Purchasing second-hand construction equipment can save your company big. If you have a construction business idea and want to start you own business, this article is a must read. As easy as it sounds, it is not easy to pick the best second-hand equipment. Picking the wrong construction equipment can end up costing you more money in the long term. Here, surplus.net helps us detail some factors to consider before you decide on buying used construction equipment.
The Reputation of the Seller
The first thing to consider when buying used construction equipment is the reputation of the seller. This is not different from buying a used car or any other product.
You need to check the reputation and information of the seller before purchasing their used equipment. It is essential to do a background check on the company selling second-hand equipment. If they have a good reputation, they are more likely to sell high-quality equipment. Chances are that if they are reliable and have a good reputation in the industry, they might have the best machinery.
If you cannot find information about the seller, then you need to evaluate the reputation of the seller. You can, therefore, talk to their past customers. They can share their experience with the used equipment of the seller. If the seller has a good reputation and is trustworthy, you will have more confidence in their used equipment.
Be sure to check out their Google reviews, Better Business Bureau ratings, and just do a basic online search for them.
Buyer and Seller History
Another thing to check before buying used construction equipment is the buyer and seller history. Check the buyer and seller history to know how the machinery was used. The past changes in the ownership of the used equipment can help you know the current condition of the equipment. The reputation of the previous owner can help you know how the machinery was maintained.
Do not just check the past ownership of the used equipment. It is even better to confirm that the equipment was not stolen. You can, therefore, take the serial number and product identification number of the machinery to authorities or just make sure you have proper sales receipts and other documentation.
Some online services can also help you know if the second-hand machinery was stolen. You can perform the checks on the National Equipment Register.
If the second-hand machinery has been seized or has liens associated with it, then it can be hard to change the ownership of the machinery. Do not just rely on an issued statement from the owner of the used machinery. The statement cannot offer you maximum legal protection.
If the machinery has been seized, then you need to check the current condition of the machinery. You must make sure the machinery was properly maintained. Sellers usually seize machinery from buyers because they cannot pay for the machinery in fuel. Therefore, these buyers may not afford to maintain their machinery. That is why you want to ensure the seized machinery is in good condition before purchasing it.
You need to inspect the second-hand machinery or hire an expert to inspect it on your behalf before buying used construction equipment. If you find the description of the seller does not match your inspection, do not purchase the equipment.
Being familiar with the equipment you are purchasing also can help in this process. If you understand how the equipment looks in the different stages of its life, then you can inspect the machinery yourself. In some cases, you may need to replace some of these parts immediately.
Check the wear and tear of the machinery. Too much wear and tear can affect the condition of the machine. You have to make sure the description of the seller matches the condition of the machinery. If they do not match, you do not have to purchase the equipment.
If you do not know how to inspect the machinery, you can hire an expert to inspect the machinery. The expert can check the state of the used equipment.
You want to make sure the price of the used equipment matches the current condition of the used equipment. If the assessment of the expert and description of the seller do not match, you may not need to purchase the equipment.
The last yet one of the most important things to consider when buying used construction equipment is obviously the price. You need to consider several things before purchasing second-hand construction equipment. If you are ready to purchase used equipment, you must make sure the listing price is lower than the price of brand new equipment.
However, the listing price should represent the condition of the used equipment. The prices of used machinery usually depend on the past maintenance, age, and operating time of the used machinery. If the listing price is very low, it can be a huge red flag. You want to make sure you are getting the best value for money.
The salvage value and depreciation can help you determine the potential cost of the used machinery. For example, many second-hand machines retain around 50% of their original value. However, the machinery loses its value over time. If the seller properly maintains their machinery, many people can purchase their machinery. Proper maintenance can extend the life of the machinery.
What to Know About Buying Used Construction Equipment – Summary
There are many benefits to buying second hand machinery for your business. The main one is by reducing business costs. This can make it more feasible to start you company as well, as you would need less start up capital to start taking orders and delivering to customers.