How do I assess a scrap yard’s loaders, shears and balers before buying?
Ask for each machine’s hours, service history and major repairs, then watch it work under load. Listen, look for leaks and cracks, and compare output with what the seller claims. Have a heavy-equipment mechanic inspect the key machines, because wear in this trade is expensive and hard to see.
Make a list of every machine with age, hours and the job it does. Ask which ones the yard cannot operate without. A shear or baler that is the bottleneck matters more than a spare loader. For each, request invoices for repairs, replaced blades, hydraulic work and downtime. Many stops and starts in the records point to a machine that is near the end.
Then watch them work, not idle. Look for hydraulic leaks, cracked welds, worn pins, uneven blade wear and smoke. Ask the operator what annoys them, because they usually know. Check that guards and safety devices are in place and working, and ask about near misses and injuries.
Ask what a replacement or major rebuild would cost and how long the yard would be down. Get a dealer’s view on whether parts are still available for older models. An appraiser or lender can help set a realistic value. Operators matter too: if a skilled person leaves with the owner, the machine may not earn what it did. Finally, ask who maintains the machines. In-house mechanics who leave with the owner, or a dealer who knows the fleet, change how well you can keep it running. Budget realistically for the first season rather than assuming the equipment will hold.
Key takeaways
- List every machine with hours, repair history and the job it does.
- Watch each one under load, and talk to the operator.
- Ask a mechanic or dealer to inspect the machines that matter most.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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