S11 ATR March 2022 Equipment_ATR - New Master Template 2016 24/02/2022 05:38 Page 38
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CONSTRUCTION | USED EQUIPMENT
New for old The market for used equipment in Africa is on the rise as companies rein in spending after the economic squeeze of the past two years.
Used equipment is often just the right budget fit for a limited, short duration contract.
T
he past couple of years, characterised by economic shutdowns triggered by the Covid-19 crisis, have taken their toll on businesses and their finances. It has made purchasing used equipment more appealing rather than buying brand-new. That has always been a common thread across many of Africa’s key industries, from construction to farming, where finances are tight. But in an environment where spending is being squeezed even more, it makes sense in many scenarios as an affordable alternative.
buyers,” it noted in a recent bulletin. The South Africa-based group delivers engineering support services to the energy, process, mining and construction industries, and is an exclusive regional distributor for many leading international brands, including the likes of DAF Trucks and Volvo Construction Equipment. But not all buyers are looking for new equipment, or able to afford it, hence the emergence of a vibrant used market. Used equipment is often just the right budget fit for a limited, short duration contract.
Good quality used equipment with low operating hours may also be an easier entry into the market for start-up companies with contracts where proof of machine ownership is a requirement. Key parameters buyers might look for when selecting used equipment, it says, include brand preference, duration of contract, as well as the production environment.
The right fit But what are some of the possible deal killers in buying used equipment, and what are the things that should make potential buyers
The rise of the used According to Babcock Africa, the current financial climate has made prospective buyers more alert to the used equipment market. Reduced budgets for new capital equipment, makes it “a more attractive option for prospective
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AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2022
Not all buyers are looking for new equipment, or able to afford it, hence the emergence of a vibrant used market.”
back away from a used machine? Lack of service records, clear ownership and proof of settlement, according to Babcock. To progress with a deal, it says, a good live test should be conducted with the machine’s condition where possible to tie up with the recorded operating hours. Purchasing from a reputable supplier is also essential given the rise of remote, unseen sales and online marketplaces. “Buying from a reputable supplier is of paramount importance, particularly in the current environment where the market is flooded with machines, and deals are often done remotely without seeing the equipment.” The brands for sale in the used equipment market are global names – from Volvo and Hitachi to Caterpillar and Hyundai – though many of the facilitators and deal makers may be less well known,
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