Amid the
talk of customers, structures and partnerships, Michael Rohmeder,
Central Europe area manager for Ritchie Bros. Auctioneers, reminded
the lessors gathered in Munich about another important aspect of
leasing – the asset and its value.
Using data from Ritchie Bros., the
world’s biggest industrial auctioneer which specialises in
re-selling heavy equipment from the construction, transport and
agriculture sectors, Rohmeder argued for leasing firms to keep a
close eye of the equipment auction market.
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“The big success in remarketing
starts before you sign a lease, when you look at the price you are
willing to pay a dealer or manufacturer for the asset,” he
said.
“Market prices are one of the most
important factors in your business models.”
Rohmeder illustrated the importance
of the reseller market and its impact on leasing profit with some
startling figures on Caterpillar yellow metal which dropped from
25% above average to 20% below average from the first quarter of
2008 to the final quarter of 2009.
He said the market experienced a
massive price drop during the 2008 crisis and said current
uncertainty would have an impact too.
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By GlobalData“It is vital to react quickly to
the market, and most sellers wait too long,” he added.
Rohmeder also said Ritchie Bros. can act as a partner in
managing liquidity and reducing assets to meet capital requirements
under Basel III by restructuring non-performing loan
portfolios.
See also:
Conference opens with big
questions
Using leasing to ‘look
better’
Small companies present
opportunities
