Rising fuel prices may have played a role in the 44 percent increase in U.S. construction equipment repossessions that occurred in the fourth quarter of 2005, according to Nassau Asset Management.
Construction equipment owners didn’t fare as badly as truck owners, however. Compared to the fourth quarter of 2004, tractor-trailer truck repossessions increased 145 percent for the same period in 2005.
Nassau reported in November that equipment repossessions and liquidations in the first three quarters of 2005 increased significantly for the first time since 2002.
“We believe fuel costs in 2005 have contributed directly to the rise in truck repossessions, and may have had some impact on construction repossessions,” said Edward Castagna, Nassau president. “But it is important to note that more positive factors are also at play.”
Volume has increased across the equipment leasing industry, which means that more leased equipment was on the marketplace in 2005 than the year before, Castagna said.
“Naturally, there will be a rise in repossessions and liquidations when the pool of equipment in the marketplace has increased,” Castagna said.
The fourth quarter traditionally is the slowest for repossessions and liquidations.
Nassau provides asset recovery, appraisal, collections, liquidation and remarketing services for equipment leasing and finance companies nationwide.
— Lance Orr