Service Life of Construction Equipment

The service life of a construction machine describes the time period between its initial startup and final shutdown. It is typically measured in years. During its service life, a machine is continuously operational and ready for its intended use.

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Service life is sometimes also referred to as total useful life. However, it is important not to confuse service life with useful life according to the depreciation schedule: The useful life according to the depreciation schedule is an average expected value established by the German Federal Ministry of Finance, indicating how long a particular machine can be used. While this expected value is important for tax depreciation purposes, it does not necessarily correspond to the actual service life of the machine.

Particularly when used construction equipment is being inspected and valued, the age of the machine (i.e., the service life from initial startup to the valuation date) is not necessarily the determining factor. What is much more important is the number of operating hours (also called machine hours). The number of hours the machine has actually been in operation has a significant impact on the machine's condition, which is one of the central factors in the valuation process for used equipment.