5 Things to Keep in Mind When Buying Used Equipment…
Purchasing used equipment can be a cost-effective purchase option for many businesses in the construction and industrial industries. However, this purchase decision generally carries a greater amount of risk than if buying new equipment. Fortunately there are several things the buyer can take into consideration when purchasing used equipment that will help mitigate that risk.
What is the seller’s reputation?
Doing some research on the seller could save you a lot of frustration and money down the road. Do they have good reviews? Do they have an established presence in the industry? If the answer to these questions is “yes” there are better odds that the equipment will be in line with the reported specs and condition.
Does the condition match the inspection?
Go through the inspection process that was used by the seller prior to placing the equipment for sale. Make sure all of the reported discrepancies are the only discrepancies. Chances are if they missed one thing, they missed more, or didn’t perform an inspection at all. If you plan on using the equipment immediately, do not purchase equipment that hasn’t been inspected before placing the equipment for sale.
What is the listing price?
Compare prices between other used equipment traders and the cost of new equipment. Used equipment should not cost the same as new equipment. If the cost is too low or seems too good to be true, it probably is. Consider the salvage value and depreciation when pricing used equipment.
Has the equipment been properly maintained?
How often was the machine maintained? Equipment that hasn’t been properly serviced and maintained at regular intervals, stands a greater risk of failing. Were there any major repairs?Was a major component replaced? This could be indicative of a problem with the machine overall or give a better idea of how well the equipment was maintained and what type of work they were using it for. Does anything currently need to be replaced? If something was missing from the seller’s inspection, ensure they replace it before it passes into your possession.
What is included?
Is the seller offering a warranty? Are they giving you the opportunity to test? Is the documentation provided? Sometimes buying equipment without these offerings could be a signal the seller is trying to hide something or doesn’t have access to the machine’s maintenance and use history.