If you have a long term need for equipment, here are some cost-reducing methods to consider:
1) If equipment is listed with a vendor, offer 20% below asking or more as a starting point for negotiations. Many vendors pay monthly costs on their inventory and will negotiate a lower price to avoid a large bill the following month.
2) Look for auctions in your area. Make sure you get approved before attending the auction so that you can maintain buying power. The closer the auction is to you, the less time you will likely wait to get the equipment installed.
3) If the equipment is a truck or titled piece, and coming from a private individual or company, get the front and back of the title before negotiating the price. If the seller isn’t willing to provide the title, they will be difficult to work with and likely won’t be motivated to make a sale.
4) Used, non-titled equipment from private sellers requires lien searches. Liens are the legal rights of a creditor over another’s property. If you plan on buying that property, you must conduct a lien search to ensure that the asset you are buying doesn’t stay under the previous creditor. You don’t want the IRS or a bank to repossess your equipment if the liens weren’t properly released. (ACG takes this step for all our clients and works out the details with the seller to protect our clients.)