How Does Used Excavator For Sale Work?

An excavator is a type of heavy equipment that utilizes a boom and stick to complete a variety of tasks around construction sites, landscapes and other industrial and residential projects. They are useful for things like:

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• Demolition
• Digging
• Material handling
• Mining
• Forestry
• Roadwork
• Worksite clean-up

Excavators are available in various types and sizes, and the cab rotates, which makes them an ideal solution for those who need to tackle a variety of functions. If you're looking to add a robust and adaptable machine to your lineup, investing in used equipment is a great way to save money and get started as soon as possible. Read on to learn more about what to look for when buying a used excavator.

If you're looking to purchase an excavator, you can choose to buy either a brand new machine or shop the used equipment market. While a new excavator might be the right choice for some, many choose to shop used because of the lower start-up cost, diverse selection, minimal depreciation and perks of machine ownership.

If you've decided buying a used excavator is the best option for you, there are a few things you need to consider before you begin your search.

Different excavators serve different purposes. To make your search for a used machine quick and easy, narrow down your options by considering the following:

• Size: Excavators can be compact, standard or large. Consider the type of work you plan to do and attachments you will use to determine the best size for you. Keep in mind that smaller machines are easier to maneuver, transport and store, while larger excavators are a more powerful and durable option.
  
• Type: What kind of work are you going to use your excavator for? Different machines can do different tasks. For instance, a suction excavator can loosen and move dirt, while you would use a dragline excavator for strip mining. Other options include crawler, skid steers and long-reach excavators.
• Track or wheels: Instead of wheels or tires, a tracked excavator uses thick, movable tracks to navigate steep inclines or slippery conditions. They are heavy, which makes them stable while in operation. Wheeled excavators have large tires and are ideal for standard operating conditions. Because they are lighter than tracked machines, they are less likely to damage sensitive terrain.
• Attachments: Consider what types of attachments you will need to purchase along with your excavator, such as augers, compactors, grapples or rakes. Always confirm the compatibility of your excavator and attachments before purchasing.
• Transportation and storage: Although the initial purchase of your excavator is an important step, it's not the only cost to consider. Before you bring your machine home or to the worksite, consider how you are going to transport and store it when not in use. The larger your excavator, the more challenging and costly it may be. Having these logistics figured out before making your purchase is the best way to avoid surprises and keep unexpected costs to a minimum.
• Preventive maintenance and repairs: Routine preventive maintenance is crucial for staying on top of your machine and catching small issues before they grow into larger ones. Should something malfunction or behave abnormally, do not wait to contact a professional to take a look and make any necessary repairs or replacements. The better you take care of your excavator, the longer it will last.
• The reputation of the dealership: One of the most important tips for buying a used excavator is to choose your dealership carefully. Before agreeing to see the excavator, take the time to research the company or individual you're going to work with. Read third-party testimonials and verified reviews and ask to learn more about their return policies, warranty program and any other pertinent information. Never agree to purchase any type of heavy equipment unseen or without first performing an inspection.

To help you find the perfect equipment, consult this used excavator buying guide before you begin your inspection. Inspections are encouraged and expected. If you're working with a used machinery dealership that does not want to participate in an inspection, you should consider searching elsewhere. Four things to check before buying a used excavator include the external condition, internal parts, performance and quality of the dealership service.

1. Examine the External Condition

The first thing to inspect is the external condition of the excavator. Some damage, like scratches or rust, is easily visible without too much investigation. Other areas, such as the undercarriage, might require a closer look.

• Frame: While minor cosmetic blemishes are normal for a used machine, make sure the frame of the excavator is free from significant or problematic dents, scuffs, rust, scratches, paint chips or warping. Excessive damages could mean the machine wasn't properly cared for. Check that all welded areas are intact and that each hinge and latch are functional.
• Cleanliness: Consider the overall appearance of the machine, including the cab, frame and any windows. A reputable dealership will not sell an excavator that is caked with dirt, mud or other build-up.
• Tires or track: If you're looking at a wheeled excavator, make sure the tires are intact, full of air and free of visible damage. Be sure to ask the dealership how long the tires have been in use. For tracked machines, count how many tracks are on the belt and if any are missing or damaged.
• Undercarriage: The undercarriage of an excavator accounts for half of the cost of ownership, so don't sign any papers until you've inspected yours carefully. Check for any dents, holes or oily residue, as all could be signs of misuse or internal damage.

2. Check the Internal Parts

Once the outside of the machine passes your inspection, it's time to begin a more detailed inspection of the machine's internal components.

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• Wiring: Inspect the quality of all wires and note any damages or frays. Turn the lights on and off to test functionality.
• Fuel: If you see or smell fuel or emissions while the excavator is running, this could indicate a serious problem or internal leak. You should also check that the fuel cap tightens securely and that the fuel inside does not smell expired or tainted.
• Battery: Check that the battery is secure inside the battery box and that all terminals are clean and not corroded. Check for stains, sticky spots or residue, as these could be signs of leaking oil or fuel. Note the expiration date of the battery.
• Cab: One of the most important things to look for when buying a used excavator is a safe and comfortable cab because this is where you will spend most of your time while using the machine. Sit inside the excavator cab and note the condition — is the seat comfortable and free of rips or holes? Do you have a full range of vision? Do the steering and gears work correctly? Are there any scratches or cracks in the windows?
• Hydraulic system: Inspect the hydraulic cylinder, lines and pump for cleanliness and make sure there are no visible leaks.

3. Test the Performance

The performance test is a critical part of any inspection. This is where you get to see how the machine feels when you operate it and consider whether it's the right piece of equipment for your job.

• Start up and shut down: Turn the excavator on and listen for any unusual sounds, such as rattling or excessive noise. If the excavator stalls or turns over when you try to turn it on, something may not be working correctly. Test the swing of the arm, as well as the control panel. Once you've tested the performance of the excavator, turn it off and continue listening.
• Attachments: If any attachments come with the excavator, inspect their condition, quality and compatibility with the excavator.
• Accessories and features: If your excavator has any additional features, such as built-in air conditioning or satellite radio, make sure they operate correctly — especially if you're paying extra for those options.

4. Consider the Service

Even when the excavator is in perfect operating condition, you need to consider the company you're working with and the services they offer. Make sure you ask plenty of questions about the equipment, as well as the dealership's policies:

• The history of the machine: Ask how old the excavator is and how many hours of operation it has seen. Ask the dealer to include information about the machine's performance history, including any previous issues or repairs made.
• Safety features and compliance: Verify with the seller that the excavator is safe to operate and that all safety features, including the brakes, cab, fire extinguisher and alarms, are all compliant.
• The year and model: Record all important information about the excavator, including the year, make, model and serial number. Keep in mind that if the excavator is very old or from an uncommon manufacturer, you may struggle to find replacement parts or repair service if necessary.
• Comparison to the listing: As you gather all the information from your inspection, compare it to the sale listing and see how the details match. Did the seller leave out any noticeable damages? Does the price seem justified? Ensure all documentation is included with the excavator, including the user manual and any manufacturer warranty information.
• Warranty and support: Finally, ask the seller or dealership what kind of warranty, return policy and after-sale support options they offer. A good dealership wants you to get the most out of your purchase and will do whatever they can to make sure the excavator you choose is right for you.

While using these used excavator inspection tips is a great way to make sure you're getting a quality excavator, nothing offers peace of mind like working with an honest, reputable Cat® dealer.

When you work with a dealer on Cat Used, you get:

• Access to an extensive network of Cat dealers: Cat Used has a large network of dealerships across the United States with a range of heavy equipment, including excavators of all types and sizes. No matter what kind of machine you're looking for, your Cat dealer can help you find it.
• Quality and support: Your Cat dealer cares about your experience while shopping for and using your equipment. That's why there is a strict rating and inspection system for all of our used machinery before we even list it as a part of the Cat Used inventory. Your dealer may offer Cat Certified Used equipment, which is selected, inspected and serviced to a higher standard. You can view those inspection reports on our website to learn more about the excavator you plan to purchase.
• Flexible financing available: Our network of dealers know your time and money are valuable, so they will work with you on financial assistance and can offer flexible plans to help you get your Cat equipment when you need it.

Visit us online to learn more about Cat excavators and browse our inventory of used equipment to find the machine you need for your next project. To get started, find a Cat dealer in your area or sign up for alerts, so you know when the equipment you need becomes available.

It’s dependable. It’s versatile. It’s already a staple on just about every construction jobsite and only growing in popularity.  
It’s the excavator. In EquipmentWatch’s State of the Construction Equipment Economy whitepaper, done in partnership with the Association of Equipment Management Professionals, excavators are noted as the top machine on fleet owners’ minds coming into , with 63% of those surveyed saying they intend to purchase one.

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The growing interest coupled with long equipment lead times means buying a used excavator is going to be a popular move this year, making it especially challenging to find quality used machines.

If you’re looking at buying a used excavator for sale, these five tips can help give you an edge on the search.

1. Finding a used excavator for sale
The three most common places to buy used equipment are from an equipment dealership, at an auction, or through a private seller. However, not all sellers offer the same experience or level of risk. Especially in a white-hot used equipment market, with high demand and low supply, buyers must be diligent in selecting a seller.

“My number one recommendation when looking for quality used machines is to eliminate any risk of the unknown,” Si Hanna, RDO General Manager of Remarketing advises. “It ultimately goes back to having trust in the seller and being able to get the full picture of the machine’s history.”

Buying a used excavator from an equipment dealer’s rental fleet comes with several advantages, one of the biggest being lowering risk. A reputable dealer will provide detailed service and maintenance records. Because the work has been done by skilled, certified service technicians, buyers can have peace of mind in knowing exactly what they’re getting into.

Related article: Looking to sell used equipment? Get tips to sell equipment at top value.

Additionally, a large inventory and potential for after-sale support are more good reasons to consider working with an equipment dealer. The opportunity to browse, thoroughly inspect, and buy equipment either online or on the lot offers an experience that meets varying preferences and further minimizes risk of the unknown.  

Auctions are another familiar source for used equipment seekers. They typically offer a large selection of machines, as well as different brands, all in one place. The biggest advantage of buying at auction is the opportunity to get a great price. It is important to keep an eye on pricing trends to keep this expectation in check.

For example, Ritchie Bros January Market Trends Report found that, in the last quarter of , excavator auction prices were up 15% year over year. Ritchie Bros. also saw a record number of bidders in which contributed to the higher prices and also increasing the amount of competition for the same machines.

The risk of buying at an auction means taking the machine as-is. There are a lot of unknowns that come with the machine. Especially when the used equipment market is hot, auctions typically don’t see as large an inventory of high-quality machines and prices tend to be high. And there is no after-sale support provided.   

The third option, private sellers, can be vetted by asking for recommendations and reading online reviews. Si says, when it comes to risk management and eliminating unknowns, buyers working with a private seller could find themselves on either end of the trust spectrum.

“If you know the seller and have a relationship with him or her, that trust factor is high,” he explains. “That person will give you the real deal on the machine and you’ll know exactly what you’re buying.” Conversely, the opposite could happen if there isn’t a relationship and the seller is simply looking to unload a money pit.

That is an important note to keep in mind with private sellers. Their ultimate goal is to do just that – sell. An excavator might not be a good purchase for a particular buyer but a private seller typically isn’t concerned about the end-user’s needs, financial situation, or long-term plans. And he or she cannot support after the sale.

2. Timing a used excavator search   
The agriculture industry has seasonal factors that affect the best time to buy used farm equipment. While the construction industry doesn’t follow this same pattern, timing is a factor to consider when buying a used excavator.

Because of their popularity, excavators move fast when they hit the used market. It used to be that a business owner or fleet manager was advised to plan a purchase 30, maybe 60 days in advance.

“Now, I recommend looking ahead 90 days and starting the search process that far in advance,” Si says.

The 90-day timeline is especially smart for buyers looking to purchase at auction because it also ties into how a lot of auctions are timed.

This proactive approach and timeline also puts a company in best position if working with an equipment dealership. An excavator may be on schedule to come back from a rental agreement or a trade-in might be expected, offering an opportunity to purchase the used excavator immediately upon availability.

3. Used excavator history and condition  
An important part of buying a quality used excavator boils down to determining the machine’s condition.

To begin the assessment process, ask the seller for a detailed account of the machine’s previous applications. For example, excavators that have been used for demolition work may have more wear and tear than one used for digging and little else.

Ask about environments of operation as well. A unique scenario might be excavators that have spent time in trenches, swampy areas, or other jobsites with standing water. If not properly cared for, water can do significant damage to a machine, sometimes damage that can’t be seen at first glance.

Further digging into a machine’s history, ask for service records, including detailed info like service work, oil scans, and parts that have been replaced or re-lifed.

Check all the pressures and make sure the speeds are set to factory specifications. An immediate red flag is a machine that can’t meet the factory specifications.

Machine hours is a final trait worth looking at. Machine values start to drop off significantly after 6,000 hours. Consider the long-term potential of the excavator in a fleet to determine the impact its hours has on the purchase.

4. Inspecting a used excavator and machine walkaround
Beyond what’s on paper and a first glance, give the excavator a good, thorough walkaround inspection. If this can’t be done in person, some sellers provide detailed walkaround videos and photos. 

With any walkaround, pay special attention to the excavator’s undercarriage. An undercarriage rebuild is expensive. While an excavator’s undercarriage may not be as big a risk as buying a machine that’s more mobile, like a dozer, it is worthwhile to inspect it.

Watch to find out why an undercarriage inspection is so important and what to look for when inspecting an undercarriage.

Another area to get up close with is the bucket, and stick pins and bushings. Examine to ensure there isn’t excessive wear.

5. Excavator automation technology and other considerations
The remaining areas to consider when looking for a used excavator go back to the add-ons that are of interest. 

Like the used excavator itself, excavator automation technology is popular and gaining momentum. Excavator automation systems make a significant impact on operator performance and overall productivity on the jobsite.

Related article: 5 FAQs covering the basics of excavator technology

An advantage to used excavators is many can be outfitted with auto-excavator systems. While integrated excavator technology systems like John Deere’s SmartGrade™ are a great new option, a company doesn’t need to buy a brand-new machine to reap the benefits of auto-excavator technology. Better yet, look for a used machine already equipped with excavator automation or machine control guidance technology.

For users who need to run more attachments, high-flow attachments, and run them for several hours, auxiliary hydraulics are a must-have.

According to Fortune Business Insights’ report, “Excavators Market, -” global excavator market size is expected to increase steadily until , with a 43% growth predicted from to . Expect used excavators to be tougher to find and come with a higher price tag for awhile. Those looking for one can follow these tips to be in best position to find and buy a quality used excavator for sale.

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