Whether you’ve picked out a spiffy new piece of commercial equipment and would like to be rid of an old one or you are just trying to turn an idle asset into cash, at some point, if you own used commercial equipment, you’ll need to sell commercial equipment!
Fix your equipment up a bit
If you are like most people, you’ll want to sell your used commercial equipment on an “as-is” or “as-seen” basis. That doesn’t mean that you shouldn’t make that equipment as attractive to prospective customers as possible. How often do you look at an old rusty piece of used equipment and think, “Boy, I gotta have that!” – probably never! But, take that rusty equipment, sand it, prime it, and paint it and it suddenly looks like it just rolled off the lot, as they say!
The first thing the prospective buyers of your commercial equipment will be looking at is its appearance. Take a look at any accessories. Are they worn-out? If so, remove or replace them. Are they dirty? If so, clean them. Make sure the commercial equipment and all of the attachments that will be included shine! You may well see that putting in a few hours of work will increase the selling price of your used equipment by 20 or 30%; maybe more!
Be sure you keep a file of receipts and documentation that clearly outlines any major repairs or improvements you’ve made to your equipment. Don’t forget to gather up any warrantees, too. Include those in the documentation package.
Advertise Your Commercial Equipment
There are a variety of media available to help you sell your equipment. Some services are strictly free or paid classified listing services, others will take your equipment on consignment and do the heavy lifting for you. If you are going to go-it-alone, pay attention to your ad.
Keep your ad short and to the point. Make sure all pertinent information about year, make, model, and mileage is present for trucks and commercial vehicles. Also, be honest and thorough when making representations about the general condition of the equipment. A thorough condition statement will engender trust in your prospective buyers. A buyer who trusts will offer more money than one who does not. Finally, itemize all major improvements you’ve made to the equipment. Keep the ad short, but give enough information to let potential buyers get a good feel for what you are offering.
Do a good job with your photos. Use the highest resolution, color digital photos you are capable of taking and publishing. You know how the saying goes: A picture tells a thousand words. The photograph will be what initially attracts prospective buyers to your commercial equipment for sale. Take plenty of photos and then pick the best five or 10 to add to your listing. Make sure the photos are clear and in focus, try to include an overview picture from a distance, a close up picture of a particular item of interest and photos from all angles. This will give the potential customer a good overall perspective of your item.
Coordinating the sale
Whether you are selling your commercial equipment on your own or going the consignment route, you’ll want to be as accommodating as possible to your prospective buyers. If you have provided a number or email address that is best to reach you, be available and answer inquiries promptly. It is also highly likely that prospective buyers will want to come out to see larger, more costly commercial equipment before they buy. Try to set appointments to meet with buyers during daylight hours if the equipment is stored outdoors and when others are less likely to be around. Obviously, be ready to demonstrate that your equipment is operational if that is what you represented in your advertisement.
Documenting the sale and collecting your money
Be very careful here. Document your sale with a bill of sale, i.e., a legal document you put together and provide to your buyer that reports that on the date and locality of the sale and for a particular sum of money and/or other value received, that you sold your item to the party referenced.
Your buyer may request a Purchase and Sale agreement (agreement to buy) in advance of providing funds if the exchange of cash and the equipment do not happen simultaneously.
For titled commercial equipment, you’ll need to be mindful of your state’s regulations regarding title transfer and documentation. Any reputable consignment company will be able to handle this work for you.
Be very careful when collecting your money. Do not extend credit to your buyer unless you are experienced in credit and collections best practices. Cash or wire-transfer is preferred. Any reputable company handling the sale of your asset on consignment should have clear practices and protocols to protect you during this final stage of the sale.
Don’t fall prey to the myriad schemes that exist to get your equipment for free. Follow these steps and, if you are selling your equipment without a reputable consignment partner, stick to these methods for completing the sale.
