How to Calculate the Blue Book Value of a Machine
Calculating the blue book value of a machine is not a difficult task. Calculating the accurate value can help you price your machine for sale, obtain an adequate amount of insurance coverage, or even decide whether or not to invest in repairs or simply replace the machine. There are many online guides and books that can assist you.
- Use an online value guide. An Internet search will help you to find many different online value pricing guides. A couple of reputable sites are UsedPrice, IronGuides and PriceDigest. First, check to see if your machine fits into any of their online categories. If it does, then you can search your machine's model number and name in the database. The site will provide you with a pop-up guide as to the machine's condition and value.
- Use a machine auction as a value guide. Check your local newspaper and classified adds for equipment and machine auctions in your local area. Attend a machine auction in your area and observe the price that machines similar to yours are selling for. Attending several auctions can help you determine the average sale price of your machine and will help you to calculate its value.
- Hire an appraiser. This should be your last resort, as hiring an appraiser can be pricey. Contact the Association of Machinery and Equipment Appraisers to find an appraiser in your local area. Be sure to obtain a copy of the appraiser's resume and check their referrals before hiring them. When you speak to the appraiser, inform them that you want to know your machine's book value. They will visit your house or place of business, observe and inspect your machine and calculate its value. An established appraiser should write up a report which will include your machine's current blue book value.