Used equipment purchases can save a substantial amount of capital while simultaneously protecting available working funds. To get the best value out of any used purchase, however, you will need to inspect machinery carefully for signs of damage and excessive wear and tear.
Based on your circumstances, purchasing equipment on consignment could be the right solution. By working with dealers who have excellent connections and knowledge about marketing equipment and creating a diverse customer pool for sale.
Dealers
There are many equipment dealers who sell used industrial machinery. They may provide various selling options including consignment, online auctions and direct purchase. Furthermore, many offer financing solutions.
Used equipment provides access to equipment that might otherwise be out of your price range and lets you avoid initial depreciation that occurs with new purchases. However, it should be remembered that used machines do not typically come with any type of warranty coverage.
Jim Weber, a 40-year veteran consultant in the equipment industry who presented at the 2017 Dealership Minds Summit, noted that large volume dealerships are seeing their used turn rate decrease from an ideal 40% of total goods sold down to 31%.
Online Marketplaces
There are various online marketplaces where you can sell your used sports equipment. One such marketplace is Facebook Marketplace, which enables you to list items publicly so potential buyers can easily locate them. In addition, private groups that specialize in selling sports gear also allow sellers to post equipment they are offering for sale.
IronPlanet and similar online marketplaces like it provide similar offerings, yet have an even larger customer base than eBay. Their equipment listings include photos videos ratings specifications warranties pricing information as well as inspection services and instant financing from Cat Financial for qualified buyers.
MarkITx, a Chicago startup, provides enterprises with another option for extracting maximum value from their IT equipment resale: MarkITx provides enterprises with an attractive alternative to dealing with buyers who make low offers or negotiate contracts directly themselves.
Private Parties
Some businesses sell equipment directly to private parties for various reasons, including upgrading their fleet, downsizing or getting rid of items they no longer require. While this sale method can provide great value, there are risks involved and it’s essential that an inspection be conducted thoroughly to verify free and clear title as well as transfer warranties available from previous owners to new ones.
Word travels fast in the used equipment market, so it is vitally important that departments know exactly who they’re purchasing from. While reputable dealers with warranties would be ideal, departments can still review potential buyers to detect and avoid any suspicious activity or activity during a pandemic when demand increases and additional fraud risks arise.
Auctions
Contractors can benefit greatly from taking advantage of auctions offering used equipment at greatly reduced rates compared to purchasing it new from an equipment dealer, saving valuable funds that they can put toward other areas of their business or put away as savings for later.
Before selling used equipment at auction, it’s crucial to conduct extensive market research in order to properly price it and determine its market value. Furthermore, it would be useful to investigate what similar machines have sold for at previous auctions.
Plotting the value of an object can be accomplished using various techniques, such as searching auction marketplaces, manufacturer websites, rental house websites and contractor websites, speaking with dealers and contractors or conducting virtual walkarounds – with most auction companies requiring payment in full on sale day either through cash, certified funds with letter of credit or virtual walkarounds to expedite registration, purchase and transportation processes.
