The director is authorized to sell, exchange, or otherwise dispose of all obsolescent road machinery, equipment, and material no longer needed, required, or useful for highway purposes. All such obsolescent road machinery, equipment, and material offered for sale to political subdivisions must be sold by negotiation to the purchasing political subdivision at the department‘s established market value. All such obsolescent road machinery, equipment, and material which is offered at general sale and valued at more than three thousand dollars must be sold by public auction or by sealed bids at the highest and best bid, reserving the right to reject all bids, with no money deposit required of any bidder prior to sale. Any funds or money derived from the sale of such property must be credited to the funds from which such purchase was made originally.