Capital Equipment News April 2017

USED EQUIPMENT

With a little extra effort on a buyer’s part, the most common used-equipment buying pitfalls can be avoided.

of equipment take the risk out of buying used? If you are buying used equipment, what should you be looking for before purchasing a used machine? Do you know what signs may indicate you proceed with caution or what might be a red flag for the purchase? Williamson says for the heavy used equipment market to truly flourish in emerging African countries, the buyer and seller relationship must be fine-tuned, which can be offered via global online auction platforms. “Each machine that is listed on IronPlanet is registered alongside a bank of images and videos, as well as detailed inspection reports which provide exact descriptions of the machine,” says Williamson. “This way, both buyers and sellers have complete transparency of the transaction, increasing trust in their purchase. This is incredibly important for African countries where the level of trust is low and corruption is rife.” According to McOwen, the most important thing is securing the much needed backup from the supplier of used equipment, and also the fact that the history of the machine is securely backed up. In terms of what signs may indicate you proceed with the purchase or what might be a red flag for the purchase, McOwen says the unavailability of service history for the machine could indicate that the machine has been abused before. “Test and inspect the piece of equipment before you make up your mind to buy. You can employ the services of a qualified mechanic or experienced operator to conduct both physical and functional inspection on your behalf,” says McOwen, who also advises buyers to be very wary of buying equipment online and argues that risks far outweigh upfront capital savings. Suppliers of used gear also caution that the hours logged on a piece of machinery are not always a reliable indicator of the health

CTC Plant Company is one of the biggest reputable local used equipment suppliers in South Africa.

It is often the norm that when times are this tough, price is the prime determinant of what we buy, but when the equipment you are buying is business-critical, quality and authenticity should be your most important considerations. When buying refurbished equipment, it is of utmost significance to ascertain that the refurbished piece of equipment has a warranty and maintenance programme. This way, should it fail, it will be under the same level of protection as new equipment, says Lupton. The growing preference of purely used equipment with no form of refurbishment is also notable, and it is the African fleet operators particularly notorious of preferring this gear. Often used equipment is just bought with no available previous maintenance records or knowledge of previous concerns. “I believe when buying used equipment, it is noteworthy to look beyond the price tag. Nothing can be worse than buying a piece of equipment at a ‘bargain’ price only to have it fail shortly after it is deployed at a crucial jobsite where any form of downtime is out of question, especially considering that project timelines of today are unforgiving,” says McOwen. “If you make a mistake on a small appliance, you will have a few regrets and move on. That same mistake on a big piece of construction equipment has far reaching implications that will cost you for the long haul.” b

of the engine. Be sure to pay extra attention to several other details to help make a final decision and protect your equipment investment. For example, according to IronPlanet, potential buyers can look for leaks and damage when inspecting used machinery, but even if a piece of equipment looks good on the outside, it’s harder to tell the condition under the hood. That’s where an oil analysis can be a valuable tool for the buyer. It is like a blood test for a machine’s engine, transmission and hydraulic systems. The cost of an oil analysis kit is very minimal considering the valuable insights it can provide on a machine that likely costs millions of Rands. Used vs refurbished There is also a choice of either used or refurbished equipment. There is a very thin, but clear divide between refurbished and used equipment, meaning that they are not one and the same thing. Though both terms insinuate previous ownership, refurbished equipment, when done under OEM standards, complies with quality standards, often with the same warranty options as new gear. Though refurbished equipment is often backed by standards, different vendors use different processes, parts, levels of exactitude and quality- acceptance levels to refurbish the equipment they sell.

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