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Inspecting Used Equipment for Resale

If you buy used equipment to fix up and resell, your profit lives in the inspection. A missed problem eats the margin, and a found one gives you a stronger hand on price.

Key points

  • Inspect in order, starting cold, and keep notes and photos.
  • Check safety equipment first: ROPS, seat belt, shields and decals.
  • Walk away from structural damage, serious leaks or evasive sellers.
  • Use a mechanic for engines, hydraulics, brakes, steering and welds.

Where should you start when inspecting used equipment?

Start with a slow walk around the machine before you touch anything. Look at overall condition, stance, tire wear, fresh paint over rust or leaks and signs of past crashes or welding. A machine that sits crooked or has mismatched parts has a story you should hear.

Ask the seller why they are selling and how the machine was used. Compare the answers with what you see.

Take the opportunity to check the paperwork against the machine. Serial numbers on the plate should match any bill of sale or title you are shown.

What should you check on a used tractor?

Work through it in order so nothing is skipped. Cold-start the engine if you can, since a warm engine hides problems.

Take notes and photos as you go, so you can negotiate from facts.

Check the cold start in particular. White smoke that lingers, blue smoke or a long crank are clues. Do not run an engine with low oil or coolant just to see how it sounds.

What should you check on implements?

Mowers, balers, tillers and loaders have their own wear points. Look at blades, teeth, tines, bearings, gearboxes, drive lines and welds. Check hydraulic hoses and cylinders for leaks, rust on rods and cracked fittings.

Turn drive shafts by hand where it is safe to do so with the machine off and locked out, and listen for rough bearings. Look at the guards and shields. Missing guards are a safety issue and a cost to replace.

Make a short checklist for each type of implement you handle, so you check the same things every time and build a feel for what is normal.

Which safety items should you verify before reselling?

Safety equipment is not optional, and a machine without it is a liability for the next owner and for you. Check that the ROPS is present, undamaged and not modified, and that the seat belt works. Look for intact PTO shields, decals and lighting.

Never remove or bypass a safety device, interlock or seat switch to make a machine run or sell. If something is missing, replace it with the proper part from the manufacturer or dealer.

Document any missing safety equipment with photos and the cost to replace, and factor that into the price you pay.

What are the red flags that should make you walk away?

Some problems cost more than the machine is worth, and some are hard to see. Be willing to leave a deal.

Walk away if the seller will not let you inspect, or if the issue is beyond your skill or budget.

When should you bring in a mechanic?

For engines, transmissions, hydraulic systems, brakes, steering and structural welds, a qualified mechanic's opinion is worth the fee, especially on bigger purchases. A short pre-purchase inspection can save a large mistake.

For repairs on high-pressure hydraulics or fuel injection, stop and call a mechanic. Never check a hydraulic leak with your hand, because fluid under pressure can penetrate skin. Use a piece of cardboard or have a mechanic find it.

How do you account for repairs in your resale price?

List every repair and its cost, then add your time. Check what comparable machines sold for to see whether the margin still exists. A deal only counts if it works after repairs.

Keep the receipts and a record of what you did. A buyer who sees the work documented is willing to pay more, and you are protected if a question comes later.

A realistic estimate keeps you from falling in love with a machine. If the numbers fail, move on.

When to get help: Bring in a qualified mechanic or the dealer service department for engines, hydraulics, brakes, steering and structural welds. For resale records and taxes, ask your accountant, and use manufacturer parts and procedures when restoring safety equipment.

Sources and further reading

Organization homepages are linked so you can search them for current guidance on this topic.

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