Magnum Equipment has been supplying secondhand machinery since its inception. We take a closer look at this side of the business.
If you take a look back through old issues of Deals on Wheels, it doesn’t take long to see that the lifting of import restrictions in the late 1980s had a profound effect on the used machinery market in New Zealand.
To put it in perspective, the number of secondhand cars imported grew from fewer than 3000 in 1985 to around 150,000 annually by 2004. One would expect the number of used machinery, although smaller in quantity, would have followed a similar trajectory.
A quick flick through the Deals on Wheels archive through the late 1990s and early 2000s shows a whole swag of used machinery importers, all pitching their wares to willing buyers.
As one would expect with a sunrise industry, the secondhand machinery market was rife with those of — shall we say — less-than-sterling credentials, and numerous tales still exist of naïve grassroots contractors buying machines with less than 2000 hours on the clock, only to find fairly quick that their ‘new’ used dozer had more like 10,000 hours of wear and tear on the final drives.
While such stories might sound a little far-fetched to those in the game in 2024, they were all too common back then and the opportunists who were importing machinery for a quick buck dropped by the wayside once people cottoned onto their shenanigans.
However, what did come out of all that gear into the country is a market that now has some of the best-priced secondhand machines in the world, and one of the businesses still working that pool is Magnum Equipment.
“Secondhand machinery is where we began our whole business,” says Magnum Equipment founder and director Liam Field.
“The used machinery was where (sister business) Magnum Hire came from and has led to our distributorships of Morooka and Hidromek new machines.”
Quality and reliability
According to Liam, selling used machinery is an important part of their supply chain, and it’s not uncommon for
a purchaser to upgrade to new equipment once the business becomes more sustainable.
“We’re very careful about the products we select to bring back to New Zealand, as they will be going into our stock for sale, or we will be using them in the Magnum Hire fleet, which, of course, needs equipment that is reliable and easy to use,” says Liam.
“We are also mindful that purchasers of our secondhand machines will eventually upgrade into something new, so we will work with customers, sometimes over years, to ensure the machinery we provide them is fit for purpose and help them through the buying process with finance recommendations if that is what they want.”
Gone also are the days when an operator is happy to sit in an open cab with a sun umbrella for shade. Liam says they ensure all the secondhand machinery they bring into the country meets modern standards, with air-conditioning and safety features aligned with construction site health and safety protocols. These considerations are paramount in Magnum Equipment’s buying cycle.
“The secondhand market is built on connections and often it is a case of who you know,” says Liam.
“I personally have been working in this market for many years and have built up a small selection of reputable businesses that I deal with. There are many other suppliers out there, but with some hard work, you eventually get a line into the companies that respect the machinery and understand that servicing and maintaining equipment correctly will allow it to be passed onto us for a fair value, which, in turn, allows us to offer it for sale at a fair price.”
Sourcing and servicing
Once a secondhand machine arrives in New Zealand, it’s fully checked over and serviced by Magnum Equipment’s in-house mechanical crew, prior to being made available for sale.
“We have a very conscientious service team, and they take a lot of pride in their work. One thing a buyer may notice is that we present the machine exteriors, especially around the buckets and track gear, as we receive them,” says Liam.
“As a rule, we don’t paint these areas, so a buyer can get a full understanding of how the machine has been used. We can arrange for these areas to be painted after it has been purchased, but I think it’s important to show a used machine like this and not hide anything under layers of paint.”
Sourcing machinery is also something Magnum Equipment carries out on a semi-regular basis and their long list of contacts helps ensure they can find any bucket-list item.
“While our list of regular suppliers that we’ve built up over the years is relatively short, we have a wider pool of suppliers we can choose from,” says Liam.
“When finding speciality machines, we’re selective about the machinery though and have a rigorous procedure to ensure a custom purchase is entirely fit for purpose while keeping the buyer across everything we’re doing for them.
“We’ve been doing this a heck of a long time and are one of not many who have a reputation for supplying quality equipment at prices that are fair. It’s the backbone of our business and I don’t think that will change anytime soon.”
For more information, contact Liam Field at 021 334 098 or Luke Field at 021 988 223 or visit magnumequipment.co.nz
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