The rent of machinery, an option in the face of inactivity and the financial disaster

In a previous post, we analyzed the case of a Mexican company that acquired an excavator through non-specialized machinery purchase platforms in the Asian market, and that resulted in a scam that is often called model replacement.

The model replacement scam usually occurs especially in the international market with unreliable and disreputable suppliers after the inspection, operation, and payment process for the machine has been carried out. It is then that the malicious seller replaces product identification numbers, external and internal visual components on a different and older machine to meet the documentation specifications.

In this case, the company that shared its data with Gotoyard had negotiated a 2010 Caterpillar brand 320D excavator on a popular Asian-based purchasing and sales platform, in which case it receives the following equipment after the import has been completed.

The costs of rehabilitation, maintenance, and documentation of the equipment resulted in losses for the company.

To reduce the total losses due to the acquisition of damaged equipment, the vehicle owner decides to rent his equipment once it has been completely repaired using specialized portals for the rental and sale of machinery.

After almost 16 months of inactivity of the equipment due to severe repairs and once it is fully functional, the excavator is put up for rent to the public using specialized marketing services to reduce the periods of inactivity, obtaining the following results over 12 months.

Keeping the equipment for rent will require an additional 2.5 months to cushion the losses caused by the previous repair. After this period, income may be considered as a possible profit.

The rental of machinery is a strategy to obtain income from equipment that is in idle periods or, as in this case, to recover apparent losses due to catastrophic scenarios without the need to sell the equipment.

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