the generator engine and/or the alternator play a great factor when looking to sell your generator. In our line of work, we have many different occurrences of generators either poorly maintained or suffered from quality issues during the manufacturing process. This can range from melted pistons, cracks in the engine, the permanent magnet generator (PMG) completely melted in the alternator, and even engine fires. These will all obviously affect the resale value of a generator, as it may not be worth the cost of repair. This is why routine service and maintenance is strongly advised when it comes to a backup generator.

Hours

Generator engine hours play a big role when it comes to selling your generator. When it comes to generator hours, you can think of mileage on a car engine. While they are completely different applications, the concept is the same. The higher the hours, the higher the depreciation of the unit. Though it must be noted – low hours does not mean that max value is guaranteed, as it depends on a variety of factors. That being said, generators with lower hours are generally looked upon more favorably, because generators that have higher hours tend to require more service and maintenance to ensure that it will run properly. Generators with higher hours also tend to have greater wear and tear compared to generator sets with lower hours.

Size

When it comes to pricing generators, one of the biggest factors that affect overall cost, pricing, and in turn resale, is the size of the generator. This one may seem like common knowledge, but the bigger the generator, the higher the cost. This is largely due to the fact that larger generator with higher kW ratings required larger, more powerful engines to meet output requirements.

Features

This is one area that is overlooked at times, but can play a major role in the resale value of a generator. Generally, the newer a generator set is, the newer the technology that is installed within the unit. Newer technology for generators are packed with innovation that make generator related tasks much easier and thus much more friendly for users and technicians that maintain the unit. The technology could range from informational status displays, generator controls, greater fuel efficiency, switches that provide the ability to change between different fuel types (depending on the type of unit), monitoring systems to keep an eye on the generator performance and vitals, remote shutoffs for safety situations, which can all provide a higher quality of life for generator owners and operators alike. Additional features that are fairly standard for many new builds, but may not have been standard for older manufactured units could be engine block heaters and battery chargers. Additional features that could have been options added by the customer could be fuel tank size, sound-attenuated enclosures that reduce the decibel output of generators, and even additional features on the enclosure itself, such as louvres (louvers) and rodent guards that provide enhanced protection against the elements and critters alike. Features mentioned and many others can affect the overall resale value of a generator, so it’s important to make note of any additional options that were added and installed on the generator when initially purchased.

Service History

A well-maintained generator that has been serviced regularly will sell a lot more favorably than a generator that not. Often times, when a generator is serviced, there is some sort of documentation that logs the service, what was completed, and when. This ensures that the generator was maintained and should hopefully experience less issues when compared to a generator that may have been neglected. If you have documented records of any generator maintenance, be sure to gather them together.

While there may be areas of used generators we could nitpick at, these are a lot of the major focal points when it comes to selling your generator. If you’re looking to sell your used generator, but don’t know where to start, then give us a call! We here at Woodstock Power Company are always in the market to buy used generators nationwide across the United States. Our sales team are industry experts that can guide you through the process from A to Z and willing to work with you on the best possible pricing for your used equipment.

Give us a call or send us an email: 610-658-3242 or sales@woodstockpower.com

Additionally, you can fill out our Contact Form with any questions or inquiries and our representatives will get right back to you.

THE WOODSTOCK POWER COMPANY EXPERIENCE

We have industry experts that focus on commercial generator sets, with in-depth industry knowledge to help you choose the right generator that fits your needs. We are experts in providing generators for data center backup power needs, as well as data center decommissioning services.

We are industry leaders in buying and selling used generators to fit the needs of many businesses, including commercial, industrial, medical, agricultural, and university. This includes facilities like hospitals, better living centers, nursing homes, airports, hotels, resorts, restaurants, retail centers, manufacturing, production, and more.

Our experts are ready to assist you in answering any questions you may have about power generator sets to help you find the best selection in our inventory based on:

Peak & Average Power Requirements
Fuel Preference (Natural Gas or Diesel)
Portability & Stationary Power
Prime & Standby Generator Requirements
Available Space & Exhaust Restrictions

We carry only the most top-rated new, used, and surplus power generator sets for sale, providing you with a great value generator that will fit your budget.

Our generators have been thoroughly inspected, serviced, and verified, which ensures that you will be buying a quality generator that you can depend on. If a generator is not up to par with industry standards, we make all necessary repairs or modifications and fully test every generator before we sell. This ensures a full turnkey generator that’s ready to fire up and go!

Due to our wide selection of generator sets, we’re confident that we can find the model that best suits your operational needs and budget.

We also buy used generators in good quality, if you have already upgraded and you’re looking to sell your older model.

Feel free to contact us with any questions, concerns, or inquiries to learn more about the Woodstock Power Company experience and the quality level of products & services we provide.

« PREVIOUS