Service Life of Construction Equipment

The service life of a construction machine describes the period between the first commissioning and the final decommissioning of the machine. It is typically measured in years. During its service life, a machine is continuously ready for use and capable of performing its intended function.

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Service life is sometimes also referred to as total operating life. However, it's important not to confuse service life with useful life under the depreciation schedule: useful life under the depreciation schedule is an average expected value set by the Federal Ministry of Finance for how long a particular machine can be used. While this expected value is important for tax depreciation purposes, it doesn't necessarily match the actual service life of the machine.

Especially when assessing and evaluating used construction equipment, the age of the machine (i.e., the service life from first commissioning to the time of assessment) is not as decisive as it might seem. What matters much more is the number of operating hours (also called machine hours). The number of hours the machine has already been in use has a major impact on the machine's condition, which is one of the key factors in the valuation process for used equipment.