Construction equipment, such as forklifts, compact wheel loaders, excavators, telehandlers, and rough-terrain equipment, can be expensive. If you own a new business or a business that is tight on money, you may be in need of this equipment, but may not have the budget to buy them new. Buying used equipment is a great way to get the construction equipment you need at a reduced price. There are many ways you can buy used equipment. One way is through an auction house. Auction houses may auction off equipment that has been repossessed, that has been liquidated because another business filed for bankruptcy, or that is just being sold because the owner no longer needs it. While there are advantages to buying through an auction, there are disadvantages as well. Here are a couple of those advantages and disadvantages.
The Disadvantages of Buying Used Construction Equipment Through an Auction
One of the biggest disadvantages to buying a piece of construction equipment through an auction is that it is an as-is sale. This means that no warranty is offered. And, unfortunately, you may not even have the ability to inspect or test out the equipment before you buy it. You will be taking a gamble on whether the equipment works when you buy through an auction.
The other downside to buying through an auction is that you don't know the equipment's history. You don't know what parts have been repaired or replaced, and you don't know if the machinery has been maintained. When you buy a used piece of equipment from a manufacturer, they often have maintenance records or have refurbished it, so you know the general history of the machine.
The Advantages of Buying Used Construction Equipment Through an Auction
As mentioned before, the biggest upside to buying construction equipment through an auction is that you can typically get pieces at low prices. Because the equipment does not have a warranty, people will pay less for the machinery, with the chance it needs repairs. As such, if you need equipment at a rock-bottom price, an auction may be the way to go.
The other advantage to buying through an auction is that the auction company has taken the time to ensure the title for the construction equipment is free and clear of liens. If you buy used equipment directly from someone else, you have to do this yourself to ensure there aren't any liens on the equipment. If there are, you may have to pay them back, or you may be unable to transfer the equipment title into your name.
If you need used construction equipment, you may be considering buying the equipment you need through an auction. Learning the advantages and disadvantages will help you decide if this move is right for you. To learn more, talk to companies like Independent Lift Truck of Alaska.
Share1 September 2017
My family owns a thriving timber business. For over thirty years, they have been meeting their customers’ needs in my home state. One of the reasons for their success is their commitment to purchasing state-of-the-art heavy construction equipment to use in their business. After buying the most technologically advanced machinery available on the market, they also strive to maintain it for the safety of their employees. If you own a business, you need to regularly schedule a professional to check the safety of your heavy construction equipment. On this blog, you will discover how to protect your employees by hiring someone to regularly check the safety of your machinery.
