Information you need from dealers you can trust
May 1, 2018
Is Consolidation Good for Used Equipment Buyers and Sellers?
Yes and no.
Take Ritchie Bros. as the most obvious example of an aggressive consolidation strategy. In recent years, they acquired several smaller auction houses. Then, last year, they purchased fellow industry powerhouse IronPlanet. As a used equipment buyer and seller, you may see pros and cons to these developments, depending on your specific situation at a given time.
April 1, 2018
Take Charge When Negotiating Your Best Deal on Used Construction Equipment
Whether you’re buying a new car, used car or working with a professional who sells used construction or mining equipment, you’re dealing with someone who sells all the time. They want to treat you well, but, of course, they also have an agenda — making money for their dealership. It’s their job. Fair enough.
Your job, of course, is to secure the best used equipment possible for your investment — equipment that will be reliable and contribute to your profitability. Fair enough.
Let’s rumble … with valuable tips that can up your negotiating game
March 1, 2018
Buying Used Equipment Makes Sense in Any Economic Conditions
“Better save some money for a rainy day.” We’ve all heard it — and, at our best, we try to live it in our business and personal lives. That’s because we’ve all seen a construction industry peer or two (or more) overextend themselves buying brand new equipment while the economic sun is shining, only to pay the price when grey clouds return.
All in all, there are upbeat projections for the construction market this year and beyond. According to the Fails Management Institute’s Construction Forecast (FMI Construction Forecast: Direction for 2018)
February 1, 2018
Dig into the details when buying a used excavator
The last thing you want to do is invest serious money in a second-hand excavator and detour it from its first paying job — so you can make repairs on your dime after the fact. Ouch.
Of course, warranties or limited coverage for used equipment will vary. But, whoa! Let’s back up. The best place you can start before buying is a detailed inspection that gives you peace of mind before you buy.
January 1, 2018
In-Depth, Well-Researched Overview of Used Equipment Market for Contractors Ready to Buy … Now or in the Future
Your time is always limited, but don’t miss out on reading the September 2017 issue of Equipment World magazine. Their staff’s Used Equipment Report, “Regional demands drive used construction equipment prices: Part 1 of a Special Report,” (the first article in a five-part series) is jam-packed with valuable information that can give you a timely overview of used equipment supply and demand and prices from coast to coast, as well as buying strategies.
December 1, 2017
Use Three Key Steps for a Used Dump Truck Inspection
New dump truck prices and sticker shock go hand in hand for most buyers. It’s quite an investment — and one that can take a long time to recoup. Conversely, if you’re planning to take the popular route of buying a quality used dump truck, a solid and proven inspection plan can help ensure you save thousands vs. new, while purchasing a reliable, hardworking vehicle with many years of service left to give.
Start with these simple steps.
November 1, 2017
Used Asphalt Equipment Market “Feeling” EPA’s Tier 4 Mandates
New equipment sales have slumped the last couple years as a result of the EPA’s Tier 4 final emission regulations, resulting in stronger demand for quality, low-hour Tier 3 or older machines — inventory that’s getting harder to find.
“Large asphalt pavers aren’t a commodity item so paving contractors often hang onto their machines longer than in other construction segments,” said Mark Pentz, IEDA member and owner of Calvin Group, Inc. (Windsor, Colo.), which specializes in buying and selling used asphalt equipment. “A lot of paving contractors are choosing to fix what they have instead of trading it in or selling the machines. In turn, this has driven up the price on used asphalt pavers.”
October 1, 2017
Consistent Maintenance and Record-Keeping Key to Equipment’s Residual Value
When it’s time to trade in or sell a piece of your equipment, documented preventive maintenance and repairs you’ve performed on that equipment will pay big dividends in the price you receive.
The OE manufacturer’s recommended maintenance intervals provide the road map — clearly spelling out which services need to be performed and when, typically based on machine hours. Your records can be kept in a simple notebook or with construction equipment maintenance software. The latter will give your log a more professional, serious-about-maintenance look when you meet with a potential buyer.
September 15, 2017
Rethink Your Used Equipment Search Process
One of the biggest mistakes contractors make when hunting for used construction equipment is doing all the upfront legwork themselves. Used equipment online search sites, auctions and the weekly trader magazine are where many start their searches. That approach is like shopping for a new house without a realtor — you end up wasting a lot of valuable time, run a higher risk of being scammed and, in the end, likely don’t save any money.
If you have been guilty of wasting your time, and exposing your company to unnecessary risk when shopping for used machinery, it’s time to change your ways. Your search process should start with enlisting the support of a quality independent used equipment dealer. A reputable dealer will save you time, as well as will help ensure you get exactly what you’re looking for at a fair market value price.
August 15, 2017
What Drives Pricing for Used Construction Equipment
Whether you’re looking to buy or sell construction or mining machinery, you probably have a few questions about what drives used equipment pricing for the industry. Similar to the automotive industry, the average price you can expect to receive when selling or what you can expect to pay when buying is dependent on a range of factors. And since there is a much smaller group of buyers and sellers in the industry, you can expect to see more dramatic shifts in pricing depending on the type of equipment, along with several economic factors:
August 1, 2017
Searching Online for Used Construction Equipment: How to evaluate a listing
Do you remember what searching for used construction equipment was like before Google? Your search would begin with a magazine that showed up in your mailbox once a month or a trader you picked up at a gas station. As you flipped through the publication and found a machine you liked, you would then call the seller to see if it was still available. That’s when you’d have a chat with the seller to learn more about the machine — sometimes the seller would even mail out a few Polaroid pictures for you to “see” it. From there, you would decide if it was worth your time to look at the machine in person. If you decided to buy the machine, you still had to line up transportation and financing…and another trip to the seller’s location. By the time it was all said and done, you probably invested well over 40 hours of time into the transaction over the course of one or two months.
Today, buying used equipment is certainly easier, but you still need to know what to look for online to ensure you’re not wasting your time or being scammed.
July 15, 2017
Warranties on Used Construction Machinery
In today’s economy, warranties and extended warranties are common add-ons for the things we buy. At the electronic store, you’ll often ask at checkout if you want to extend the manufacturer’s warranty for a small fee. When you purchase a new or used car, the financing person will often offer to finance an additional warranty with your purchase, which is usually accompanied by a list of things that could go wrong with your car and how much it will cost you out of pocket…it’s a bit of a scare tactic.
Now, new warranty options have made their way into the construction equipment market, which may leave you with a few questions about your options and whether or not they worth the expense?
June 15, 2017
Predicting Future Value of Used Tier 4 Heavy Machinery
The Environmental Protection Agency (EPA) Tier 4 mandate has driven up the costs of new machines. The switch from mechanical engines to what’s on new machines comes at a substantial cost to manufacturers and contractors buying new equipment.
The hope for anyone buying new Tier 4 machines is that the additional expenses will be worth it when they decide to sell or trade these units in the future. However, potential changes being made to many EPA regulations makes predicting the future for Tier 4 machines more challenging.
June 1, 2017
Trust is Vital when Buying Aerial Equipment
Aerial equipment is one of the most highly regulated segments in the construction industry. These regulations are in place because unlike other construction equipment, aerial equipment is lifting people and heavy material several feet into the air. If something goes wrong with a machine, it could have life-threatening consequences. It’s vital that you make sure the machine you’re buying is in good working order, which is why who you buy from is important
May 15, 2017
Buying Used Machinery is a Better Value than Renting
Renting is growing among contractors worldwide, and for good reasons — the increasing costs of buying new machinery, as well as the economic uncertainty for many sectors of the construction industry, is creating a challenging environment for contractors to navigate. By turning to rental, contractors only pay for equipment when they are using it and do not have to pay for idle machines when they aren’t working. Sounds like a pretty good deal — right?
Well, the truth is that flexibility comes at a price that may or may not save you money over time. In many instances, buying used machinery will keep your equipment investment low, giving you higher returns.
May 1, 2017
Don’t Get Scammed When Buying Construction Equipment
From robo-calls to spam emails, there are a lot of dishonest people out there looking to make a quick buck off you. Many of these scams are nothing more than a minor annoyance that are obvious and can be quickly deleted or ignored. There are other scams, though, related specifically to your business that you need to be on the lookout for.
April 15, 2017
The Brand of the Used Equipment You Buy Matters
There are plenty of brands in the construction industry all vying for your business. From the top-tier brands that you’ll pay a premium for to the low-priced, value driven brands, you have a lot of options to choose from. So, which way should you go? Do you purchase a model from brands like Caterpillar, Deere, Komatsu or Bobcat that retain their value? Or, do you look at brands that you’re less familiar with and try to save a few dollars? After all, every similarly sized and powered machine in a category should have comparable performance — right?
While it would seem like the answer to the questions above should be easy, there are several factors you need to consider while answering the question about which brands of used equipment to buy and which brands you should avoid.
April 1, 2017
What You Need to Know About Refurbished Construction Machinery
There is a new category of used construction equipment that has been growing since the recent recession — refurbished, or re-manufactured equipment. If you’ve run across refurbished machinery during your search for used equipment, you likely have some questions. What is it, who performed the work and is it worth the extra expense?
MARCH 15, 2017
New IEDAUsed.com Connects Equipment Buyers with Reputable Used Equipment Dealers
The Independent Equipment Dealers Association (IEDA) announced the complete redesign of its IEDAUsed.com site at ConExpo 2017, making it even easier and safer to shop for quality used equipment from the most respected and trust-worthy sources. IEDAUsed.com houses the current used equipment inventory of more than 130 IEDA members worldwide. Buyers can search for equipment by category, manufacturer or location. Visitors can also put IEDA members to work for them with the sites’ “Want to Buy” feature. This allows buyers to specify exactly what they are searching for and have IEDA members help them track that machine down.
MARCH 1, 2017
When should you replace instead of repair your construction equipment?
Knowing when is the right time to replace instead of repairing equipment is a balancing act that every contractor faces. At some point in the life of machinery, there comes a time where you need to retire a machine and invest in a late model machine. After all, you don’t need to buy new to get something more reliable. Quality used equipment can save you thousands of dollars while still delivering the dependability you need every day.
To determine when it’s time to replace or repair a machine, you need to look at the cost of downtime, maintenance expenses, utilization, company needs and resale value.
JANUARY 15, 2017
What You Need To Know About Refurbished Construction Machinery
There is a new category of used construction equipment that has been growing since the recent recession — refurbished, or remanufactured equipment. If you’ve run across refurbished machinery during your search for used equipment, you likely have some questions. What is it, who performed the work and is it worth the extra expense?
JANUARY 1, 2017
How Does the IEDA Help Construction Equipment Buyers and Sellers?
The construction industry is comprised of several different associations, including the Association of Equipment Manufacturers (AEM), the Association of Equipment Dealers (AED) and the Associated General Contractors of America (AGC). Most of these you are probably familiar with, but one that might not be on your radar but should be is the Independent Equipment Dealers Association (IEDA).
So, what is the IEDA, and why should they be on your radar?
DECEMBER 15, 2016
Forecasting the Impact of Tier 4 on the Used Construction Equipment Market
According to a recent survey of Independent Dealers Association (IEDA) members, the EPA’s Tier 4 mandates are driving up the demand of non-Tier 4, used construction equipment and predicts this trend will continue for the next several years. For many equipment categories, used equipment availability is outpacing demand, but for other categories, including excavators, backhoe loaders, wheel loaders, dump trucks dozers and compact equipment, IEDA members are seeing resale pricing increase by as much as 20 percent. Also, more than 50 percent of survey respondents noted that quality used equipment is getting harder to find.
DECEMBER 1, 2016
Making Sense of Used Construction Machinery Pricing
When you’re in the market to buy a piece of used construction equipment, chances are you have a question or two about the costs and/or fees associated with the process. You don’t want any surprises. Here are a few considerations that will help as you make sense of the pricing model for used equipment.
NOVEMBER 15, 2016
Not Ready for EPA Tier 4? Then Consider Buying Used Construction Equipment
Whether you’re the type of contractors who always buys new construction equipment or someone who prefers to run well-cared for used machinery, eventually your business is going to feel the impacts of the newest Environmental Protection Agency’s (EPA) Tier 4 mandate. However, it’s up to you to decide when.
NOVEMBER 1, 2016
Reason to Buy Heavy Equipment from Used Equipment Dealers instead of at Auction
Millions of people attend used equipment auctions every year. It’s a great place to see your friends, catch up on what’s happening in the industry and see the hundreds of machines on display. These 1-2 day events have become a popular form of entertainment, and for many a chance to add equipment to their fleet.
While bidding on your chance to “win” a piece of equipment is an adrenaline rush, buying at auction does have its drawbacks. In fact, more often than not, you can find the best quality piece of used equipment available on the market, at the best price, from a used equipment dealership.
OCTOBER 15, 2016
How Tier 4 Impacts Used Construction and Mining Equipment
Emission mandates from the Environmental Protection Agency (EPA) have been a major driver for construction and mining equipment manufacturers over the last 2-1/2 decades. And, while the progression from EPA Tier 1 to 4 is helping to reduce pollution, it has also created a lot of concerns for buyers and sellers of used equipment.
We wanted to take a minute to answer some of your buying and selling questions.
OCTOBER 1, 2016
Buying & Selling Equipment Overseas
Whether you’re a contractor or equipment dealer, profits are made—or lost—during the sale or purchase process of heavy equipment. When buying equipment, the goal is to get the best quality piece of equipment for your needs at the best price. When selling equipment, you want to get the best price possible.
If you are focused on buying or selling locally, you may be leaving money on the table. In today’s global economy, sometimes the best deals, whether you are buying or selling, might be waiting for you outside of your country’s borders.
SEPTEMBER 15, 2016
Financing used construction equipment: How to find the right fit for you
After you’ve found the perfect piece of machinery to add to your fleet, you still need to decide how you want to pay for it. Do you want to finance the purchase, sign a lease agreement or pay cash?
And, if you plan to work with a financial institution, who’s going to give you the best terms and respond quickly so that perfect machine can get to work making money for you?
There are a lot of questions to think through when it comes to choosing the right financial options. Luckily, if you’re working with a member of the Independent Equipment Dealers Association (IEDA), the process doesn’t have to be so complicated.
SEPTEMBER 01, 2016
8 Questions to Ask Sellers When Shopping for Used Heavy Machinery
In today’s technology-driven world, contractors can search for used construction equipment with a few clicks. And while locating the exact machine you want may not be a time-consuming process anymore, you still need to spend some time vetting the company you’re buying from. Asking the right questions will make sure you’re doing business with a used equipment dealer that you can trust.
Here’s a list of the questions you should be asking when you’re shopping for used construction equipment
AUGUST 15, 2016
Inspection Tips to Follow When Buying Used Heavy Equipment
Shopping for quality used heavy construction equipment can be a time-consuming process, but it is also an activity that it well worth the time spent, netting you thousands of dollars in savings verse the price of new equipment. To get the best quality, price and buying experience, inspections should be an important part of that plan: Inspect the seller, inspect the machine’s history and finally inspect the machine.
AUGUST 1, 2016
Reduce the risk when buying used construction and mining equipment
Shopping for used construction and mining equipment can be a real challenge. Whether you’re spending your time flipping through used equipment trader magazines or searching online, buyers have many of the same concerns before making a purchase.
- How do I know if the piece equipment I am looking at has been properly represented?
- Has the equipment been inspected properly
- Has it been properly maintained?
- Is the price fair based on the machine’s make, hours and condition?
- How much time am I willing to spend searching for the right machine for my needs?
- If I can’t find exactly what I’m looking for, is there a comparable model that will meet my needs?
- Am I willing to dedicate the time and money traveling to inspect a machine for myself?
- How much will I have to invest in transportation costs to get the machine to my yard?
And, the most important question of all: Can I trust the dealer/individual I’m buying this machine from?
JULY 15, 2016
Advantages of buying used construction equipment
Is your construction equipment making money, or are you spending the majority of your profits on the paying for your equipment? Construction equipment ownership, whether new or used, requires a company to work toward paying for it. However, there is a much more inflated cost associated with buying new, which is why you have to ask yourself, “Is owning new worth it?”