Capital Equipment News April-May 2020

USED EQUIPMENT

Buyers have been looking to the pre-owned market when replenishing heavy plant and construction machinery ever since the global economic downturn of 2008.

It is paramount to buy from a reputable dealer where you can verify machine details

Tips for buying second- hand equipment

The current economic downturn is affecting crucial growth and the capital equipment market is feeling the pinch. We turned to two players in the used yellow metal equipment space for their views on this and other factors, including practical tips for when buying used equipment and potential deal killers to look out for. By Mark Botha.

B en Buys, Babcock operations director – equipment, says that, although the down- turn in the local construction industry is affecting the used plant market negatively, certain sections within it are affected worse than others. “Activity in the used equipment market in general remains subdued,” he says. “Civils projects are becoming scarce now and that impacts the smaller used machine sector in particular.” By contrast, the international used plant market is growing, says Jonnie Keys, global operations manager of UK-based online plant auctioneer Euro Auctions. He says capital equipment is seen as a commodity and

that the “global stock” of these machines is traded around the world. However, these times of plunging oil prices and global health threats are an ill omen to mining, construction and industry everywhere yet, to Keys, there is a silver lining: “Buyers have been looking to the pre-owned market when replenishing stock of heavy plant and construction machinery ever since the global economic downturn of 2008, when many OEMs stopped manufacturing new machines.” He says when times improved, OEMs were unable to meet demand, prompting contactors, civils companies and hire specialists to turn to the used equipment market. “The same holds true today. With Covid-19 affecting

CAPITAL EQUIPMENT NEWS APRIL-MAY 2020 20