Even if you don’t operate in the construction industry, you may find that you need a few pieces of equipment to increase efficiency at your facility. Once that decision is made, it’s then a question of how you’ll purchase the equipment.
There are several advantages to buying used machinery, so long as you go into the process properly informed. Just like buying a used vehicle, you could end up pouring a lot more time, energy and money into used machines than expected if you don’t buy the right piece of equipment.
Assessing the History and Condition Before Buying Used Machinery
If you determine that buying used machinery is the most advantageous option, you’ll need to get serious about evaluating equipment. You never want to buy a piece of machinery without knowing what kind of condition it’s in.
Reviewing Maintenance Records
It’s important to understand how well the previous owners maintained the equipment, as this can give you valuable insight into its current condition. Ideally, look for equipment that has been consistently serviced according to the manufacturer’s guidelines.
Request the maintenance records to review what work was done, when it was performed, and who handled the service. Pay attention to any major repairs and whether they were covered under warranty. Additionally, consider if any repaired issues could become recurring problems in the future.
Evaluating Usage History
Another thing to analyze is the usage history for the equipment. Most importantly you’ll want to know:
- If the machinery performed light-duty or heavy-duty work
- How many hours it has been used
- What environments it was used in
- How it was stored when not used
- If the equipment was used in a way that would void warranties
You may be able to spot signs of excessive wear just based on the usage history alone. For example, if the machine has more hours of operation than average for its age, that’s a sign the equipment could be more worn out than expected even if it looks fine. And if the machinery was used for purposes outside of its intended use that’s another sign to watch out for.
Inspecting the Current Condition
Reviewing the records will give you a better idea of what you’re seeing when you physically inspect the machinery. It’s important that someone who is knowledgeable with the machinery perform the inspection. That way they can spot warning signs that are more subtle than rust, wear and damage. They’ll be able to listen for vibrations and detect leaks that would go unnoticed by the untrained eye.
There are a number of apps and software programs that are designed to aid in the inspection process. Some tools are more simple and can perform tasks like generating inspection reports. Others are more robust and provide feedback on what to inspect while tracking the results.
Testing the Heavy Equipment
After the inspection, it’s time to test out the equipment before buying heavy machinery. The goal is to ensure that the heavy machinery functions properly and runs smoothly.
The operational tests that will need to be performed vary depending on the equipment, however, all machinery should be tested to ensure:
- It’s fully operational
- Fuel system is clean and leak-free
- Belts are in good condition with no fraying
- Battery is in good condition and working
- Suspension system doesn’t bounce or make noise
- Cab is well maintained
Identifying Potential Issues
While testing the equipment you want to look for any potential issues. You may even want to consider getting a condition report to gauge if you may have issues down the road with certain components.
If you do discover a potential issue, ask to investigate it further if you’re unsure. Get a second opinion from a specialist that knows the machinery. From there you can decide whether it’s worth it to purchase the equipment and negotiate a price based on the estimated repair cost.
Researching the Market for Used Construction Equipment
Comparing Prices
One of the top priorities when buying used equipment is getting a good price. After all, lower cost is a motivating factor. There are a few methods to compare prices for used equipment and determine a good price range. You can:
- Research the price of equipment for sale on online marketplaces
- Review industry contracts for leasing and purchasing equipment
- Research the price for new equipment and subtract the depreciation
The seller is going to try to get the most profit possible, so keep in mind the price advertised isn’t the same as with a new piece of equipment. It’s definitely negotiable, which is why it’s a good idea to establish an acceptable price range for a piece of equipment.
Understanding Market Trends
Another factor in purchasing used equipment is market trends. What is the supply like? Is there a high demand on the used market for the equipment? Is there a reason why similar equipment isn’t being manufactured?
What’s happening in the market is going to affect what’s available as well as the price. The market trends will also tell you how aggressive you need to be when you find the right equipment. It helps to get a feel for the market trends at the beginning so you can adjust accordingly.
Evaluating Availability for Parts and Services
The piece of equipment you need may be available on the used market, but what about replacement parts? Are they easy to come by? Does the equipment require special servicing?
Any time you’re buying used equipment that’s older it’s important to gauge how easy repair and maintenance will be. If it’s challenging, you could find yourself in a bind with equipment that is no longer operable shortly after purchasing it.
Verifying the Seller’s Reputation Prior to Buying Used Equipment
Just as important as researching the equipment is researching the reputation of the seller. Who is selling the equipment and their track record of deals is a good indicator of what kind of value you can expect.
Researching the Seller’s Background
Start by doing a little background research. The Better Business Bureau (BBB) is a great resource for finding out when a business was established, who owns it and if licenses are required for operation. From there read reviews and complaints from customers that were submitted to the BBB. If there were complaints, look into how the company handled them.
Expand the research out to check other review sites and Google reviews to get a better feel for customer satisfaction. You can also check state agencies that regulate resellers to find out if there have been any formal complaints.
Reviewing Licenses, Certifications and Accreditations
Some sellers, like equipment dealers, may need a license in the state where they operate. First, check with the state licensing department to figure out if a seller needs to have a license, and if so whether the license is in good standing.
There are also certifications and accreditations that send a reassuring signal that a seller is credible. Some recognized industry certifications include Associated Equipment Distributors (AED) certifications for managers and technicians as well as the Association of Equipment Management Professionals’ Certified Equipment Support Professional (CESP) accreditation.
Understanding Return Policies and Warranties
Heavy equipment often come with warranties when they’re bought new. However, the warranty situation isn’t as clear when you’re buying used equipment.
Make sure to get clarification about whether or not the manufacturer’s warranties are transferable. Also, review the warranties to ensure nothing was done to the equipment that would void the warranty.
Any seller warranty should be reviewed along with the seller’s return policy, if one is offered. Keep in mind that warranties and return policies are negotiable. If you aren’t feeling 100% certain, ask for a longer return policy or broader coverage on the warranty.
Considering the Price and Future Costs of Buying Heavy Equipment
Evaluating the Initial Purchase Price
Your initial market research should tell you if a piece of used equipment is priced fairly. Anything that is marked below the market value should be approached with caution. Equipment that is above the average price range could be worth considering, if the seller is willing to come down on the price.
Equipment that is in a fair price range can be inspected to determine where the price should fall in the range. The better the condition is, the higher the price tends to be. When you’re negotiating the price come armed with information that shows you know the fair market value and that’s the basis for your offer.
Estimating Future Costs
The initial purchase price is the biggest single cost, but there are other expenses associated with owning heavy machinery. When estimating the future costs consider:
- The age and condition of the equipment
- Average cost for common repairs
- Average cost for regular maintenance
- Operating expenses
The maintenance records should be used as a resource for calculating costs. You may also need to talk with an expert or two to figure out what the cost will be for certain repairs that may be needed. If you don’t have warranty coverage, it’s a good idea to budget for at least one year worth of maintenance and operating expenses.
Ensuring Compatibility With Your Needs and Goals
The price may be right, but can the equipment actually get the job done? You’ve got to explore your specific needs and goals to ensure it will.
Matching Specifications
One of the easiest ways to gauge compatibility is to match the specifications. That requires first identifying your requirements for the business or project. From there you can determine the type of equipment that’s needed and the specifications.
Some of the specifications to pay the most attention to are related to capacity and performance. A piece of heavy equipment will need to meet the minimum specifications for both.
Evaluating Space and Integration
Once you’ve acquired equipment it needs to be put into operation. Before that can happen, you have to make sure you have the space to accommodate the machinery and that it will integrate with your existing equipment.
There are physical limitations, but strategic space planning can help you get creative with fitting the equipment into your facility. You can even use machinery warehousing solutions to save space when the equipment isn’t in operation.
You may need to talk with the equipment manufacturer to verify equipment compatibility if the used machinery is going to be integrated. Be prepared with machinery VIN numbers and component parts to get the most accurate information possible.
Handling the Logistics After a Used Equipment Purchase
Buying equipment that’s used is a multi-step process that continues after the purchase is made. Once ownership changes, the equipment needs to be transported to its new location.
Transporting heavy machinery is a specialized skill that can’t be handled by conventional residential and commercial movers. It often requires the assistance of riggers, cranes and custom crating to ensure the equipment won’t get damaged during loading, transport or unloading. You may also need clean room services for highly sensitive equipment that must remain free of contaminants.
Working with a full-service machinery moving company like Able Machinery Movers will make things less complicated. With one mover handling all of the logistics from start to finish the transport will be seamless and scheduling will be much easier.
The team at Able Machinery Movers offers logistical planning that reduces the time it takes to transport heavy machinery so that equipment can be put into operation quickly. We’ll determine what type of disassembly is needed, if climate conditions need to be controlled during transit and what type of heavy machinery moving equipment is best suited for the job. We’ll also review the facility floor plan to help with placing the equipment and getting it assembled onsite.
Contact us today to find out more about how our team plans and executes efficient machinery moves!