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CAPITAL EQUIPMENT NEWS
APRIL 2017
22
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
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.
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
With a little extra effort on a buyer’s part, the most
common used-equipment buying pitfalls can be avoided.
CTC Plant Company is one of the biggest reputable local used equipment
suppliers in South Africa.
USED EQUIPMENT