5 tips that will help you choose the best used heavy equipment
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What are the things I need to know before buying used heavy equipment?
Price of new materials and machinery is increasing at a very rapid rate. People are opting to buy used ones instead, especially for construction companies.
Heavy construction equipment include:
– asphalt paver
-dump truck
-motor graders
– wheeled loaders
Of course, you also need to have some spare parts in case of any incidents or emergencies.
Purchasing used items can be tricky. You can never be sure about the actual condition of the product or assess its fair value. But, there are still benefits in buying used construction equipment.
Benefits include:
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Buying the latest machines at a better price
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Reduced repair costs
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Less insurance rates for all type of heavy machines used on your construction site
Overall, the main gain you get from this deal is money savings. If you are to compare new equipment with used heavy machinery in Dubai: the price you’ll have to pay is way less.
The decision becomes clear to go for used equipment considering financial gains. But ,there are other issues that a buyer must consider when selecting used equipment. What are the main areas of concern you need to focus on?
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Equipment with hidden flaws
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Ownership disputes
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Unreliable agreements act
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Bad seller reputation or Seller seems sketchy
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Stolen items
Here we unravel some of the potential issues a buyer might face when buying such assets:
What are the main things to look for when buying second-hand ?
1- Know the Seller
It is better to research the seller before purchasing used equipment. Weather the buy-in is online or physical, the research is mandatory. It is a good idea to check other customers’ online reviews and ratings. This will give a guideline for the seller’s reputation and integrity.
You can research the : owners, experience in this field, business details, and infrastructure.
Several platforms have data about them. They can give you insight into their financial dealings and default status.
Banks and other financial institutions also track these companies. This gives you extra help in getting more insights. As a buyer, it is significant to know the seller’s integrity and uprightness. As transactions for those type of products involve a lot of money.
So, be careful not to be duped after making the payment to the seller.
2- Disputed or stolen items
Buying used equipment means there will be risk involved. The risk of the items being either having ownership disputes, bank liens, or stolen. So, it is not only about checking the background of the seller, but also about the equipment that you plan to buy.
When a buyer wants to finance the sale of used heavy machinery, he needs to assess the potential risk. The risk includes ownership. Even though bank does a background check on the asset as they are taking an exposure, you should do the same.
So, consider checking the following details:
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The equipment, truck, crane, and loader identification number from appropriate websites. The information available gives the ownership details.
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The original equipment invoice gives the details of the first owner of the equipment. From there, you can easily find out whether there is a lien from a financial institution.
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Police check: Check with the police department if they can confirm that the asset is not stolen. You should have proof that the material belongs to the rightful owner.
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Insurance check: Check the equipment insurance to know if all details match.
Also, see if there was any serious accidental damage earlier. You can check that with the insurance company if they had settled a claim.
3- Check for damaged, changed, or lost item in transit
Another risk potential is with the materials shipping. Materials handling after shipping is usually the responsibility of a third party. Equipment carries the risk of damage, internally, or externally. The damage can either be okay or can ruin some pieces of the tools shipped. If that’s the case this can cost you more money to fix a problem you didn’t sign up for.
This is why it is best to ask your buyer what shipping companies he is dealing with. Also ask on how the transportation process happens. How do they ensure the safety of the instruments
Also, what if the delivery was a different model after you made the payment ? or what if it was damaged in transit? To avoid this, the buyer must have proof of purchase at every step and avoid any disputes or scams later.
4- Ensure clear legal proof of ownership
Some sellers may hide that the equipment is under lien and there is still a balanced loan left to be paid to the bank.
If the equipment sold by the seller is financed, then the lien information will be available.
In the case that there’ still money due to the bank, check with the concerned party on how much money is left. If the amount is reasonable and you want to continue with the purchase, negotiate with the seller. Ask them if they can adjust that amount from the agreed purchase price of the used equipment.
5- Know the equipment before you buy
The legal ownership of the equipment was previously discussed. Now it’s time to check the technical aspect of the machine. These equipment must be checked physically to assess its condition.
If you don’t have the technical knowledge, consider hiring an expert. Technical knowledge include the all know-hows on the specific machine.
Expert mechanics know the areas to inspect. They can also do a test drive to check the engine and internal condition of the equipment.
Used Heavy Equipment is a complex piece of machine and expensive too. It is better if you follow the above tips before closing the deal with the seller. Here are some articles that we think might interest you: