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equipment repair for resale

Discussion in 'General Industry Questions' started by hammerdwn20, Jan 20, 2009.

  1. hammerdwn20

    hammerdwn20 Well-Known Member

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    not too long ago i started repairing lawn and garden tractors and then selling them ebay. Its not a lot of work and turns a decent profit. This past weekend i picked up a kubota tractor for 500$ and it got me thinking about doing the same thing with smaller equipment (skidsteers,mini excavators and backhoes) What are my options for locating basket case equipment? i use ebay and craigslist for mowers but equipment isnt as common. auctions always seem to be out of control. whats your opinion?
     
  2. hammerdwn20

    hammerdwn20 Well-Known Member

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    btw i contacted 2 local equipment dealers to see what they do with their old crap. auction probably
     
  3. 992G

    992G Well-Known Member

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    An auction would be your best bet, however need to be able to get there days before, inspect the machines you are interested in, then go home and do your research. Need to know parts cost's, what going rate is for machine when fixed, but mainly is there a market for it when you are done. How long would you be able to sit on it before it starts costing you money? Right now with times the way they are, and from watching auctions, it is a buyers market. Sellers seem to be taking it in bad.

    Another big factor, transporting machine, and place to keep it? I would say for a person who had some extra money and wants to tie it up for a little while, the return could be good, but as anything else, are you willing to take the chance? If you would specialize in a certain type of machine, it might be better, find something that there is a big demand for but not many people deal with in your area.

    That would be my suggestion, do not know if it would work?
     
  4. hammerdwn20

    hammerdwn20 Well-Known Member

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    Luckily i have a great boss. i can use the trailers and truck when i need them. hes even offered shop space. I already check prices and parts on my mowers before i get them so this wouldnt be to different. just more money and another market right.
    btw the bobcat dealer is having someone contact me tomorrow about an old m600. probably not worth getting involved with because of the age but we'll see
     
  5. 992G

    992G Well-Known Member

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    $$$$$$$$$$$$$$$ is what it's all about. If you have cash in hand, it makes a world of difference. Do some research tonight on MachineryTrader.com. Look at the prices, that way when you go and look at this one you can compare somewhat.

    More money, and a smaller market than lawn mowers. For a bobcat you could try turning it around to a landscape service, or somebody wanting to get into snow plowing. Check that out also.
     
  6. stumpjumper83

    stumpjumper83 Senior Member

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    hammer, I've been doing the same thing as your talking about for the last 5 years. Mainly farm equipment but some construction equipment as well. Here are a couple of tips.

    1. Know what your looking at. This means the final selling point, the repair costs, and the weak points of the given machine.

    2. Expect to get burnt. Sooner or later in this business you will buy something that you shouldn't have and you need to be prepared to loose all you have invested in it. Every guy I know in the business has been burnt once or twice.

    3. Be prepared to sit on something untill you can find a buyer. You can reduce this by sticking to popular machines, and by keeping your price down, but sometimes you just have to wait.

    4. If it sounds too good to be true, it probably is.
     
  7. hammerdwn20

    hammerdwn20 Well-Known Member

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    stumpjumper are you getting your equipment from local people or auctions?
     
  8. HeyUvaVT

    HeyUvaVT Senior Member

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    i do this with jeeps...its a good business if you can stay within your budget and dont get too carried away...equipment would be alot of fun to do this with...i just dont have enough knowledge of diesels...i know plenty about hydraulics but little to nothing about the technical side of diesels...
     
  9. hammerdwn20

    hammerdwn20 Well-Known Member

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    i was an automotive mechanic for three years (got tired of being treated like crap so i changed jobs) and have always tinkered with anything that had a motor. i repair our machines at work so why not do it on my own. i might stick with mowers until i come across a machine that i feel comfortable with.
    on a side note i got the gearbox apart on the kubota using electrolysis. the side cover was siezed to the sector shaft. amazing what a little electricity can do
     
  10. stumpjumper83

    stumpjumper83 Senior Member

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    hammer,

    I don't purchase too much at auctions because informed, skilled, and knowledgable people go to them and bring their checkbooks. If your going to purchase equipment at an auction, you need to inspect stuff the day before, and know what its worth. Its easy just to knod your head another time and pay too much.

    I don't buy equipment from dealers because if it was worth it to fix it, they would have done it. They have the people, tools, parts, and knowledge, + they have regular customers.

    I buy from private owners all over pa, ny, & md. I find that I can get better prices, and as much time as I want to inspect, run, and think about purchasing a particular piece.
     
  11. Construct'O

    Construct'O Senior Member

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    If you was already running a bus like landscaping or some other type of work that you could use the equipment in between would be a plus.Chance of that and having time to work on things would make for a long day.

    Then there is the rent thing to get some cash flow,for the machine while it is setting waiting to sell,the person that you rent it too might even want to buy it if the price was right and was impressed enough in it?Lots of worms there ,but a thought!

    For me i have never been able to buy something to use short term and resale it for more money then i gave,or even break even.When i buy a piece of equipment i buy it to keep for longterm.Good luck:usa
     
  12. hammerdwn20

    hammerdwn20 Well-Known Member

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    Im only working 40 hour weeks so it gives me time to mess around with things. i usually get home around 4 and tinker for a few hours a couple days a week. weekends depend on how motivated i feel.

    Kubota is running now. got home and threw the new lift pump on, bled the system, heated the plugs and she came to life. feels good
     
  13. earthmover1984

    earthmover1984 Member

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    Better yet, Don't buy basket cases. Buy low priced equipment, that has a higher resale value. Their is money to be made. How do you think used equip. only dealers thrive??
    This works for me as well as fixing up old crap!