A bank calls and asks you to pick up a large piece of heavy equipment and your excited about the offer but there is only one thing, you are not experienced in heavy equipment at all. How do you give them a proper quotation on the job without costing you money out of pocket that you had no foreseen in advance. You might be able to come back to the bank later and bill them for additional costs that came up but usually a bank wants a solid quote prior to assigning the case.
Heavy equipment repossession is much different from car repo, yacht repo and aircraft repo. There are factors that equate to doing the job that a typical car repoman will simply not know. First off lets start by saying we are not talking about a small bobcat out in hill country. Lets talk about a crane in a metropolitan city such as New York and some of the things that need to be discussed in order to quote this job properly and accurately. I am specifically using crane because cranes getting repossessed in metropolitan cities is believe it or not a common occurrence. Constructions companies going bust, construction companies would rather allow the unit to be repossessed than pay to have it disassembled and all the other expenses involved. A job gets canceled mid stream as stakeholders pull out, basically a million things can go wrong and there you have it, a luxury item repossession company is getting called to do the dirty work.
Some of the costs involved in tower crane repossessions
- First off you must determine the size of the crane and its sizes once disassembled from there you can begin building an estimate that might work.
- Secondly you need to look at the location and the difficulty in disassembly
- Find a crew to disassemble it and figure out how many large pieces there are once disassembled
- Calculate the amount it will cost to load the trucks
- Calculate how many trucks are needed to transport the unit once broken down
- Cost of tractor trailers needed
- Contact the city and find out how much fines you will pay per truck by transporting(there will be fines imposed)
- Figure out where and cost of nearest storage that works for such a large unit
- Insurance costs involved that bank will make you secure
- The price of listing it with a heavy equipment auction or the cost of auctioneer going to unit in order to liquidate it
- Your fee which will basically be a project management fee more than a repossession fee
As you can see there is lots involved and these are just the basics, when doing large heavy equipment repossessions, there are always surprise fees that get added on along the way so when you do decide to take on some heavy equipment repos, proceed with caution so you don’t get caught in a money losing jam.