Buying Equipment Online

[Welder Dave]

I don't think you have to worry too much at Ritchie Bros. While they have no way of knowing the condition of every piece, they aren't going to risk their reputation selling stuff with liens on it.

 

[daddy2kids]

If huge money is involved like this I wouldn't do it online. I would really make sure I get to see the equipments first before buying them.

 

[pachhh34]

what about buying new,unused online ?

 

[xr4ticlone]

One update...so the Cat loader went for $177k in MN today. It was a 980H, which is desirable because the K's were not good by all reports. (I've advised my guy to not touch anything that's a K.)

I was able to find out the hours were correct on the machine. The next step was hiring a buddy's retired dad, a former 30+ year operator at the concrete plant and farmer to go inspect it on site.

The report wasn't good. All types of little things that don't show up in the pictures. $200 very well spent. (He's a bargain...but tickled to get out of the house : ) But he knows his stuff. )

https://www.rbauction.com/2011-CATERPILLAR-980H?invId=9761871&id=ar&auction=MINNEAPOLIS-MN-2017173

Looking at the pics it's a nice looking tractor. Nothing jumps out at you.

His estimate was $80k+ to get it 'in good workable shape' plus 4 tires. (Said they're pretty much shot).

Found one today, same year, 3K more hours...but needs a transmission. $68,500. Now it'll take $90k & tires to get this one up to speed as well. BUT we're starting $100,000 AHEAD of where that new owner is today.

The other one is probably on it's way to getting a motor and tranny as well. 10k hours is my 'life expectancy' on motors and transmissions. Everything over that is a gift.

I'm 95% sure if I hadn't been in the equation he would have pulled the trigger on that loader today in MN.

 

[Welder Dave]

A lot of the bigger engines go well over 10K hours with proper service.

 

[StanRUS]

A lot of the bigger engines go well over 10K hours with proper service.

Yep, like over 30,000 hrs

 

[Silveroddo]

Lots of interesting info In this one...
My .02 on the matter. If your buying online site unseen don't risk anything more than your prepared to lose, also get a handle on shipping, you'll save you and your seller a lot of headaches. I sell a few pieces of equipment a year and they go all over the place, but nothing is more annoying than a prospective buyer that gets sticker shocked when you tell them shipping can run 1.60-3.50 or 4 bucks a mile. One thing about buying online, if you get burned once its an education you will remember.
On the municipal equipment, I can attest from working for a large state municipality that you have a 50/50 shot or worse of finding the stereotype of "good used municipal equipment". In our world over the course of the 10-15 year life cycles our Iron endures, its subjected to a large number of "Operators" that have a varying degree of experience and ability. I was going over a mid 90's cat 140 grader that I'd never run and while checking the trans dipstick, the dipstick and tube came off completely. after some investigation, somehow (I don't even want to know) the dipstick tube was broken off of the transmission and whoever first identified the problem, had ziptied the tube back in place, just hanging there. No idea how long the machine had been run that way, there was definitely junk in the oil, after the "mechanic" welded it back on I asked him if they were going to change the oil, the response " that's what filters are for".
This fall we had a versatile Bi-directional mower tractor that was hitting the auction block, we were the last ones to use it before it went and it seemed apparent that the 4-wheel drive wasn't working, couldn't really find anyone that knew anything about it so we never got any conclusive info in it, told the shop manager about it but he shrugged it off and it went on the block with no disclaimers. I was at the auction and got to talking to a guy that was looking at it and evidently had had a few of them and came to the conclusion that there was probably something semi serious wrong with it, it sold to the highest bidder for a pretty strong price, and I'm sure that guy wasn't happy when he got it home and found out he'd bought a 2x4 bi-directional tractor.
Inspections go a long way, best $350 we ever spent was to an inspection company to check out a gray market excavator at a dealer in Washington. When he sent us the reports and the pics, the machine in the listing was the one they had gone through and painted, the one you were buying was one of the other 10 that came off the boat.....

 

[Ryan Vanhorn]

Prior to starting my new position as a warehouse and operations manager, I was responsible for purchasing. I regularly purchased equipment, both new and used, online. I recommend the following:

• Contact the Seller Before Making an Offer: If you’re using a good online marketplace, you will be able to contact the seller first before you make an offer to buy. You can ask a simple question about the item or ask to talk to them over the phone or email. Set up a time with the seller to inspect the equipment in person if at all possible.
• Do a Google Check: Use the Internet to your advantage and conduct your own investigation into the seller. Sellers that are selling on online marketplace will often have their own website, or may have sold on other platforms. Simply typing the word "review" after the seller's name in an online search engine will often bring up reviews by other customers.
• Ask for a Reference: Any legitimate company you want to do business with won’t hesitate to give you a reference. Ask the seller for the contact information of someone they’ve done business with in the past and call them. When you do talk to the reference, ask about their experience in buying from the company and if there were any hitches or problems.
• Use Reputable Sites to Source Equipment: If you’re buying online, make sure you use a marketplace with a good reputation. Aucto, for example, screens both sellers and buyers. NRI Parts is another seller that has never let me down.
• Pay through Protected Payment Methods: Protected payment gateways such as PayPal and credit cards also add an additional layer of security for buyers. Look for sellers that accept such payment methods.
• Watch for Red Flags: Sometimes, there are common red flags when transacting with sellers online. For example, if a seller asks to use an unknown payment method or asks for your bank account information, be wary. If they are communicating with you using public email addresses (like gmail or yahoo) instead of a company domain, this too is cause for concern. In general, trust your instinct – if a deal seems too good to be true, it probably is.

 

[Smokin Joe67]

I had a customer interested in a used compact tractor and i wanted to show him exactly what he was buying since he's taking from FL to Ohio. I took a video of the complete machine with it running and had him look at it on You tube and he bought it. No surprises and it was described exactly the way he wanted it. It's so to **** someone off and have a bad review on the net sellers really need to be careful. He was so happy he left me a great review on google, my first review. With FaceTime, Skype and you tube a top notch seller will have no problem doing this for you. If they don't have enough time to show you everything then they don't have enough time for your money.

 

[truckconnect84]

Hello,

I am just wondering if it is safe or within reason to buy equipment via online without seeing it in person.

For example, if I am in Oregon and I see a good deal online for a loader in New York and I did not want to fly out there I could just do the transaction online.

What do you think about buying online? Is it even heard of?

Thanks in advance,
Regards

Make sure if you do buy online you go through a reputable dealer. I work for a large commercial truck and heavy equipment dealership in the Atlanta, GA area and we sell all over the country. Many times we never see the buyer, everything is done over the phone and through email and then shipped to the buyer. We service all our equipment and trucks and make sure they pass inspection before we sell. If the seller you are dealing with is reluctant to share any info or send detailed info and pics of what you are buying I would be hesitant to do business. Check out our website to see what we have! www.jwtrucks.com or www.oakwoodtrucks.com

 

[kellybarunimate]

i don't think it's unsafe,first you can try some heavy equipment spare parts or try to let the sale send u some samples of the small tools which is not too expensive , you check the quality, second you chat about some technical problems and see whether the supplier are professional. last when u buy some equipment in high price you'd better come to city to check the quality yourself, after build a long term cooperation you can trust.

 

[thierrys]

Machinery Marketplace is letting you to search for equipment for sale around your area. Then you can physically heck out the equipment before you buy. So use online for searching but buying is offline. It's much safe that way. Check it out at http://machinerymarketplace.net

 

[JAdams]

I've sold for dealerships for 10+ years before recently going out on my own equipment brokering with a buddy. He had sold and bought some things prior, many times with me consulting him. My first sales manager, and still good buddy, worked for a Deere dealer for 15yrs, did his own thing for 14yrs, and then was sales manager for the Case dealer we worked at for 12+ yrs. He's the most skeptical person in the world at this point. : ) Between my experiences and his I can keep you from ever buying anything. : )

Here are some of my thoughts...take them for what it's worth. I know that contractors know their equipment and you know how to use it. But just like I understand the basics of construction I'm not about to go bid a pipeline job or a dirt job tomorrow because I don't know all the problems that only working in that world every day teaches you.

A. Gov agencies are just as big of liars and nothing is guaranteed as far them taking any better or worse care of things than any other contractor.
- My WORST tractor was a Gov agency Cat mini that was a 900 hour POS. It had never in 8 yrs had oil or air filter changed.
- Recent skid loader had blow by & 2 flat tires when it showed up despite a call to the fleet mgr assuring the machine was nice, clean & ready to work with 40% tires.
- A crack sealer we bought was 'missing' the hose & gun...$2500 worth the parts as they're heated & not readily available from outside sources. : (
- Worst of all most get suckered into over paying for Gov machines with this false idea they are premium machines.

B. There are a lot of not so good folks working in the equipment market. Due to lack of title and high values the market is ripe for fraud.
- Even if you get the machine & it's ok....without doing a lien check you may be buying it twice. Making sure the machine is free & clear isn't something most buyers do...but should do every time. http://www.ner.net/ironcheck.html My old boss' wholesale buddy bought a D8 from a guy in person after inspection. When they went to pick it up owner stopped them & asked what the hell they were doing. He had 'bought' the D8 from the owners deadbeat, drug addict nephew who lived in the shack next to his biz.
- We've gotten stolen cashiers checks...as in real cashiers checks that were stolen from a bank & made out for purchase.
- We've had a 'buyer' that went through all the right motions on a 5 yard loader for over 30 days...wanting more pics and video...trucking cost...and then invoice for his bank. ONLY to have him take the logo off the invoice and use the wire routing # to make his own checks. Lucky for us we had a 'catch account' with another number that only had a $1 in it to catch wires. I know a Deere dealer that lost hundreds of thousands in this same deal.
- My old boss bought 3 stolen backhoes out of CA. He was suspicious of the deal and called every agency out there to check. None were stolen. The guy took the pics on the job and stole them AFTER he bought them.
- I've got 20 more stories too....

C. You know brands, you don't always know tractors. You know your tractors, people who do what I do know what you know about your tractors and everyone else they deal with's tractors. Give me a mfg and I'll tell you tractors you should NEVER own that they made. I can probably tell you many of the issues with those models and what to look for...and if I don't know I've got 50 people that do what I do I can call to ask.

D. You know who to call for diesel, pipe, materials, and everything else to do a job. I know enough people in the equipment world to know if I trust them or not...and if I don't know them personally I know enough people in this world to call to see if a guy is a lying scumbag. I'll be honest, I've got a few guys I thought were ok only to find out they've done some shitty deals. I check EVERYONE & I'll still ask about people I know if I don't know them all that well.

E. Auctions. IMHO they're all suspect, the smaller they are typically the shadier. Keep in mind, even large 'reputable' auctions like RB aren't looking out of buyers. They'll sell anything regardless of condition. So never assume it's not a POS just because it's at auction.
- In my world auctions only serve one purpose....to ensure that you never have to meet the buyer. As my old boss said 'if you bought a tractor from me at an auction...you got f'd'. His other saying was 'auctions are a great way to learn the value of a dealership'. Keep that in mind.

Final thoughts...
- Without doing background checks hour meters are suspect. I've got contacts with every manufacturer or one of their dealers that let me find out what warranty / work was done to a machine and what hours were on it at those dates. Just did it for a customer on a large Cat loader for a customer. Hours seemed low for the year, but my cat contact showed work done on it 6 moths ago and the #'s match. I was able to find out a Deere 544J had 6k hours...not the 18k that the machine was showing. I could also
find ownership history. Honestly, even a lot of the people in my world don't have those contacts. The 544J is owned by another wholesaler who couldn't get answers from Deere...and he's been doing this for 30 years.
- It's what you don't know that'll kill you. Don't assume what things will cost to fix. Don't assume that something is a good deal without checking first. "One of those must cost way more than that! I should buy this one!" WRONG. : )
- Please don't try to be equipment flippers. I'm so tiered of seeing customers over pay for stupid **** then calling me 'You've got to help get me out of this tractor'. There is a reason it was so cheap. No...no one wants a Terex. No, even I can't get decent money for a 2wd backhoe. Yea, that's because a transmission is $45k. No, you can't get a rebuilt motor for $6k anymore. No, you don't want to know what it's really worth.


- You have accountants, lawyers, engineers, and other professionals that help you with your business. FIND A TRUSTED BUYER / AGENT to help you buy equipment. Even new stuff...right now there are some major price differences out there. Depending on your sales rep and dealership you could be talking tens of thousands of dollars. There are also new tractors that you don't want to own.

You are correct - I really like what you have written here and appreciate it very much. Especially that this environment is ripe for fraud. I sure have seen it. Grew up in equipment business, 64 years. The greed and fraud was incredible, including a few of my own family members. Employees were the best. Honest and hardworking. I think I am going to write something up myself, like a short book - just for the heck of it. Thank you for posting this.

 

[Richard Balston]

buy equipment via online it's like 50-50 chances wheather you get good deal or get wrost deal. So if you shop something big or means to say pay higher money then you have to visit the store personally otherwise for small amount you can go online and buy equipments from the best dealers.
cheers...