Can't Find the Right Equipment?
Used heavy equipment for home construction, logging, excavation services, mining etc. is going for a premium due to a number of reasons. Many dealership lots that were once crowded with inventory are now often sparse. There are many different theories as to why this is but the primary consensus in the industry seems to be that it is due to COVID. The construction of new equipment has waned due to labor and material shortages which has put the used equipment market at a premium. (The same can be said for used cars and trucks as they too are selling at all time highs since they were purchased new)
It is not just COVID that has created the situation, however. With interest rates still hovering at all-time lows the housing industry is still booming and compact equipment such as skid-steers, track loaders and excavators are in high demand and selling at a premium.
For years I have been a proponent of a significant Federal infrastructure bill. Of course this would take both sides of the aisle to agree that an infrastructure bill should designate funds for infrastructure hard costs like repairing bridges and roads etc. If that happens then demand for equipment will continue to increase. The business is good for the industry as a whole, however.
There are some places that you might consider looking for equipment that are a little more creative than just checking out www.equipmentrader.com and other popular sites.
Facebook market place - I recently had a customer who found what he needed on FB marketplace after an extensive search on other sites.
Consignment companies – these companies are constantly looking for equipment to list and sell. Just because something may not be on their website doesn’t mean that they don’t won’t have knowledge and where and how to deliver to you what you are looking for. Ask them!
Lenders repo sites – unfortunately every lender has a department to market equipment that they have had to repossess. This equipment is not always on the mainstream sites. The lender is not only very motivated to get the units sold but they will take care of all servicing and repair items needed. In addition, if you are still looking to obtain financing their underwriting rules are much more lenient when they are moving their equipment. Call me if you would like some ideas where to go
E-Bay – sounds strange as many of us think of e-bay as selling trinkets, collectibles etc. but often there is heavy equipment sold as well by private parties as well as some dealers. I can help with shipping options if you do find what you are looking for using this platform.
When purchasing through e-bay or other sites where you are dealing with a private party the funding process can get convoluted and drag out due to the seller not cooperating in a timely manner as well as the lender wanting more pictures and information then if dealing with a dealer. Due to this customers will often purchase for cash from their reserves or a short-term loan from family or friends. They then come to me to buy it back from them. This is called a sales-leaseback. Be aware that not all lenders allow this so if you are currently qualified for a loan make sure this is something they will allow.
All things considered construction equipment demand and sales for the remainder of 2021 look to be strong. Finding the exact essential equipment for your industry is important. If I can help in any way please call.
Have a fantastic month!
"One faces the future with one's past."
Pearl S. Buck
Did You Know???
Facts About Construction
- The Great Pyramid of Giza was the tallest structure in the world for over 3,800 years.
- Concrete has been the most popular building material throughout history.
- The average age of a construction worker today is 42 years old.
- Women comprise only 10.9 percent of construction workers in the field today.
- There are currently 1712.1 million tons of steel being used in the world today.
- There has been a 239 percent growth of drone use in the construction industry in the past year.
Just for Laughs!
I had some builders in last week doing rennovations on the outside of my house. It was quite a wet day when one of the builders approached the backdoor and asked me if he could please use my toilet.
I looked down at his extremely dirty boots and said, "ok, but let me just lay some newspaper down first".
He looked slightly offended and replied "It is ok, I am already trained".