# Remarketing

Canonical URL: https://fundmyequipment.com/learn/glossary/remarketing/
Last modified: 2026-05-29T19:39:17+00:00
Type: efin_glossary

## Summary

Lender's process of repossessing and reselling equipment after default.

## Content

Remarketing is the process of selling repossessed equipment, off-lease equipment, or trade-in equipment to recover value for the lender, lessor, or seller. The remarketing channel and effectiveness directly impact how much of a loan deficiency remains after a default.
Remarketing channels

Auction (live): Ritchie Bros., IronPlanet (Ritchie), Sandhills, Manheim (vehicles). Open to dealer and public bidders.
Auction (online): EquipmentFacts, Heavy Equipment Auction sites, OEM-operated online auctions
Dealer remarketing: directly sold to equipment dealers who add to their inventory
Wholesale to brokers: resold to equipment brokers who find end-user buyers
Retail private-party sale: direct to end-user buyer (rare for repossessed; common for lease returns)
Manufacturer pre-owned programs: OEM-certified resale (medical imaging, some construction)

How channels affect recovery
Auction prices are typically 60-80% of retail value. Direct dealer or retail sales recover 80-90% of retail but take longer. Lenders balance speed (turning the asset to cash) against recovery (maximizing proceeds).
Time-to-sale

Auction (live): 4-8 weeks from repo to sale
Auction (online): 2-6 weeks
Dealer wholesale: 1-2 weeks (fastest, lowest recovery)
Retail sale: 8-16 weeks (slowest, highest recovery)

Storage and cleanup costs
Between repossession and sale, the equipment needs storage and possibly cleanup or minor repairs to be salable. Storage costs accrue ($200-2,000/month depending on equipment size). These costs are added to the deficiency the borrower owes.
Why this matters to borrowers in default

Quick voluntary surrender typically results in lower storage costs and faster sale than a forced repo and disposition
Equipment in good condition sells better; equipment damaged during forced removal or storage neglect sells worse
The remarketing channel matters: some lenders give borrowers the option to find a buyer for the equipment (sometimes called "friendly sale" or "private-sale remarketing"), which can reduce the deficiency materially

What happens to the surplus (if any)
Rare in equipment repos, but if the equipment sells for more than the outstanding loan + costs + fees, the surplus goes to the borrower. In practice, this almost never happens; sale proceeds typically don't cover full debt.