What equipment holds its value? A value-retention analysis by asset class
Across published used-equipment market data, most machinery loses 20 to 35 percent of its value in the first year, then settles into a slower 8 to 12 percent annual decline. After that, the asset class and, above all, its technology generation decide what is left. Equipment whose value lives in durable mechanics and a deep used market, forklifts, machine tools, construction iron, holds value better than equipment whose worth is tied to a software or technology generation that can be superseded. Age matters, but obsolescence usually matters more. The figures below are general public-market ranges, not a substitute for appraising a specific asset.
By Jared Lukes · CEO & lead appraiser · June 1, 2026
The four forces that decide value retention
Whatever the asset, four forces explain most of what an appraiser sees in the secondary market. Together they explain why two machines of the same age can be worth very different amounts.
- The first-year cliff. Almost everything takes a steep early hit as it moves from new to used. Published depreciation references put the first-year drop at roughly 20 to 25 percent for excavators and electric forklifts, 15 to 20 percent for CNC machine tools, and 25 to 35 percent for over-the-road trucks.
- Technology generation and obsolescence. The biggest differentiator between classes. When a control, software platform, emissions tier or imaging generation is superseded, value falls faster than wear alone would explain. This is functional and economic obsolescence, and it is why a mechanically sound machine with an unsupported control can be hard to sell.
- Mechanical wear and remaining life. Hours, mileage, cycles and the condition of expensive wear items, an excavator's undercarriage, a truck's driveline, a CNC spindle and ballscrews, an imaging tube. This is the physical depreciation that tracks use, not the calendar.
- Market depth and serviceability. A deep used market and available parts support value; thin demand, orphaned platforms and high removal or freight cost subtract it. Equipment that is simple to service and easy to redeploy holds value best.
Value retention by asset class
The table shows the approximate share of original value typically retained, drawn from published used-market and depreciation references (sources below). Treat these as broad ranges: brand, hours, condition, configuration and market timing move any individual asset well above or below them.
| Asset class | ~3 years | ~5 years | Primary value driver |
|---|---|---|---|
| CNC machine tools (premium brands) | 60–75% | 50–65% | Brand, control generation, spindle hours |
| Forklifts (premium electric) | 50–60% | 35–45% | Battery condition, hours, power type |
| Construction equipment (excavators/loaders) | 55–70% | 40–55% | Hours, undercarriage, emissions tier |
| Forklifts (internal-combustion) | 40–50% | 25–35% | Hours, emissions, condition |
| Class 8 trucks (over-the-road) | 45–60% | 35–45% | Mileage, driveline, age |
| Medical imaging (MRI/CT) | Tracks technology generation, not accounting life (see below) | Generation, tube/coil, software, refurb demand | |
Ranges synthesized from the public sources listed at the end. They describe the market generally and do not value any specific asset, which depends on inspection and the premise of value.
What the data shows, class by class
CNC machine tools hold value best, if the brand and control are still supported. Premium builders can command 60 to 75 percent of original list even after several years, while a machine with an obsolete or discontinued control is hard to sell at any age. Spindle hours and documented maintenance move the rest. See how used CNC equipment is valued.
Forklifts split sharply by power type. Premium electric trucks retain meaningfully more than internal-combustion units across the same span, helped by fewer moving parts, battery improvements and tightening emissions rules, with battery condition the single biggest swing factor. See what material handling equipment is worth.
Construction equipment is hours-driven and cyclical. Iron depreciates steadily on hours and undercarriage condition, and the deep public auction market means values move with the cycle, used heavy-duty values softened through 2024 and 2025. Emissions tier can limit where an older machine may be sold. See what construction equipment is worth.
Trucks plateau after the early cliff. Class 8 tractors shed value fastest in the first 12 to 18 months, then slow, with mileage thresholds around 250,000, 500,000 and 750,000 marking step-downs in the buyer pool. See what fleet and rolling stock is worth.
Medical imaging is the clearest case of accounting life versus market life. Tax schedules treat imaging as a five-year asset, yet CT and MRI systems often run 15 to 20 years and enjoy a strong refurbishment market, so their value tracks technology generation, tube and coil condition and which software conveys, far more than book age. See how medical imaging equipment is valued.
The practical takeaway
If you are buying, the steepest depreciation has already happened on a three- to five-year-old asset from a supported platform, which is why used equipment is often the better value. If you are lending against, insuring or selling equipment, the book value on the balance sheet rarely matches the market, in either direction, and the gap is widest exactly where technology generation drives the class. That gap is the reason an independent, inspected appraisal exists: it values the specific asset on the right premise, rather than applying a depreciation curve to a purchase date. See how a defensible number is built.
Sources
Analysis synthesizes publicly available used-equipment market and depreciation data, including: Sandhills Global / AuctionTime & Machinery Trader used-equipment value reports; ACT Research used-truck value forecasts and published Class 8 depreciation analyses; industry forklift residual-value and depreciation references; CNC machine-tool resale and depreciation references; and IRS MACRS class-life guidance for medical and industrial equipment. Figures are general market ranges as of 2026 and are not a substitute for a USPAP-compliant appraisal of a specific asset.
Common questions
Answers, up front.
What type of equipment holds its value best?
In general, durable equipment from premium brands with a deep used market and current, supported technology holds value best, premium CNC machine tools and premium electric forklifts are strong examples. Equipment whose worth depends on a software or technology generation that can be superseded, or that is costly to remove, tends to lose value faster than wear alone would suggest.
Why does book value rarely match market value?
Because accounting depreciation follows a fixed schedule tied to purchase date, while market value follows technology generation, condition, hours and demand. Tax rules may treat imaging equipment as a five-year asset even though it runs 15 to 20 years, and a mechanically sound machine with an obsolete control can be worth far less than its book value. An appraisal values the actual asset and market, not the schedule.
Does newer always mean more valuable?
Not necessarily. After the steep first-year decline, a well-maintained three- to five-year-old machine on a supported platform can be the better value than new, and can outperform a newer machine whose control or software is already being phased out. Technology generation often matters more than age.
Can I use these ranges for my own equipment?
Use them as orientation, not as a value. They are general public-market ranges, and any specific asset turns on brand, hours, condition, configuration, what conveys and the premise of value. We do not quote a value before inspection, and a defensible number requires appraising the actual asset.