Purchasing a used excavator can be a savvy investment for your business, but it requires careful consideration. Evaluating several key factors can help ensure you make an informed decision that meets your operational needs and budget constraints.
Budget and Financing Options
Initial Cost:
Understand the total cost of owning the machine. This includes what you pay for it, but also what it’s going to cost you to maintain, repair, and run over its lifetime.
You need to think about how much it is going to cost you to buy it, how much it is going to cost you to keep it running, and how you’re going to finance it to make sure you can afford it over the life of the machine.
Understand that owning a machine means you’re going to have other costs associated with it like insurance, fuel, and the training of the people who are going to operate it. All these need to be considered when determining if you can actually afford to own this machine.
Financing Opportunities:
Explore different financing options available to you. Different lenders may have different programs that make more sense for your situation.
Think about financing your used excavator with a loan or a lease. Often these are good ways to get the equipment you need and spread out the cost as you’re making money with the machine.
A lot of dealers even have their own financing departments, so ask about it. They often have programs available to help you get the equipment you need and get it quickly.
Condition of the Excavator
Visual Inspection:
Do a thorough physical inspection. Look for signs of wear and tear, rust, damage, and the condition of the tracks and the attachments. A good visual inspection can tell you a lot.
Look for leaks, dents, or wear that shows hard use or lack of maintenance. Spending time doing this now can save you money in the long run.
Operational Test:
Testing the excavator in real working conditions is really important. You need to make sure that the machine works the way it’s supposed to.
By putting it to work, you can tell a lot about how it sounds and feels which can give you great insight into how it is running. Weird noises, strange vibrations, or hesitation could mean trouble.
Hours of Operation
Impact on Longevity:
Pay attention to how many hours are on the machine. The number of hours on the machine can tell you a lot about its life expectancy. The more hours, the shorter the life expectancy of the machine.
Knowing how many hours are on the machine can also help you make a decision about what the machine is worth. Be aware that most excavator owners think they will get between 10-15,000 hours before needing to do a major overhaul on the engine.
Knowing the average life expectancy for the make and model you’re looking at will help you make a better buying decision.
Average Hours for Used Equipment:
Research the number of hours you can expect out of the specific model of excavator you’re looking at. Knowing how many hours you can expect will help you know if the hours on this machine are in line with what you would expect.
Maintenance History
Documentation Review:
Check for maintenance records. A well taken care of machine will have records of regular maintenance. A good maintenance history makes a machine more desirable because you know it’s been taken care of.
A good maintenance history can also be an indicator of future reliability. If you see records of regular service, chances are that the machine is going to be reliable for you in the future.
Look for any major repairs and component replacements in the machine’s history. These can have a big impact on the longevity and performance of the machine.
Past Repairs and Upgrades:
Evaluate any major repairs or changes that have been done. These things can affect both what the machine is worth today and what you’ll need to do to it in the future.
Brand and Model Reputation
Reliability of Brands:
Research the reputation of the different brands. Understand that some brands are known for building better equipment than others.
Understanding the reliability of the brand can be an indicator of how well the machine is going to perform for you over time.
Look for reviews and information from people who work in the industry and talk to people who use the brand you are considering to see how happy they are with it.
Market Demand:
Understanding the resale value and market trends for specific models
play a role in helping you make the decision whether or not to buy the
machine.
Warranty and Support
Available Warranties:
Check and see if there are any warranties available on the machine.
Sometimes dealers will offer limited warranties on the used equipment
they sell. Having a warranty on the machine can save you from a big
problem down the road.
Look into extended warranties. These warranties can cover big ticket
items on the machine and provide you with extra peace of mind.
Dealer Support:
Make sure that the seller can provide you with the parts and service support that you’re going to need. This can be critical to keeping the machine up and running.
Attachments and Accessories
Included Attachments:
Evaluate what attachments come with the excavator. These can add to the functionality and the value of the machine.
Additional attachments can make the machine more versatile and therefore worth more to you because you can use it on more projects.
You want to also make sure that the attachments the machine comes with are the ones you want, whether it be for digging, lifting, or grading.
Compatibility with Future Needs:
Determine if the machine and the attachments that come with it will meet the needs you have for it over the long term.
Environmental Considerations
Compliance with Regulations:
Make sure that the machine and the attachments that come with it are going to meet the needs you have for it over the long term.
Compliance with regulations can ensure you don’t get in trouble and
potentially have to pay a fine. Those sorts of things can derail your
project and give you a real headache.
Newer machines often have better
emissions ratings, and in many places, that can be a big deal.
Reputation of the Seller
Researching the Seller:
Buy from a dealer or a private seller you can trust.
A quality seller should be able to give you a better feel for the condition of the equipment and help you understand its history.
Look for reviews and ratings online and ask the dealer or private seller for references from other people they have sold to.
Conclusion
Evaluate all your options, and do your due diligence when you’re buying a used excavator. By looking at your budget, the condition of the machine, its maintenance history, and the kind of people who are selling it to you, you can make an informed decision that’s going to help your business. Taking the time up front to research and evaluate is going to save you headaches and money down the road.
