When buying big, it pays to do your research. There’s no better feeling than owning the machinery necessary to get the job done, but there are a few pitfalls to navigate before you get there.
Did you know the heavy machinery sector is predicted to grow at a compound annual growth rate (CAGR) of 5.30% by the end of 2028? Heavy machinery is about to explode at an impressive rate despite the economic trouble of recent years.
Making wise investments is foundational to the success of any business. If you’re considering investing, read on to find out about the most common heavy equipment buying mistakes so you can avoid making them!
1. Buying New
When in the market for heavy machinery, you’ll immediately notice the differences in price between new and used equipment. When working to a budget, it’s important to remember that buying new isn’t always necessary.
Older models of the machine you’re looking to purchase are often available second- or third-hand. Don’t let their previous lives discourage you; heavy machinery is built to last. If it’s been well maintained, you might find a bargain and save yourself a considerable sum of money.
When the only difference between tens of thousands of dollars is a bit of mud and a few superficial dents and scratches, the decision makes itself!
2. Buying the Wrong Machine
Heavy machinery is specialized equipment. These machines are designed to do a certain job very well and are often sized accordingly. It might seem obvious, but a common mistake is to buy the wrong size for your purposes.
Bigger doesn’t always mean better. In the case of heavy equipment, bigger usually means more expensive to buy and maintain. Before taking the plunge and buying the model you think you need, shop around for similar machines with less power.
You might find something that suits your needs without going overboard on power and price.
3. Not Staying Within Budget
The purchase of heavy machinery should help to get work done quicker and more efficiently. This means your bottom line will look a lot more appealing at the end of the day. Machinery is supposed to make you money, not cost your last dollar.
Going into debt to get your hands on a new toy is a bad idea. The desire for the newest model is understandable, but it has to fit within a firm strategy.
Always stick to your heavy equipment budget and think ahead to plan for unexpected expenses. Otherwise, you might find your investment has turned into a liability.
4. Not Reading Online Reviews
One of the best sources of information available to anyone considering a large purchase is the review section of a product. Here you can see what other people are saying and glean some useful knowledge.
More often than not, people usually leave reviews when they’re either dissatisfied or particularly happy with their purchase. If a machine consistently leaves something to be desired, you can bet people will be mentioning it in the review section.
This is the type of information unlikely to be freely given by a seller and could potentially save you a lot of hassle down the road.
5. Brand Loyalty
It makes perfect sense to become emotionally invested in a brand that has served you well in the past. This only becomes a problem when it stops you from seriously taking alternatives into account. While you might feel a certain affection for a particular brand of machine, your budget might not.
Don’t pigeonhole yourself when it comes to expensive purchases. Look at every machine in terms of its price and reliability, and forget about brand loyalty.
You might find an alternative to your first choice that will surprise you in both price and capability.
6. Not Getting a Second Opinion
Ask around to see what others think. Online reviews are only partially helpful because it’s possible that they’re not legitimate. Asking someone who has rented or owned a particular piece of machinery is always a good idea.
A five-minute chat with someone with real-world experience can reveal a lot. Hearing the opinion of someone who isn’t trying to sell you anything and is just offering helpful information is invaluable.
Sometimes discussing a different perspective about the types of heavy equipment available can make everything clear and set you on the right path.
7. Not Sorting Out Transportation and Delivery
If a deal seems too good to be true, it probably is. Always remember to inquire about your heavy equipment provider regarding delivery distance and costs. Sometimes a machine will be listed cheaply to attract attention, only to gouge you on delivery costs.
Failure to make a deal that includes transportation is a mistake that can lead to unnecessary stress. Ensure delivery dates are agreed upon beforehand to avoid arguments and additional hidden costs. Sticking with reputable businesses such as MTC Equipment is a good idea to avoid dealing with the unscrupulous.
The world of buying and selling heavy equipment is no different from any other marketplace. There will always be people lurking around waiting to take full advantage of the unwary, so keep your wits about you!
No More Heavy Equipment Buying Mistakes
With a little forethought and some caution, you’ll easily steer clear of these heavy equipment buying mistakes. Take heed of these seven points and you’ll be able to relax knowing you’ve avoided learning the hard way.
If this article has helped steer you away from a costly mistake, check out the rest of the blog! There’s a lot more where this came from.