Great news! After putting your nose to the grindstone your business is taking off – you’re in a position to expand your operation. Expansion is great, but with growth comes additional expense. So, before you place that order for brand new machinery, vehicles and equipment, be sure to explore the used machinery market. Not only does pre-owned machinery come at a reduced cost, it’s often in very good working order that allows you to continue your expansion without breaking the bank.
As with any large business purchase, there are certain items you should watch out for when perusing the used machinery market.
Do Your Homework
Do a little background checking on the company or individual selling the machinery you’re looking to buy. If you have colleagues in the same industry it never hurts to ask for referrals. It’s also smart to ask for any references the seller might be able to provide.
Kick the Tires
If you’ve found the machinery you’re looking for locally, go and check it out in person. If you’re not able to inspect the equipment in person, ask that the seller provide video or other proof of the item you want being put through its paces.
Does the machinery for sale come with any guarantees or warranties? If buying from a dealer, did they they perform any type of inspection to verify condition? Never feel bad about asking for additional documentation if the seller makes claims regarding warranties or guarantees of any type.
Are Batteries Included?
Used machinery can sometimes be used as an in-house salvage yard for other machinery, so be sure to verify that all components and pieces are present. If you’re buying direct from the previous owner, ask about how the equipment was used and how long it’s been idle. These can be good clues as to how the item was used once it was replaced.
Regardless of your final decision when it comes to purchasing used machinery, it’s always smart to protect yourself as much as possible from misrepresentation. The easiest way to do so is through the use of an online escrow company that will hold your funds safely until you’ve had a chance to verify the machinery is as advertised. Short of that, be sure to ask the seller about any return or money-back policies they may have in place. And, as always, if something seems to good to be true it probably is.