Heavy equipment is a valuable asset that requires a significant financial outlay. It is engineered to last and has an anticipated lifecycle of several decades. Once a project comes to a close, it can be resold to recoup a large proportion of the initial investment.
But as sales and marketing is probably not your core business, how do you go about getting the best possible return for your pre-owned machine, construction vehicle or equipment?
In this article, we highlight the top heavy equipment selling tips so that you can maximise your chances of a sale.
Optimise the condition of the equipment
Before you put your motor grader, bulldozer or heavy machinery and equipment up for sale, make sure it is in good condition.
Cleaning and repainting your machine, and doing small jobs like repairing the upholstery and replacing the decals, is a comparatively small investment that can attract substantially higher offers from buyers.
Set a realistic price
If you want your equipment to sell quickly, it’s essential you set a realistic price. Industrial machines and equipment have a much slower depreciation rate than consumer vehicles.
You can consequently expect a good return on investment, provided the equipment is in decent condition and has been properly maintained.
According to a government fleet advisory, you can calculate the annual depreciation rate by dividing the original purchase price of the machine or equipment by its anticipated lifecycle.
This will give you a ballpark figure you can compare against the advertised selling prices of similar machines and equipment posted online.
Get an independent appraisal
To ensure your asking price is well within the limits, it’s a good idea to have your grader, truck or machine independently appraised.
Specialist appraisers will assess the age and condition of the equipment, and the existing buyer demand, so as to give you a fair valuation of your asset. A written appraisal is also a great marketing tool you can use to support your asking price.
Support the sale
In addition to a written appraisal, you can support the sale by providing potential buyers with a copy of the maintenance records and other supporting documents.
A portfolio of recent photographs of the machine or equipment, showcasing the interior, exterior and all the major working components, is an easy way to display the best attributes of your asset.
Remember to be honest and upfront about any problems or issues inherent in the machine, and always invite serious buyers to view and test the equipment onsite, and on a date and at a time that suits them.
Find a suitable sales platform
There are several sales platforms for heavy industrial equipment and machines in South Africa. You can post an advertisement at online marketplaces like Gumtree, OLX and Junk Mail. This way, you’ll reach a nationwide audience and may attract buyers in other cities or towns.
You can also sell your asset through an auction house specialising in heavy construction equipment and vehicles, such as Velox Auctioneers, Auction Evolution and Nuco Auctioneers.
However, it’s important to note that at an unreserved auction, your asset can be sold at a price way below its appraised value. Moreover, a percentage of the sale will have to be paid to the auction house in fees and commission.
KH Plant: South Africa’s heavy equipment dealer
KH Plant is an excellent prospect for those of you who want to sell your 140G, 140H and 140K Caterpillar grader. We’re the premier grader rebuild centre and reseller of refurbished Caterpillar motor graders in the country.
We’ll pay you a market-related price for your grader on the spot, provided it’s in decent condition. Call us on +27 83 274 4882 or contact us online to set up an appointment.
