How to Determine a Fair Value for Used Equipment

No matter what industry you are using heavy equipment for, you need to be able to rely on your equipment. Your machinery needs to be productive whether you are using it for construction, landscaping, or agriculture work. Although it may seem as though buying new equipment is the best choice, in a lot of situations, it is better to opt for used machinery. 

The pre-owned market is the better option for your business if you want to avoid paying a huge amount upfront. If the jobs you are taking on do not require newer models, it is better to find used equipment that will do the job and will not cost as much, but you still need to find quality equipment at a fair price. Before you buy a piece of used equipment, you need to determine its real value. To accomplish that, there are few things that you can do.

Market Comparison

A market comparison is a great way of determining the real value of a piece of equipment. It does not just work for cars and trucks. There are a lot of reputable sources, such as Equipment Anywhere, where you can go to compare prices of compact or heavy equipment. 

First, you need to get a general estimate of the equipment that you require. Once you have that, you can cross reference the price of that equipment with others listed on different websites. You can narrow down your search by including factors like model, year, hours, price, and availability. The more you can narrow down your search, the easier it will be for you to gauge what price you should be paying for the equipment. 

Choose a Renowned Brand

Looking for equipment in the pre-owned market is going to be challenging enough without adding lesser quality machinery into the mix. You can eliminate a lot of doubt from the purchase simply by opting for a trustworthy and renowned brand like Caterpillar. Make sure that the equipment you choose is from a reliable brand that you can trust to complete the job at hand. Choose a brand that has a reputation of producing equipment that can retain its value.

Get the Complete History

When you are looking to land a great deal on a wheel loader or any other machine, it is best to find out everything that you can about the machine before you make the purchase. If the listing for a piece of equipment does not include important details like its operating hours or its service history records, it may be an indication of poor maintenance and service issues. Make sure that you can get a detailed report from your dealer before you make a decision. 

Test It Out

If you want to accurately determine the value of a machine, there is no better way than testing it out yourself. If the dealer refuses to start it up and show you how the equipment performs, you really have to wonder if they are hiding something. Actually seeing a machine in operation is vital.