How to Buy Bank Repo Heavy Equipment
Buying bank repo heavy equipment can often save a company a lot of money. A bank repossesses a piece of heavy machinery when the borrower fails to make the payments as agreed. The bank must then liquidate the equipment by selling it, often at a much lower price than what it is worth.
- Contact local banks to find out if any heavy equipment that you need is in their repossession inventory. Keep an eye on the newspaper as well, since many banks will list repossessed items for sale in the classified section. Once you find a piece of machinery that interests you, make an appointment with the bank’s repossession manger to take a look at the equipment.
- Meet with the repo manager and inspect the machinery. Take a mechanic with you if you want a professional opinion on the equipment's condition. If you decide the equipment is worth buying, make the repo manager a purchase offer.
- Negotiate the purchase price with the repo manager. Most banks list the asking price on repossessed property, so you should make an offer that is under that figure to start. If the bank needs to move the equipment fast, you may be able to get a good deal on the purchase.
- Ask the repo manager about financing for the heavy equipment you are buying. The manager will most likely refer you to a commercial loan officer to find out the current interest rate and loan term. Since you are buying a repo, the bank will usually offer you favorable terms for the purchase.
- Finalize the purchase and take possession of the equipment. If you run into any problems after using the equipment, contact the repo manager or the loan officer. You may be able to get a price break if a hidden problem occurs, especially if you finance the equipment through the same bank.