Business owners often purchase brand-new equipment when a machine they own fails. It’s always best to consider used equipment, as buying used can lead to significant savings. However, before buying any equipment, a buyer must consider certain things. Doing so ensures they get equipment that will benefit their business rather than wasting money.
Know What the Business Needs
Before making any purchase, know what the business needs. This holds for both new and used heavy equipment. Consider the size of the equipment, its features, attachments, and more. Buying used opens more options, thanks to the lower price, which is why many people choose this route. However, always know the exact requirements before buying new or used to make the right purchase for the company’s needs.
Equipment History
Research the history of the equipment. Skip this step if purchasing new, but never overlook it when buying used. Make certain there are no liens against the equipment and that the person or business selling the machinery is the owner. Ask to see the title to learn who owns the machinery. Keep in mind a title is only transferred once the buyer has made payment in full.
Conduct a lien search to check for liens. Furthermore, only purchase from reputable sellers. Contact the local police department and provide the serial number or product identification number of the machinery and ask if it has been stolen. The police department should be able to provide this information.
Check Fluids
A purchaser won’t need to be as concerned about fluid levels when buying new. However, if buying used, examine all fluids to get a better picture of the equipment’s overall condition and its maintenance history. If the fluids are low or dirty, the owner didn’t keep up with basic maintenance tasks or the equipment has a problem and needs repair. Avoid purchasing this equipment, as it could need repairs soon.
Hours Used
When purchasing new equipment, a buyer shouldn’t need to worry about operating hours. However, when buying used, this is a consideration. If the machine is pushing its upper limits, look elsewhere for a better deal. If this is the only piece available, do a cost-benefit analysis to determine if the additional maintenance needed to keep the machine running is worth it. However, keep in mind a well-maintained machine that has 10,000 operating hours on it could be a better deal than a poorly maintained machine that only has 1,000 operating hours.
Visual Inspection
Always do a visual inspection of both new and used equipment. When buying new, look for any defects that may help reduce the price. A seller might drop the price for scratches and other blemishes incurred during the transport of the equipment. For used equipment, check for rust, hairline cracks, and other damage that may contribute to a breakdown of the machinery. Although the repairs may not seem extensive, consider the possibility of downtime to determine if the purchase is wise.
Individuals will find there are benefits to buying both new and used. All factors should be considered when determining which option is best for the given situation. Using these tips will be of great help in determining if a purchase is a wise one or if it is best to continue looking, so always keep them in mind when shopping for equipment.
