Buying construction equipment at auction can be a savvy way to save money and find the perfect machine for your needs. However, while the allure of scoring a good deal is strong, the risks are just as real. Whether you’re looking for excavators, loaders, or bulldozers, it’s essential to understand what to look for and how to assess the condition of the construction equipment. Let’s learn how to cover key areas you need to consider to ensure you’re making a smart purchase when buying heavy machinery at auction.
Inspecting the Condition of Construction Equipment
When buying construction equipment at auction, thorough inspection is key. Attending the auction’s inspection day is a critical first step. This is the only opportunity you will have to physically evaluate the machinery.
Here are some areas you need to check:
Signs of Wear and Tear: Every piece of construction equipment undergoes wear, but some parts wear down faster than others. Inspect the tyres, tracks, and undercarriage for excessive damage. Look for cracks, rust, or leaks in the hydraulic system, which may indicate costly repairs down the line.
Engine Performance: A well-functioning engine is the heart of any heavy machinery. During your inspection, start the engine and listen for any strange noises like knocking or rattling. Look out for excessive smoke, which could indicate engine issues that require expensive repairs.
Hydraulic Systems and Boom: For machines like excavators and loaders, check the boom and hydraulic cylinders. Make sure there are no leaks, and test the functionality of all hydraulic movements. Poor hydraulics can severely impact the performance of the equipment.
Overall Functionality: Test all the controls and systems if you can. Ensure everything is operating smoothly, from the gears to the braking systems, which are vital in maintaining safety on-site.
Evaluating the Service and Maintenance History
Not all equipment has a visible history of its maintenance and service records, but asking for these documents is an essential part of your due diligence. These records can give you valuable insight into how well the machinery has been maintained, which repairs it has undergone, and any major overhauls or parts replacements.
It’s wise to cross-check service records with the hours of use. A machine with high hours but no recorded maintenance raises red flags. Well-maintained equipment tends to have a longer lifespan, even with higher usage. If the auction house provides incomplete records, you can contact the machinery’s dealer for more detailed information on repairs and usage.
Understanding Auctioneer Guarantees and Limitations
When buying construction equipment at auction, it’s crucial to understand the terms of the auctioneer’s guarantee if one is offered. These guarantees can vary widely, but most auctioneers provide limited assurances about the condition of the equipment. In many cases, sales are “as-is,” meaning you accept the risks associated with any faults that aren’t immediately visible.
Some auction houses offer basic mechanical guarantees, but these are often limited to specific components, like the engine or transmission. Understanding the scope of what’s covered and what’s not is essential to avoid unexpected repair costs.
It’s also important to know that while auction houses might conduct their own inspections, their interests are not necessarily aligned with yours. Independent third-party inspections offer a more thorough and unbiased evaluation, especially if the equipment carries significant value.
Setting a Realistic Budget
Bidding on construction equipment can be thrilling, but it’s easy to get caught up in the heat of the moment. Before heading to the auction, set a firm budget, keeping in mind both your maximum bid and additional expenses.
When calculating your budget, factor in the following:
Buyer’s Premium: Many auctions charge a buyer’s premium, typically 10-15% of the hammer price.
Transport Costs: Depending on the size and location of the auction, transportation of the equipment can add significant costs.
Repairs and Maintenance: Even if the machinery looks good, you should allocate a budget for potential repairs, spare parts, or ongoing maintenance.
Having a clear budget ensures you don’t overbid or end up with a machine that’s out of your price range once additional expenses are factored in.
Third-Party Inspections for Peace of Mind
If you’re unsure about your ability to inspect the machinery or don’t feel confident in your assessment, consider hiring a third-party inspector. An independent inspector can evaluate the condition of the machine more thoroughly than most auction houses, giving you peace of mind before placing a bid.
Third-party inspections will typically focus on key areas such as:
Engine Condition: Testing for blow-by and checking oil samples for contamination.
Undercarriage and Tyres: Evaluating wear patterns to predict future lifespan.
Hydraulic Systems: Ensuring there are no leaks and testing the responsiveness of hydraulic components.
Diagnostic Testing: Running tests to assess internal systems, including engine diagnostics.
Although this may come at an extra cost, it’s a small price to pay to avoid purchasing faulty or soon-to-break equipment.
Final Thoughts on Construction Equipment Auctions
Purchasing construction equipment at auction can be a great way to expand your fleet without breaking the bank. However, there are risks involved that require careful evaluation. By thoroughly inspecting the machinery, evaluating its maintenance history, understanding auctioneer guarantees, setting a budget, and considering third-party inspections, you can mitigate the risks and improve your chances of securing reliable equipment at a good price.
Always remember, patience and due diligence are key when purchasing heavy machinery at auction. Don’t be afraid to walk away if the equipment doesn’t meet your standards, and always stick to your budget to avoid financial strain.
By following these tips, you’ll be well on your way to finding quality construction equipment that will serve your projects for years to come.
Need a Paint Touch-Up for Your Auction Purchase? Contact APT Spray Painting!
If you end up purchasing construction equipment from an auction that requires a paint touch-up or a complete repaint, APT Spray Painting can help get it sorted. They specialise in spray painting for industrial machinery, offering durable finishes that protect your equipment from the elements while giving it a professional look. Whether it’s a minor touch-up or a full repaint, their expert team will ensure the job is done efficiently and with high-quality results. Learn more at APT Spray Painting.
