Who Should Buy Used Tree Care Equipment, and Why?

Buying a brand-new chipper, aerial lift or compact loader is every tree-company owner’s first choice. But the used-equipment market has much to be said for it. The used market is still seeing a lot of interest, even as the pandemic-induced supply-chain shortages of parts and equipment is easing.


“In the last few years, due to COVID, the used market has gone crazy as far as what equipment sells. And it is selling at far higher than its value due to the fact that we can’t get new equipment,” says Wes White, sales manager for ESSCO Distributors, a 41-year TCIA corporate member company based in Bay Shore, on Long Island in New York.


White says 25% of ESSCO’s business is used-equipment sales. “Getting new equipment was impossible, and we’re still dealing with the ramifications of that,” he says.


Charlie Denallo, owner of CD Equipment Sales & Service, a first-year TCIA corporate member company based in Hinckley, Ohio, concurs. “Lead times on new equipment have been very long. With used equipment, it’s readily available and usually priced a whole lot cheaper – at a fraction of the cost.”
Denallo works with land-clearing operations, among other things, and finds those clients are mostly buying horizontal and electrical grinders, trommel screens, tub grinders, stackers and conveying systems.
Denallo adds, “Another reason some business owners like the older used equipment is that it’s a lot less electrical and has a lot fewer headaches to keep it up and running. Everything is just an electrical nightmare these days.”

A used green and yellow large equipment in a garage
A Precision Husky 5200 tub grinder in the shop at CD Equipment Sales & Service. “Lead times on new equipment have been very long. With used equipment, it’s readily available and usually priced a whole lot cheaper,” says Charlie Denallo. Photo courtesy of CD Equipment Sales & Service.


Auction option


Jeremy Walters works with J.J. Kane Auctions, a 15-year TCIA corporate member company based in Birmingham, Alabama. The company operates auctions nationwide and sells just about anything a tree care contractor uses, he says. This includes bucket trucks, chip-body trucks, chippers, stump grinders, cranes and pickup trucks, as well as other specialized equipment.


“There is an opportunity to save a substantial amount of money when buying at an auction versus through a new- or used-equipment dealer. You just really must do your homework,” says Walters.
“Also, in the tree care industry, many smaller contractors seem to be very mechanically inclined and often perform their own repairs,” he says of his typical customers – a combination of smaller tree care contractors and used-equipment dealers. “As they grow, many will add in-house technicians to their staff.”


Avoiding emissions


Another factor that figures in is Tier 4 emissions standards.


Diesel engines require all types of technology for lowering carbon emissions that involves filters and Blu DEF (diesel exhaust fluid) to clean the exhaust, says ESSCO’s Wes White. “It’s good for the environment, not good for the piece of equipment. If you have a problem, it’s very troublesome.” As a result, he notes, “The cost for new machinery has gone through the roof. From $20,000 three or four years ago, the same engine has doubled to $40,000.”


ESSCO sells primarily used chippers and stump grinders, as well as the trailers that go with them, and mini skid steers. According to White, 85% of their customers are arborists and 15% are state entities or golf courses. A buyer could be a landscape arborist doing either consumer or commercial work. ESSCO probably sells wood or brush chippers the most and stump grinders the least. “As they age, they (stump grinders) don’t have a great turnover, they just require too much service,” he says.


Buyer beware


We asked these equipment dealers the following series of questions.


What should buyers look for – or look out for – in general?


“Visual inspection will tell you a lot as to whether the customer has maintained the equipment. With a lot of used equipment, sellers often feel that a band-aid repair has gotten them through a lot of work, but what is that worth for the buyer? Equipment with a regular maintenance schedule will get a higher price,” says White.


“Most important is its condition – checking the engine oil, looking at the bearings, overall wear, signs that it was maintained. For any piece of commercial equipment, from a lawn mower to an excavator, get down on your knees and look underneath to see its condition,” White adds.


Also, buyers should ask the seller the equipment’s year, what it’s capable of doing, when its last maintenance was. “Used equipment is all over the place. Equipment is still running that is 30 years old, mostly because the seller doesn’t use it very much,” says White.


For equipment bought at auction, Jeremy Walters notes, “I would advise inspecting the equipment prior to the auction. Bring a mechanic along if you are not familiar or comfortable with evaluating equipment, especially for an aerial device. Also, be on the lookout for rust issues, especially in those areas of the country where road salt is used heavily. Chippers and upfitted trucks have many areas that tend to trap road salt, where it just sits all winter. Also, chips are corrosive, and bodies will rust prematurely if not emptied daily.”


Denallo’s punch list includes hours used, any big damage that had to be repaired and what material the owners were running. “The best advice is just travel and go get your eyes on the machine so you see it yourself.”


Buying from a dealer


Buying from a reputable dealer also is key in terms of knowledge, expertise, parts availability, service and warranties. “All those (are important). You hit it on the head, especially with the parts thing; parts are hard to come by,” says Denallo.


“Look for a dealer who has a good reputation and has actually refurbished the unit, versus just making superficial and cosmetic repairs,” says Walters.


White advises looking for a dealer who represents that product, has access to maintenance information and parts and will be able to service it.

A man welding a large piece of used equipment with sparks and bright lights.
g a new feed wheel for a horizontal grinder. Always ask what major repairs have been made to used equipment, advises Charlie Denallo. Photo courtesy of CD Equipment Sales & Service.


Who else can help?


Who is the used-equipment dealer’s best friend? The finance agency? A mechanic?
“We use both in-house mechanics and companies we work with for financing, but also good brokers for shipping. That means quick and good pricing when you need it,” says Denallo.


Denallo’s company sells used equipment all over the world, including the sale of a machine to a company in Turkey six months ago. That took a trip through the Houston, Texas, port and across the ocean by cargo ship. The company generally ships a lot of parts overseas due to the scarcity of parts and their huge expense there. “We try to help those customers out,” he says.


Best friend? “Definitely the mechanic,” says Walters. “You want to know what you are buying.”
“Definitely having a good relationship with your local dealer,” says White. “The buyers know they can rely on me, that I am going to help them get through a problem if one should arise.”


Why buy used?


Is there anything you typically ask a client in order to help them figure out what their best equipment option might be?


“I would discuss with the potential buyer repairs that may be necessary on a unit purchased through auction,” says Walters. “These would be revealed during a complete inspection prior to placing the unit in service. That is especially critical when an aerial device is involved. If they are not prepared for the potential cost and/or downtime involved (with repairs), they might want to consider a new machine or a used one from a dealer who has completely refurbished it.”


“It depends on if it’s going to stay in their yard, what kind of material they are going to be grinding, screening or moving and if they are going to be doing land clearing,” says Denallo. “If you are in a municipality doing land clearing or yard work, there are certain machines you want to stay away from, because they throw material. Identify the location and what they plan to use it for.


“Lately, on wood chippers, gas engines have come back big time because of all the problems with the DEF. If buying from one of the large chipper manufacturers, the average cost savings is $25,000 to $30,000. It’s a lot cheaper to clean up gas than diesel, which is a dirty-burning fuel,” says White.


What to look for


Are there specifics to look for in different types of equipment?


“Most of the issues we see with trucks and equipment going through auction are chassis related,” says Walters. “This is especially the case with the emissions equipment on 2010 and later diesel engines. These can be very costly to repair. With aerial devices, you want to look for leaks in hydraulic lines, cylinders, motors and other components, as well as wear in pins and bushings, boom damage (very common from chain saws) and the platform leveling system. Some older leveling systems require replacement at fixed intervals, at a substantial cost.”


“Is there a reputable dealer in your area, and what is the parts availability? A lot of companies are having trouble stocking parts and getting parts on time. That keeps you down longer than you want to be. A lot of customers will say, ‘If I’ve never heard the name before, I am going to stay away from it.’ If you don’t know who made that machine, don’t buy it,” says Denallo.


Denallo would know. He has a wide range of experience with different equipment. Denallo started off in the grinding industry, used to make mulch and topsoil, got into rebuilding equipment and then watched everything snowball. He did a ton of on-road service (still does). From there he tried to find suppliers for parts his company needed, and found out everyone else needed those as well. So he started selling parts, and then got into used equipment. “My background is in the grinding world. That’s all I’ve ever known,” he says.

A large yellow used chipper next to a green barn.
This 2016 Bandit 2590 chipper is listed in this month’s TCI Magazine “Classifieds,” courtesy of Edwards Land Clearing Inc., a 35-year TCIA member company based in Amherst, Ohio. Used equipment is readily available and usually priced a whole lot cheaper than new. But whether buying from an individual or through a dealer, buyers need to do their homework.


What to ask


What do you think a potential buyer should want to know about what they are buying?


“We disclose anything we notice while checking in the item, or anything the seller has disclosed. Most of what we sell comes from large fleets with excellent maintenance, repair and safety programs,” says Walters.


“With used equipment, make sure you know who you are getting your used equipment through. Operators think they are getting a good deal by finding the same machine for $20,000 cheaper. But a month or two into running it multiple things break and they end up putting another $60,000 into it,” says Denallo. “There are a lot of sketchy characters out there these days.”


The advantages of used


Why go to a used equipment dealer versus a private sale?


“Typically, we can offer more in-house parts, service and maybe even some warranties on the newer stuff, and then there’s the knowledge. When you do a private sale, the owner will sell you the machine and doesn’t want to hear from you anymore. This way, buyers can call us for parts or questions about repairs,” says Denallo.


“A dealer has usually gone through, inspected, evaluated and repaired the equipment prior to sale,” says Walters.


Of course, renting is also an option. “Renting is ideal when you may have a single project, after which you may not need the equipment for a while,” says Walters. “It’s nice to be able to turn it in, versus parking it and worrying about trying to find work for it. That also would apply for short-term seasonal work.”


Conclusion


It seems a big driver for buyers going with used equipment in recent years has been a lack of availability and long wait times for new equipment. But that seems to be easing.
“The supply line is getting better, so that time is easing up. If you say 100 weeks, the customer is going to walk out the door. If it’s 40 weeks, that is more appealing, and the customer can plan for the next season,” says White.
When new equipment becomes more readily available, equipment owners may look to replace used equipment they have been hanging on to the last few years. That may mean more used equipment could become available for those looking to start or expand a tree care business, or those just hoping to upgrade their own, older equipment.

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