What to Look for When Buying Used Equipment

[MikePhua]

The Rise of the Used Equipment Market
The global market for used construction equipment has grown steadily over the past two decades, driven by rising demand for affordable machinery and the durability of modern builds. Brands like Caterpillar, Komatsu, Bobcat, and John Deere have produced machines that routinely exceed 10,000 operating hours with proper maintenance. In 2024 alone, over $60 billion worth of used equipment changed hands globally, with auctions, private sales, and dealer resales forming the backbone of this dynamic sector.
For buyers, especially small contractors and independent operators, purchasing used equipment offers a chance to expand capabilities without the financial burden of new inventory. But the process demands vigilance, technical insight, and a healthy dose of skepticism.
Terminology Annotation
- Pins and Bushings: Rotational joints in arms and linkages that wear over time and affect machine precision.
- Grey Market Machine: Equipment imported outside official distribution channels, often lacking local support or compatible parts.
- Weeping Cylinder: A hydraulic cylinder showing minor fluid leakage, often a precursor to seal failure.
- DuPont Overhaul: Slang for cosmetic refurbishment—fresh paint and seat covers masking deeper mechanical issues.
- Compression Test: A diagnostic procedure measuring engine cylinder pressure to assess internal wear.
Visual Inspection and Structural Integrity
Begin with a walkaround. Look for cracks in welds, fractures in steel components, and signs of fatigue near high-stress areas like loader arms or boom pivots. Surface rust is often cosmetic, but deep pitting or flaking may indicate long-term neglect. Pay close attention to pins and bushings—excessive play suggests wear that can affect performance and safety.
Inspect hoses for fading, cracking, or bulging. Hydraulic lines under pressure can rupture violently, so any sign of degradation warrants replacement. Belts should be tight, free of glazing, and without fraying. Check the undercarriage for uneven wear, especially on tracked machines, where replacement costs can exceed $10,000.
Fluid Analysis and Engine Behavior
Open every fluid reservoir. Engine oil should be dark but not gritty; milky coloration suggests coolant contamination. Hydraulic fluid should be clear or amber, not cloudy. Coolant should be at proper level and free of oil traces. Smell each fluid—burnt odors may indicate overheating or internal component failure.
Start the engine and observe exhaust color. Black smoke indicates unburned fuel, often due to injector issues. White smoke after warm-up may signal a cracked head or blown gasket. Listen for knocks—these could stem from worn bearings or faulty injectors. Check the radiator for gurgling sounds, which may point to combustion gases entering the cooling system.
Operational Testing and Auction Limitations
If allowed, test the machine’s basic functions. Lift the boom, tilt the bucket, drive forward and reverse. Feel for hesitation, jerky movement, or unusual noises. Auctions often restrict full operation, so rely on brief tests and visual cues. If possible, bring a mechanic or experienced operator—two sets of eyes are better than one.
Be wary of freshly painted machines or new seat cushions. These may be signs of a DuPont overhaul, where cosmetic upgrades mask mechanical neglect. Ask about service history, and if possible, speak with the previous operator or mechanic. They may offer candid insights into the machine’s quirks and reliability.
Know the Value and Avoid Emotional Bidding
Research market prices before attending an auction. Know the fair value of the machine and set a firm ceiling. Bidding wars can lead to overpayment, especially when emotions override logic. Remember, the goal is utility, not prestige.
Avoid machines needing repairs beyond your capability or budget. Welding, painting, and minor hydraulic fixes are manageable. But major components like transmissions, final drives, or hydraulic pumps can be prohibitively expensive. A machine needing $15,000 in repairs may not be a bargain, even at half price.
Private Sales and Inspection Flexibility
Private sellers often offer more flexibility. You can request compression tests, operate the machine extensively, and negotiate conditional pricing. Many sellers will deliver the equipment or reduce the price to close the deal. Platforms like Craigslist, Kijiji, and regional classifieds are rich sources of used inventory, especially for common machines like skid steers and dump trucks.
In one case, a buyer found a 1-ton diesel dump truck with low hours and a full maintenance log. The seller allowed a full inspection, including fluid sampling and a test drive. The buyer negotiated a $1,500 discount and secured delivery within 48 hours. The truck is still in service five years later.
Conclusion
Buying used equipment is part art, part science. It requires technical knowledge, market awareness, and a sharp eye for detail. From checking fluid color to listening for engine knocks, every clue matters. Whether at auction or through private sale, the best deals come to those who prepare, inspect thoroughly, and know when to walk away. In a market where every machine has a story, your job is to read between the lines—and make sure that story ends with productivity, not regret.