The market for used industrial equipment is a big one with many sellers out there since is it highly fragmented. Over the last two decades companies have been using internet technology aiming to concentrate the used equipment supply and demand. However, the market is still very much segmented, a lot of business is done off line and a local presence in the markets with off line support is key to reaching the best machines and safe transactions.
Even when talking about used machinery the costs are high and there is a significant investment. Any purchase decision has to be made carefully. Used machinery buyers have various profiles, from companies limited by budget to companies limited by time. Used machinery is a way to buy good brands at accessible prices, and also allows companies to access machinery without waiting times.
Here are the factors that you should consider when purchasing used machinery.
1. Define well your requirements – You need to have a clear idea of what you wish to buy. A previous knowledge of the brand you are purchasing is an advantage, especially if you have an in house team specialized in that brand. If you are not sure of the best machine that suits your needs, you are a new comer to the industry or you want to change brands, seek the right professional advice. Used machinery dealers usually have a good knowledge of different brands and models, as they deal not only with the latest developments but know the performance of old models, the availability of spare parts in the market and what could be considered a good investment.
2. Your budget – Your budget will dictate many things including the brand and exact model type that you can purchase, as well as the machinery age and condition. You need to have a clear breakup of costs associated with your purchase decision. These include cost of additional space required, if necessary; cost of transporting the machines to your factory; dissembling and reassembling the machines; any upgrades you might want on the machine. Most times there is a clear correlation between price, machinery condition and brand. If you are planning on getting a bargain you have to be flexible with your time, and move quickly if one appears. However, most machinery sales have a market price determined by supply and demand, as well as the price set by the seller that could also be determined through depreciation.
3. Your timing – Timing is key in the used machinery market. When you find what you are looking for, move quick, as machines are unique, and in certain brands and models opportunities are scarce. Also the less pressured you are for time the more chances you have to find a bargain. Nonetheless, be aware that for certain machine types bargains are difficult to come by as demand often exceeds the supply and can slip by quickly.
4. Accessing better machines and more machines through a used machinery trader – Given the global nature of this business, it is not possible for a buyer to know about the best deals out there in terms of cost and quality. This is where brokers come in. A good brokering firm will be able to present you with multiple options and help you select the best used machinery for your needs. Through a professional used machinery company you will have access to machines that you could not find on your own.
5. Visual inspection – The importance of this aspect cannot be overstated. The internet has made communication easy and online business has become the norm but physically inspecting the machines is highly recommended. Used machinery is usually not under guarantee. You need to know the extent of refurbishment and get an idea of the actual state of the machine. You should insist on a test run and keep your eyes and ears open for tell-tale signs of machine ill-health such as unusual vibrations or noises. Find out about maintenance records and watch out for deterioration. Visiting the machine at is original factory gives you access to key information, like seeing the type of factory it has been working in, meeting the team that ran it and learning better how it functions. Alternatively, you can ask for a professional evaluation done by the brands’ technicians. MachinePoint personally accompanies its buyers to inspect the machines and help them run through a check list of points as needed.
6. Calculate all final costs – Bear in mind dismantling, moving and installation costs, as well as any upgrades you might want to do to the machinery. Sometimes these expenses can greatly affect the final price of the transaction.
7. Work with a company that can provide you with all the necessary services – Working with a used machinery trader that provides these services will save you a lot of time and unnecessary risk. Do not underestimate the importance of dismantling, packing and loading the machinery correctly. The correct functioning of your machinery will depend that each of these phases is done correctly. You need a company to help you with this, as most likely you won’t have these types of contacts in the country where the machine is located. Furthermore, choose a used machinery provider with experience doing international machinery transportation. For example, MachinePoint has specific used machinery insurance that you wouldn’t be able to get by yourself and that transport companies do not usually provide.
8. Get everything on paper – This is a very important step in buying used machinery. Get everything written including the first formal quotation, the details of the machines, the accompanying accessories, delivery terms, mode of payment, extent of buyer liability, seller liability, etc. This can help you avoid any unnecessary confusion in the future.
In conclusion, it can be said that a successful purchase of used machinery requires due diligence from the buyer. Partnering with a good broker that knows the inside working of the business can be of incalculable added value to you.