Rehabbing Skid Steers For Resale

I've started seeing some used skid steers for sale on Craigslist and Purplewave at some fairly low prices and I was considering buying a couple to rehab for resale. I have an above average mechanical ability but nothing specific related to skid steers--plus I have associates who have better mechanical skills than I but also nothing specifially related to servicing skid steers.

Anybody out there ever try this and have any success or should I throw my money into the Powerball drawing? Let me know.

MillernKansas said:

I've started seeing some used skid steers for sale on Craigslist and Purplewave at some fairly low prices and I was considering buying a couple to rehab for resale. I have an above average mechanical ability but nothing specific related to skid steers--plus I have associates who have better mechanical skills than I but also nothing specifially related to servicing skid steers.

Anybody out there ever try this and have any success or should I throw my money into the Powerball drawing? Let me know.

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I would say your chances of making any money at that would require you to be savvy on the skid steer market, know what it would take to get a skid steer resalable. Some machines that maybe tricky, I am speaking of BC specifically. They in my view take some specific knowledge especially when resolving electronic issues of which there are many. If you stuck to older models you might make a buck or two but the market still is soft so finding buyers could be an issue depending on your area.

If you watch the market, go to auctions you can pickup a variety of equipment cheap and resell it. I seldom go to an auction and not buy something. I have come out well on nearly everything I have bought and resold.

This issue is all depends on the cost of parts and what you think your labor is worth. Right now all the markets for equipment are flooded with iron. If you can purchase the iron right and be able to sit on it awhile you have a chance at some profit in the future.

Canada, from what I hear, hasn't been hit as hard as the US. For here I probably wouldn't try it till next spring when things have settled out after the elections.

Seems to me that only newer really nice stuff is selling right now. The market is flooded (as said before). Buying an older machine and trying to resell it would be a crap shoot right now.
Not being negative but i think i would hold on to your cash for the moment unless you could steal something and already have it sold before you buy it.
Just my input from what i see happening, i have been doing the same thing for a few years and still have a few items i cant get rid of!

If you're basing the profitability strictly off of asking prices, keep in mind that many sellers are selling for significantly less than their asking prices.
If there are a lot of cheap machines on the market, it's an indication that the market is saturated.

There's the potential to make a little money, and theres the possibility that you might spend a few grand learning about how skid steers are put together.

In the KC market, any thing will sell if it's cheap enough, buy cheap (70% of low low auction value) and sell cheap, dont put anymore money than necesarry and turn a quick small profit.

Pj

Thanks for the beneficial comments.

joispoi said:

If you're basing the profitability strictly off of asking prices, keep in mind that many sellers are selling for significantly less than their asking prices.
If there are a lot of cheap machines on the market, it's an indication that the market is saturated.

There's the potential to make a little money, and theres the possibility that you might spend a few grand learning about how skid steers are put together.

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I just got really lucky with a purchase of a skat trak skid steer, the people I bought it from had a "so called mechanic" that had supposedly been working on them for 30 years (lol) and he wired everything backwards:Banghead I have never worked on one before and after about 3 hours figured it out and have it running great, the fuel cutoff solenoid was bad and volvo and kubota neither could find the part, I looked at a bobcat and it had the same part, $97 bucks alot of rerouting wires and the machine works and runs flawless, I got lucky, be careful

It can be done, but one thing I've noticed w/ craigs list is if its cheap and a good deal its gone in a matter of hours, if its cheap and on there for days or weeks, theres a reason.
Like someone said earlier, iron is cheap right now because theres so much of it on the market. make sure you take that into consideration.
the contractor market probably isn't there for a cheap skidsteer so if you get one off craigslist your probably looking at selling it to a homeowner or hobby farmer or something. Paint and a good seat go a long ways when your selling something like that to the typical homeowner that doesn't know anything. (Not saying take a piece if junk and give it an enamel overhall to sell it, theres enough of that that goes on, it just needs to look decent)
As with everything in life theres an angle and 10 other guys trying to do the same thing your doing. Figure out everything you can about the machine, who's going to buy it, etc. when your looking at somthing if it doesn't give you that warm fuzzy feeling don't be afraid to walk way, you don't make much money by being optimistic on on those deals.

Just recently I tried that with an M444 bobcat, just broke even if anything... I bought it for a good price but it was immediately obvious the engine would need an overhaul. I mostly bought it for something to do in my spare time, I seemed to have lots of that last year. I had a hard time finding parts for the engine and when I finally did I didn't have time to do anything with it for some time. When I finally got it back together I managed to sell it for what I paid plus what the engine cost me, but not much in the way of my time... So all in all like the other guys said it really depends... Good luck!