10 Tips for Buying Used Construction Equipment

For small construction companies, buying used equipment is often an attractive way to expand their machine fleet. However, buying the wrong machine; either because its too big, too small, too little or too much power, or constantly broken down, can have a huge, negative impact on the financial health of the company.

Buying the right equipment and maximizing the return on investment (ROI) for used equipment requires careful consideration, a focus on relationships, and a strategic approach. Here are ten tips to ensure that small construction businesses get the most value from their used equipment purchases.

10. Stay Ahead of the Rush: Avoid quick decisions when it comes to buying equipment. It's tough - but stay ahead of projects and equipment needs to make sure that you only own utilized and productive machines.

9. Rent (RPO) First: If you need a machine quickly, consider renting a used machine before you buy. And, did you know that equipment dealers will often apply some, or all of the rental payments, to the purchase price of the machine. It's called an RPO, "Rental Purchase Option." And, it can be a great way for you to try a machine, even a used machine, before you buy while actually gaining equity in the machine.

8. Relationships are Worth a Lot: Looking at used equipment on Facebook Marketplace is fun but be careful – individual sellers don't often have a reputation to maintain. If you are going to invest in a large amount of capital, then you'll want to buy from a company that cares about their long-term reputation.

7. Do a Thorough Inspection: Before finalizing any purchase, conduct a comprehensive inspection of the equipment. Scrutinize every system, including engine performance, hydraulic systems, controls, tires, and structural integrity. If possible, involve a service technician or equipment expert in the evaluation of the machine. Their insights can provide a professional assessment of the equipment's condition and its suitability for your projects.

6. Invest in Maintenance: Maintenance is the most important thing you can do to keep your machines up and running. If your machines are running – you are making money. If they are down – well, you know how bad that situation is.

5. History and Documentation: Request the equipment's history and maintenance records from the seller. This information provides insights into how well the equipment was maintained. A well-documented maintenance history suggests better overall condition.

4. Research Comps and Resale Value: While considering a purchase, research comparable machines and the potential resale value of the equipment. RTL Equipment has experience, data, and tools (from thousands of retail and auction transactions) to help you value both your fleet and machines you are considering. Take advantage of this service to make sure you get a good buy.

3. Certified Used: Consider buying Certified Used equipment that has undergone extensive maintenance and inspections. These machines include warranties as well as subsidized financing offers. Be sure to ask RTL Equipment about Certified Used DEVELON equipment.

2. Calculate Total Costs: Consider not just the purchase price but also associated costs such as transportation, maintenance, insurance, and any required attachments or modifications. An accurate understanding of total costs helps in budgeting and ROI estimation. Also, some used equipment may come with warranties or guarantees. Explore such options as they provide an added layer of protection against unexpected issues.

1. Negotiate: Don't be shy and don't hesitate to negotiate the price with the seller. Empowered by sufficient information about market values of similar used equipment, you can ask for price adjustments that can make a significant difference in the overall investment, improving the potential ROI.

To sum it all up, buying used construction equipment is an opportunity for small companies to expand their capabilities without breaking the bank. But it can also be perilous and can really cost you if you make a mistake. By following these tips, small construction businesses can make better decisions that maximize the ROI on their used equipment investments.

RTL Equipment has been in the heavy construction equipment business for over 35 years. We've built our business and reputation by selling, renting, and servicing new and used equipment and helping customers own and maintain the most profitable machines possible. Lean on RTL Equipment for support and solutions for all your equipment needs.