If you’re reading this, you’re probably considering whether it’s time to get rid of your old construction equipment. Maybe you’ve been putting more money into repairs than is sustainable, or maybe your equipment is just old. Let’s look at six options for fixing or retiring your unusable equipment.
1. Rebuild it.
We understand—you’re here because you want to get rid of your old equipment, not fix it up. However, some machines are eligible for rebuilding and remanufacturing. A full rebuild will reset your machine to factory standards and can save you more money than buying new equipment.
Interested in a rebuild? Check out our rebuild process!
2. Sell it to a new buyer.
Even if your company can’t justify the cost and downtime associated with rebuilding or maintaining ageing equipment, there’s a good possibility someone else will want it.
Selling equipment directly can take longer than working with a broker, and it does put stress on your team because they’re suddenly acting as salespeople. However, even if it takes a while, it’s lower-risk than going to an auction and can yield higher profits. Since you’re handling the sale yourself, you can choose the sale price and avoid any fees.
Check platforms like Facebook and LinkedIn for equipment groups and post your equipment in them.
Want more information about how to sell your equipment? This article has 6 tips for selling ageing equipment and machinery.
What are potential buyers looking for?
Buyers, brokers, and anyone else purchasing your equipment will be considering these common factors:
- Appearance
- Age
- Mechanical/operational condition
- Hour meter
- Maintenance records
- Attachment condition
- Tire and undercarriage condition
- Resale cost
3. Trade it in.
Trade-ins allow you to work with a dealer, who will likely handle logistics like transportation and liability. It can be easier to trade your equipment than sell it, because the dealer can refurbish or remanufacture the equipment you’re trading in.
When you make a trade, you’ll save money on a new machine from that dealer or manufacturer. However, be aware that a dealer is the one who determine what the machine’s value is.
4. Put it up for auction.
If you don’t have time to wait for your equipment to sell, consider going to auction. Auctions are an easy way to sell your old equipment, and if your equipment is in high demand, you can probably find someone willing to put in the work to fix it up.
A downside of auctions is the potential for low returns, and the cost of transporting the equipment to the auction. If there’s a bidding war, you might make way more money than through a direct sale or broker, but if your equipment isn’t in high demand, you can potentially take a loss.
5. Find a broker.
Using a broker, like direct sales, gives you a moderately safer avenue than auctions. It’s also an easier and faster option than sales, because the broker handles everything from start to finish and uses their network to find a buyer quickly.
Brokers, as experts in their field, are a more expensive option than directly selling, so your company will have to decide whether to prioritize ease or financial returns. Always do your research before agreeing to proceed with a broker. Make sure the company or individual is reputable and trustworthy.
6. Recycle or scrap it.
If you haven’t had any luck with the previous options, there’s always the option to scrap the equipment. This is a good way to get rid of equipment that can’t be sold due to its condition. Most metal and scrap yards will gladly take apart your machinery to sell its material, and some scrap yards will even pay you for your equipment.
Final Thoughts
When your equipment is ageing and needs to be replaced, you have options. Your team will have to decide whether you want to buy new or rebuild your existing equipment. You’ll also need to consider what type of equipment disposal is best for you.
At Hugg & Hall, we’re here for you throughout the rebuild and purchasing process. Let us know how we can help you!
Need to replace your old equipment? Contact one of our salespeople today!