What to Consider When Buying Used Construction Equipment - Gregory Poole (2023)

Purchasing machinery can be a massive undertaking — especially if you are in the market for used What to Consider When Buying Used Construction Equipment - Gregory Poole (1) construction equipment. Used equipment is a cost-effective option, but you need functional equipment for your project. Used construction equipment is often considered to have more risks and unknowns than new machinery purchases do. To reduce these risks and find a fair deal, consider these tips for buying used heavy equipment. There are several factors to consider when buying used equipment that will help you make the right decision without wasting your time and costing you unnecessary amounts of money.

1. Current Seller’s Reputation

The first factor you want to check is the seller’s information and reputation. Inspecting the individual or company who is advertising the piece of equipment is essential because this could give you insight into the nature of the transaction. If they are a reliable seller and have testimonials or an established presence in the industry, it will be easier for you to trust their specs on the machinery.

If the seller is difficult to find, put a little effort into learning their identity. See if you can locate information from past customers or how long they have been selling used machinery. The integrity of the seller will give you more confidence in making the purchase.

2. Buyer and Seller History

Buyer and seller history will inform you on how to buy used heavy equipment. The machinery’s past changes in ownership will partially show you the frequency of use and the amount of time it has been circulating. Also, the reputation of previous owners may show you how well the equipment was maintained.

What to Consider When Buying Used Construction Equipment - Gregory Poole (2)

While you are researching the machinery’s past ownership, also check with the authorities to ensure that the machinery is not stolen. Take the product identification number and serial number to the police department to avoid purchasing stolen equipment. Certain online services can check whether or not your equipment has been involved in theft or damages. The National Equipment Register is one entity that performs these checks.

If the equipment has liens associated with it or has been seized, then ownership of the equipment may be more complicated than you want. Do a lien search because an issued statement from the owner considering liens will not give you maximum legal protection.Check if equipment has liensagainst it by finding the financing statement from the Uniform Commercial Code. This information is posted so you and other used construction machinery buyers can confirm lien information. There may be a history of liens against the equipment, but this will notify you on existing liens in particular.

If a piece of equipment has been seized, be wary of its condition and if it has received proper maintenance. Because seized items have been removed from buyers who could not pay in full, the likelihood that the equipment has not had regular upkeep while being held is high. However, this is not always the case.

3. Condition Description That Matches Inspection

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If you inspect the equipment or have an expert inspect it and find that there are discrepancies in the seller’s description, avoid this purchase. Especially if the discrepancies are significant features or issues, you should not purchase the machinery. Any signs of dishonesty or lack of thoroughness can put you on the losing end of a deal.

If you are familiar with howexcavatorsor other machinery look in the different stages of their lifespan, then you can inspect the equipment yourself. Inspect the parts of the equipment that are replaced most often to judge if the equipment has received new parts recently or will need immediate replacements. Despite minimal wear and details that may be too minor to mention, the seller’s description should come out as accurate in comparison to your inspection.

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However, if you are not confident in your ability to inspect, bring an expert or a trusted colleague who will be able to assess the state of the machinery. With used equipment, you may be willing to accept its condition if the price and length of your project match up. Examine places that receive the most abrasion during use, like the undercarriage. If the seller’s description and you or your expert’s assessment do not agree, you must make the call on whether this purchase is still worth making.

4. Listing Price

Judging an appropriate listing price when buying and selling used construction equipment includes many considerations. The listing price should not be at the same level as a new piece of equipment, but it should represent the worth of a machine based on its operating time, age and past maintenance. On the other hand, the listing price should not be dangerously low, because this is suspicious, too. The seller that you are purchasing from must sell the equipment in a limited time span to get the best value, so consider the depreciation and salvage value.

Salvage value and depreciation are two critical factors in calculating the potential cost of used equipment. For instance, most used equipment only retains about50 percent of the valueof the machine when it was placed on the market after the first fourth of its lifespan. As time goes on, the value of a machine declines, although many still consider well-maintained machinery to be advantageous despite the age.

5. Maintenance History

Maintenance factors to be considered in purchasing used equipment are the frequency of care, major repairs and current replacement needs. The records of damages will give you insight into the kind of work the machinery has been used for in the past and if it has sustained too much heavy construction work to continue being useful. If more serious or reoccurring damages have happened to the equipment, then this may steer you away from the purchase.

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If abackhoe loaderhas regularly needed repairs for the loader arms and continues to have cracked paint and metal in that area, you will want to know this for your projects. Before purchasing this machinery, you can factor in the downtime you may need to restore the equipment by checking past maintenance details. Knowing what to expect for a piece of equipment can also increase safety when you and your associates use the machinery.

If machinery has a regular record of careful maintenance, then you should experience fewer operational problems. Cleaning, inspections and greasing are all essential maintenance practices for many kinds of construction equipment. Did the previous owner or owners consistently perform these duties? A well-maintained machine will continue to complete efficient work for your needs.

6. Operating Hours

The amount of time that machinery was used is a significant factor in its further usefulness. Age and maintenance both affect how substantial operating hours are for equipment. Owning a piece of equipment for a long time and minimally using it will be more expensive, so you may come across an owner who no longer wishes to go on with their current expenses. However, little use and pristine maintenance practices can bebeneficial for the buyer.

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Machinery used full time will wear down more quickly and require replacement parts more often than part-time use. The former owner should be able to estimate the average amount it was used per week, which should give you insight into the continued lifespan of the equipment. Although age constitutes such a large portion of the value of a machine, annual use is a critical factor in the worth of construction equipment.

7. Signs of Poor Maintenance

Among the tips for buying used construction equipment, spotting signs of poor maintenance will protect you from bad investments more than most others.

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Expect wear and tear on used construction equipment, but do not ignore signs that will lead to major problems and delays for your projects. Loose pins and questionablebushings are some indications that the previous owner neglected maintenance. These may break in the future and cost you time and money to tend to. There are material considerations in bushings that may make replacement more difficult. Tend to these loosened parts quickly, because they can become worn sooner than you expect.

Check the brakes on the machinery and the tires to ensure that they meet your expectations. Essential parts of the equipment like these should be functional and not worrisome if you are about to make this investment. If tires on a used skid steer loader are not in good condition, you can replace them, but this will be at your own cost. The seller may rate them good or fair, but size up the pros and cons beforepurchasing a used skid steer loader.

If rust or cracks are present, this could be evidence of poor maintenance. Cracks on the exterior that may seem harmless could be a precursor to infrastructural cracks in the machinery, so compare the maintenance records with these signs to weigh the possibility of serious damage.

8. Fluid Levels

The various fluids of the equipment can also reflect the upkeep or warn of future difficulties. As you are inspecting the equipment for other signs of maintenance, check each fluid level to get a more well-rounded understanding of the machinery’s shape.

Low fluid levels show a lack of continual management. If the hydraulic fluid or transmission fluid have not been maintained, the machine may not run smoothly or transfer heat effectively. Depending on how old the machines are or how much they have been run, certain maintenance needs may not be necessary yet.

Dirty fluid also is a sign of danger for the equipment. Most essential fluids will simply turn a dark brown color if they are contaminated. Other fluids look cloudy or have a particular smell when they need to be renewed or changed out. Ensure that brake fluid is not contaminated with water or similar harmful substances.

If fluids are leaking and leaving small pools of residue underneath the equipment, this is evidence of a larger complication. This could also explain why liquids may be extremely low. Do not only check underneath the machinery, but also look over the cylinders. Leaking coolant or lubricant shows that this used machine may need extreme maintenance.

Any signs of mixed fluids show underlying issues, too. If coolant and oil are mixed together in either fluid chamber, an internal breach has most likely opened. Engine damage has potentially already happened due to this, or it will soon follow. Invest in machinery that is free from fluid mixture, leakage, reduced levels and contamination.

9. Presence of Welding

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Marks of additional welding not performed by the original equipment manufacturer (OEM) may be signs of weakness. Welding is typically substandard to the machinery’s initial material. Adding to the metalwork done in the manufacturing facility is not beneficial. Machines withoutwelded repairsand evidence of breakage are better options than those that do have this.

Check common places where cracks occur, like in the loader arms or buckets of construction equipment. If there are minimal welding spots, then you may still choose to purchase the used machinery. However, if the amount of welding is extensive, opt for a different piece of equipment that will be more durable and last longer than welded machines.

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Mechanized or automated welding is superior to manual welding, and anywelding done to the machine partspost-manufacturing would be manual. The few deviations that do occur in automated welding have a correction process that significantly increases their durability. Considerable welding is a reflection of extreme use, as well, which means you would not get as much work out of your used equipment.

10. Opportunity to Test

Having a chance to test drive the equipment will allow you to check the engine’s sound and the standard capabilities of the machinery. If your seller is willing to let you run and examine the equipment, it is probably a genuine and favorable offer.

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If you are familiar with the way the machinery should sound, drive and haul, then testing it will allow you to flush out any other problems you may have missed while checking the exterior of the machinery. Any engine problems that keep you from running it before purchase should not be passed over. No matter how attractive the deal seems, if the engine is not functioning the way you will need it to, refrain from buying the equipment.

Abnormal noises should make you question the shape of the equipment. Any unusual hiccups or coughs from the engine are suspect, and you should be wary of purchasing if the equipment is exhibiting these signs. If the seller is upfront about the machine’s defects and you still feel persuaded to buy, then you understand the risks involved with the purchase.

Perform basic maneuvers that you will need to do once the machinery is yours, so you know it is up for the job. If the equipment manages these actions, you can feel secure in your decision to purchase.

11. Type of Exhaust

Watch for the kind of exhaust the used machinery may give off while you run it or test drive it. The combustion chamber could contain a defect or be reacting poorly due to lack of regular care. Steam and water emissions are an expected kind of exhaust, so do not panic if white vapor escapes the equipment sometimes. Cold starts with different colors of exhaust will show possible malfunctions in the machine’s system.

A different kind of white exhaust, separate from the steam and water type, oftensignals the presence of coolant. This can harm the engine, so pay attention to this type of exhaust. The way to tell the difference between coolant leakage and steam is that the white exhaust will persist even if the machine has been warmed up.

Black exhaust upon a cold start is typically due to too much gas is being burnt in the wrong way. This is only detrimental if this continues to happen, and it can also show that the combustion chamber needs more air or that a fuel component is not functioning. Blue smoke, which is much rarer, is the result of oil burning in the engine.

12. Model Type and Abundance of Replacement Parts

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Used equipment can be older, so be careful to choose one that still has replacement parts available. Select a model of machinery whose manufacturer still carries the parts that you suspect will wear down most quickly. Whether you need a used cylinder, carburetor, steering valve or another piece, be sure that you can make repairs on your used machinery.

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If a certaintype of telehandlerorarticulated truckis more widely used than others, you will be able to find the parts that you need for maintenance and restorations. This leads to less downtime when a problem does arise because you can locate the piece quickly, have it delivered sooner and be up and running again shortly. To prevent hold-ups, find equipment and parts that will be readily available.

More resources areavailable for popular types of construction equipment, as well. If you are unsure how to proceed with repairs, advice from local dealerships or machinery experts will be easier to obtain. It is likely that others will have dealt with a similar complication and are ready to share the answer with you.

13. Proper Documentation

When preparing to make the transaction, ask the seller to provide documentation of the sale. For legal reasons, you will want to retain proof of purchase. To make sure you and the seller are both on the same page, confirm the purchase with a verifying document and pay with a check or alternate method that can be tracked. Once you have obtained a receipt and the machinery, the transaction is now acknowledged and kept by both parties.

You will also have the machinery’s title transferred to you if you are paying the full amount for the equipment up front.If you are paying the price over time, you will eventually receive the title and can expect that document once you’ve paid off any loan.

Double check the documentation that states the absence of liens against the equipment. This means you should line up the seller’s information on the invoice of initial purchase. Verifying your purchase from a seller or company will also assist you if you decide to sell your used equipment at a future time and need documents to show other buyers.

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What to Consider When Buying Used Construction Equipment - Gregory Poole (9)

With over 65 years of experience and13 locations across eastern North Carolina, Gregory Poole is a part of a strong dealer network and can distribute the parts you need, often within 24 hours. We also support our customers after sales with valuable product support.Gregory Poole offers the used Cat construction equipment that will get your construction projects finished.

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FAQs

What are the advantages of using equipment in the construction? ›

They help increasing the rate of output through work progress with the best effective and efficient methods. Reduce the overall construction costs especially for large contracts. Tasks which are too heavy or too delicate for human muscles to do can be done easily by a machine or equipment.

What are some factors that affect the preferences of construction equipment buyers around the world? ›

Economic factors: Economic considerations such as the cost of owning the equipment and operation and fuel costs are some of the most important factors that play a deciding role in selecting the equipment. Besides, consideration over resale value is also very important.

What are the factors you need to consider when buying equipment? ›

Below are six key factors to consider before you purchase major equipment.
  • Research. ...
  • Check the supplier's reputation. ...
  • Assess your needs. ...
  • Consider your budget. ...
  • Maintenance Cost. ...
  • Depreciation Rate.

What is the importance of using equipment properly? ›

The Importance Of Proper Manufacturing Equipment Service

Prevent unplanned downtime which can be costly and interrupt the manufacturing process. Avoid the need for expensive repairs due to negligence. Keep equipment running without interruption to ensure that projects get completed on time and on budget.

What is the importance of proper use of equipment? ›

The most important thing in any workplace is safety. With that in mind, all equipment should be safe to use at any time. If not properly maintained, your equipment could break, wires could split and parts could fall off and go missing. This could ultimately mean that your equipment is too dangerous to use.

What are the factors to be considered in constructing? ›

Factors concerning he before construction of the project”
  • Availability of skilled labour.
  • Availability of cheap labour.
  • Transportation facilities.
  • Availability of local or natural materials to reduce construction and transportation costs.
  • Rate of population growth and urbanization in that area.
20 May 2014

What are the main factors considered when selecting a material for construction purposes? ›

The following are some factors that one should consider while deciding construction materials:
  • Cost. When looking for various construction materials, one will realize that the rate varies extensively. ...
  • Climate. ...
  • Durability. ...
  • Availability. ...
  • Sustainability. ...
  • Maintenance. ...
  • Aesthetic Appeal. ...
  • Performance.

What are the 5 factors people consider when buying a product? ›

In a general scenario, we've got five main factors that determine consumer behavior, i.e these factors regulate if a target customer purchases a product or not. These factors are namely Psychological, Social, Cultural, Personal, and Economic factors.

What is the most important consideration before purchasing new equipment? ›

Some would argue that price is the most important factor, but a major consideration should be if the equipment's productivity can outweigh how much the equipment costs in the long run. A machine's return of investment and expected length of optimal performance are key considerations when making an equipment purchase.

What are the 3 most important things that you might consider in buying certain products? ›

Expert-Verified Answer
  • the purpose of the product- whether the product has any purpose in your life or not.
  • lonevity of the product- how long will the product last.
  • usage of the product- how often are you going to use that product.
  • clutter and chaos- will that product lead to any problems.
1 Feb 2019

What equipment is used in construction? ›

Types of Heavy Construction Equipment

Dragline Excavator. Bulldozers. Graders. Wheel Tractor Scraper.

Why is used construction equipment so expensive? ›

Supply chain constrictions, industry demand for certain types of equipment and a construction market that's proven resilient are all leading to a current strong demand for used equipment, according to an industry panel.

Why is it important to check equipment before use? ›

The purpose of an inspection is to identify whether work equipment can be operated, adjusted and maintained safely, with any deterioration detected and remedied before it results in a health and safety risk.

What should be checked to ensure any equipment being used is fit for purpose? ›

You must check it: has appropriate conformity marking and is labelled with the manufacturer's details. comes with a Declaration of Conformity.

What are the 6 considerations that needs to be taken in choosing your equipment? ›

Factors To Consider When Purchasing Equipment for Your Business
  • Define Your Needs. Any business needs to define its needs before buying equipment. ...
  • Cost. The cost of something is a good indicator of its value and efficiency. ...
  • Level of personnel training. ...
  • Maintenance cost. ...
  • Quality. ...
  • Technology. ...
  • Power needs. ...
  • Profitability.
8 Mar 2021

What should you consider before construction? ›

Proper Planning Can Carry a Project to Success
  • Identify the Type of Construction Project. Different projects have different procedures that need to be followed. ...
  • Choose the Right Materials. ...
  • Decide Whether or Not You Need a Contractor. ...
  • Budget. ...
  • Set a Timeline.
26 May 2022

What are the 3 best properties in selecting a good construction material? ›

10 Factors to Consider When Choosing Building Materials
  • Ease of Installation. The first important factor to consider before purchasing building materials is the ease of installing them. ...
  • Recyclability. ...
  • Budget. ...
  • Availability. ...
  • Ease of Maintenance. ...
  • Personal Preferences. ...
  • Durability. ...
  • After-Sale Customer Support Service.
3 Mar 2022

What is the most important factor in the construction industry? ›

Operating Management

The ability to manage the business efficiently is the most important factor, particularly to deal with tightening competition. The ability to reduce costs and optimize efficiency are highly incorporated in the rating consideration.

What are the 7 factors to be considered in selecting an ideal site? ›

Industrial site selection – 7 Factors to be considered
  • Location accessibility and infrastructure.
  • Zonal Classification.
  • Site cleaning & clearing.
  • Topo and geotechnical survey.
  • Sewage and effluent discharge.
  • Power and water supply conditions.
  • CNG, LPG, and fuel oil supply conditions.

What are the 3 factors to be considered in site selection? ›

Four Important Factors for Site Selection
  • Accessibility. Any location you consider should be easy to access. ...
  • Competitors. Check for compatibility with nearby stores when researching a site. ...
  • Parking. Except for cities like New York and Chicago, parking availability is very important for your business. ...
  • Costs.

What are the key factors to be considered before deciding the location? ›

Six factors to consider when choosing a business location
  • Accessibility. Does your business rely on frequent deliveries? ...
  • Security. ...
  • Competition. ...
  • Business Rates. ...
  • Skill base in the area. ...
  • Potential for growth.
16 Oct 2017

What are the things to consider before buying or using products? ›

10 things to know before buying products or services
  • Understand marketing material and contracts: ...
  • Prices must be accurate: ...
  • Watch out for exclusions: ...
  • Follow instructions: ...
  • Beware of on rolling over contracts: ...
  • Beware of grey goods: ...
  • Read the rules of competitions: ...
  • Check the sales record or till slip details:

What are 4 factors to consider before buying a product? ›

A customer is surrounded by four key factors when considering any purchase: the product, the price, the promotion and the sales channel.

What are four 4 factors that affect purchasing? ›

In general, there are four factors that influence consumer behaviour. These factors impact whether or not your target customer buys your product. They are cultural, social, personal and psychological.

What are the 5 things that you think a buyer needs to consider when choosing which items to purchase for a hospitality operation? ›

(1) purchasing the appropriate quality, (2) purchasing at the right price, (3) purchasing in the right amount, (4) purchasing at the right time, and (5) purchasing from the right supplier, who provides the needed supplier services.

What are 3 key factors that you need to consider to make your product appealing? ›

5 Key Ways to Make Your Product More Useful or More Appealing to Customers
  • Vary performance -- make more (or less) powerful.
  • Improve quality.
  • Add new capabilities without adversely affecting ease of use.
  • Provide a wider range of products.
  • Personalize.
1 Nov 2016

Which equipment is used for concrete? ›

Concrete Mixer

As the name suggests, this equipment mixes cement, aggregates and water to create concrete. It may have the same function as a batching plant but a concrete mixer is usually a single machine.

How do we select the best machinery? ›

Find the latest technology models with the best features, compare with other brands and chose any equipment as per your needs. Check all the technical data, from the design to machine adjustments, vibrations, points of wear and noise of the machine for easy handling of the machine.

How do you price used equipment? ›

By doing market research and comparing the prices that similar new or used equipment has sold for, you can get an idea of the final price your equipment could fetch. Equipment with a more active market will give you the best estimate.

How do you estimate used equipment? ›

Many times the best way to find out the real value of your machinery or equipment is to source a used machinery dealer that is actively selling like equipment. The dealer will be able to tell you the market value today as opposed to just someone's asking price online.

How much should you sell used equipment for? ›

50-30-10 RULE: Near-to-new items should be sold for 50 percent of their retail price; slightly used items at 25-30 percent of retail; and well-worn items at 10 percent of retail.

What are the four advantages of using proper tools equipment? ›

Here are the main four:
  • Better performance. Often, power tools can perform tasks that are impossible for hand tools to complete. ...
  • Speed and efficiency. ...
  • Precision and accuracy. ...
  • Convenience.

What are the advantages of safety equipment? ›

PPE, or Personal Protective Equipment, helps prevent staff emergencies on the job due to inhalation, absorption, irritants, or other prolonged contact with a cleaning chemical. This actively reduces accidents, improves the health of your employees, and makes for a safer, secure work environment.

What are the importance of construction tools and equipment? ›

Proper utilization of applicable equipment contributes to the safety, frugality, quality, speed, and timely completion of the design.

What are the advantages of material handling equipment? ›

Benefits of Material Handling Equipment
  • Save Money. ...
  • Maximize Space. ...
  • Decrease Product Damage. ...
  • Improved Customer Service. ...
  • Increase Work Efficiency and Productivity. ...
  • Reduce Accidents in Facilities. ...
  • Attract employees and Improve Worker Satisfaction.
29 Oct 2020

What is the importance of having correct and reliable hand tools? ›

Safe tool use contributes to a safer, more efficient work environment. Misusing tools is not only dangerous, it shows a lack of understanding of tool safety and a lack of respect for those around you. Also, if improper tool use causes an accident, downtime will impact the entire job.

What are the advantages and disadvantages of using hand tools? ›

Advantages & Disadvantages of Hand & Power Tools
  • Hand Tools - Advantages. Hand tools offer the advantage of precision. ...
  • Hand Tools - Disadvantages. The primary disadvantage of hand tools is the time that it takes to complete simple tasks. ...
  • Power Tools - Adantages. ...
  • Power Tools - Disadvantages.

What are the 3 biggest factors when selecting protective equipment? ›

7 Most Important Factors for Selecting PPE
  • Climate. One of the first things you need to consider when selecting the right PPE is the climate that people will be working in. ...
  • Threat Level. ...
  • Balancing Comfort & Safety. ...
  • Presence of Vehicles & Forklifts. ...
  • Sizing & Proper Fit. ...
  • Industry. ...
  • Cost of PPE.
8 Nov 2019

What are the 10 equipment safety tips? ›

10 Equipment Safety Tips for Incident Prevention
  • Blind spots. ...
  • Communication. ...
  • Seatbelts. ...
  • Mounting and Dismounting. ...
  • Loading/Unloading Equipment. ...
  • Overhead and Underground Hazards. ...
  • Lock-out/Tag-out. ...
  • Load Limits.
19 Jul 2017

What is the importance of using site safety equipment? ›

Also called PPE (Personal Protective Equipment), it lessens the likelihood of injury, illness, and legal issues, and ensures a safe, happy working environment for all.

How do you maintain construction equipment? ›

Routine maintenance can include:
  1. Lubricating machinery.
  2. Oil changes or filter changes.
  3. Safety inspections.
  4. Replacing deteriorating parts.
  5. Tire inspections.
  6. Pressure tests.
  7. Checking transmission fluid levels.
  8. Checking engine coolant levels.
28 Apr 2021

What are the principles of equipment handling? ›

10 key principles of material handling systems
  • Planning.
  • Work.
  • Standardization.
  • Unit Load.
  • Ergonomics.
  • System Integration.
  • Automation.
  • Space Utilization.
10 Mar 2021

What is material handling simple words? ›

materials handling, the movement of raw goods from their native site to the point of use in manufacturing, their subsequent manipulation in production processes, and the transfer of finished products from factories and their distribution to users or sales outlets. materials handling.

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