There is a reason heavy equipment is so expensive. Whether it’s an excavator or a bulldozer, the machinery itself is complex due to hydraulics, GPS systems, and the raw material needed during the production process – after all, these machines are huge.
As expensive as these items are to purchase or maintain, they can also fetch quite a bit of money when it comes time to sell them. Not all equipment is the same, and various factors play a role in how much it’s worth. Consider these tips when selling heavy equipment so you can get the most value for your items.
Most of the time, people sell used equipment because it needs replacing. Although heavy equipment is made to last – some machinery can last decades if maintained properly – it may need to be upgraded eventually. Equipment, especially older equipment, reaches a point where it no longer makes financial sense to make repairs.
In other cases, individuals or business owners may no longer need the equipment. This may be because of a surplus or certain equipment used for a specific job that is now obsolete. Instead of letting it sit and collect dust, the more financially responsible decision is to sell your items for maximum value.
Depending on the market, some heavy equipment is offloaded even if it’s in good condition and used regularly. For example, if supply is down but demand is high for a specific tractor, you may consider selling your tractor to cash in on market fluctuations. If your equipment typically fetches $20,000 on the open market but can sell for $30,000 due to increased demand, it makes financial sense to sell.
Finally, the natural evolutionary process of machinery is to make upgrades when it becomes outdated. As time passes, new machinery will have upgraded features, longer-lasting materials, or better fuel economy. In the long run, a newer item can save you operating expenses.
Here are some tips to consider when it comes time to sell your used heavy equipment.
Do your homework: Research the equipment you plan to sell, including the pricing and inventory in your area. This can offer you a baseline of whether it’s worth it to even sell. Nowadays, most of this information can be found online.
Ask an appraiser: If you are undecided on whether you should even sell your equipment, consider asking an appraiser for their opinion. The appraised value isn’t necessarily what your equipment will sell for on the open market, but it gives you an idea of what it’s worth.
Find an experienced seller: This goes without saying, but you want a dealer who has experience selling your particular equipment. You wouldn’t have a plumber fix an electrical issue, right? The same goes for an auction company. Make sure you use an auction house that deals with heavy machinery on a regular basis.
Be up front: Auction items are sold as-is, so more is better when it comes to details. Buyers don’t like surprises, so your items are more likely to sell – and sell for a higher value – if you provide photos and explain the condition of parts, the interior, and how long the equipment has been used.
Appearance is key: There is a reason curb appeal is key when selling a house. The same goes for equipment. A 20-year-old crane full of dirt and grease won’t look the same as a 20-year-old crane that has been power washed or painted prior to your sale. Consider being proactive and clean your equipment on a regular basis to prevent a buildup of dirt. Not only will this make it easier to clean before selling, but it can also help metals from rusting.
Replace worn parts: Instead of making expensive repairs, spruce up your old equipment by making smaller repairs. This includes new tires, a new seat, or new controls that may be worn out.
Maintain your equipment: Take care of your equipment by performing regular maintenance such as oil changes.
Make it attractive: Many machines sales are conducted online, which means the equipment is typically viewed online as well – instead of in person. Photographs of your machinery can leave either a positive or negative first impression. If possible, take a photo in a well-lit area free of debris.
Part of the equation of selling used equipment is knowing when it’s time to pull the trigger. In many cases, a piece of heavy equipment is only as valuable as its lifespan. In other words, an engine with thousands of hours of wear and tear and is near the end of its lifespan will be less valuable even if it still runs.
Here are some examples of the lifespans for various heavy machinery.
Every three months, Dakil Auctioneers, Inc., holds heavy equipment auctions that feature hundreds of items to bid on.
Our auctions include the following items:
Stay up to date with our upcoming auction schedule to buy or sell used heavy equipment. Our office takes consignments in the days and weeks leading up to these auctions, so contact us at (405) 266-2709 if you’re interested to offload old or unused equipment.
