How to buy used compact equipment
Before buying a pre-owned machine, give the unit a complete over-once, remember, this is construction equipment. Abuse and normal wear and tear are two different things.
We’re in a unique situation right now. The economy has taken its toll on many contractors, but for those who do have money to spend, now is the time to invest — and with the surplus of used equipment available, you’ll get a lot more for your money when investing in previously owned. Contractors can take advantage of lower equipment costs to tailor their fleet to the needs of today’s market. In the long run, this means having the ability to bid on more jobs at a more competitive price.
To determine if now is the right time to invest in “new used” equipment, do a simple acquisition cost vs. utilization rate analysis. Some questions to consider are: Will this piece of equipment allow you to do more specialized jobs? Will it allow you to do your current jobs more quickly and efficiently? Will having this piece of equipment allow you to do jobs that your competitors are not capable of? With more contractors seeing the value in purchasing used equipment, many major manufacturers are seeing the value in helping contractors make that purchase. Terex, for example, is offering retail financing options or a cash back option on all Terex and non-Terex used equipment listed on the company’s website — terexused.com.
As long as the cost of owning and operating older equipment is affordable, contractors will continue to rely on older and/or remanufactured machines and defer the cost of buying new. Although the price tag on used equipment may be appealing, there are certain situations when the deal may just be too good to be true. For example, the major refurbishing points on a wheel loader are the piston/cylinder liners, bearings and fuel system. If buyers do their homework, they should have an idea about what kind of condition a machine should be in, in order for it to run properly. Then they need to decide at what point the repair costs will exceed the budget. A buyer never wants to put more money into a piece of equipment than they will get out of it.
By Stu Thompson, Product Service and Support Manager, Terex Construction Americas
