Buying machinery is a big step – especially when you are looking for industrial equipment. Many people choose used equipment because it is cost-effective, but it is also important to keep in mind that you need to get functional equipment for the project. Used equipment tends to come with more risks when compared to new machines. The tips below will help in reducing the risks and helping you find a good deal. There are many factors you need to consider when buying used equipment. The following tips will help you make the right choice without having to waste your time and spending more than necessary.
- Seller’s Reputation
The first thing you need to look at is the information and reputation of the buyer you want to buy from. Inspect the company or individual advertising the equipment because it will help you know more about the transaction. If the seller is reliable with testimonials or has an established presence, then it is going to be easier to trust their specs.
If it is hard to find the identity of the seller, put in a little more effort. One way to find more information is through past customers. This should give you a rough idea of how long the seller has been around. You will feel more confident dealing with a seller when you know more about them.
- Buyer and Seller History
Buyer and seller history is going to help you when buying used equipment. Looking at the equipment’s past is going to help you know the frequency of use and how many times it has circulated. You can also know how good the equipment was maintained by looking at the reputation of the previous owners.
When looking at the past ownership of the equipment, it is important to also check the authorities to ensure it is not a stolen equipment. Take the serial number and product identification number to the police department and have them see whether it is a stolen equipment. The last thing you want is to be in possession of stolen equipment. There are online services you can use in checking whether the equipment you want to buy has been involved in theft or damages. A good option is The National Equipment Register. Perform these checks to avoid any problems when you buy the equipment.
If the equipment you are interested in has been seized or has liens associated, the ownership is going to be more complicated. It is a good idea to do a lien search because a statement from the owner is not going to give you much legal protection. Uniform Commercial Code will provide you a financing statement that will help you know whether the equipment has liens against it. This information is there to help construction machinery buyers confirm information about the equipment they are about to buy. There might have been past liens, but this is going to help you know of existing liens.
If you find out that it has been seized, it is important to be wary of the condition and whether it has been properly maintained. There is a high chance that the equipment did not receive regular upkeep because it was removed from payers who couldn’t pay in full. This is not always the case.
- Condition Description Matching Inspection
If the inspection is done and it comes out that there is a lot of difference between the description of the seller and the actual inspection report, avoid it. This is even more important when there is a significant discrepancy. You can end up on the losing end of the deal if you ignore signs of dishonesty.
If you have experience dealing with such machines, then you know how they look in the different stages of their lifespans. This means you can inspect it yourself. Have a closer look at the parts that are replaced the most and see if there have been parts replaced recently. Before you go on with the deal, make sure that the description provided by the seller matches what you get from the inspection.
If you feel like you are not experienced enough to know this, consider bringing along an expert or trusted colleague so that they can have a closer look at the equipment. When it comes to used equipment, there are times when you can accept the condition as long as it matches the process. Look at the places that get the most abrasion when in use, such as the undercarriage. You are the one to decide whether to go on with the deal or not when the assessment of the expert and the seller’s description differ.
- Listing Price
There are many considerations to make when judging an appropriate listing price when selling or buying used construction equipment. The price of the used equipment should never be the same as that of a new one. The worth of the machine is going to be based on age, operating time, and past maintenance. You should be careful when the listing price is too low. You need to consider depreciation and salvage because the seller wants to sell it fast.
Depreciation and salvage value are two important factors you have to look at when determining the actual cost. An equipment loses half its value when it is placed on the market after being used for a fourth of its lifespan. The value of the machine declines with time, but a well-maintained machine is going to be valuable if it has been maintained well.