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Home>>news>>The Business of Used Excavator - China VS Japan

The Business of Used Excavator - China VS Japan

Tags: competitive used excavator used komatsu excavators for sale2013-12-17

With the rapid development of domestic engineering machinery in recent years, more and more people began to look forward to a China's construction machinery era, and it is coming, but before that, we cannot ignore a strong competitor, our neighbor, Japan. As one of the most developed countries in the construction machinery industry of the world, Japan has always been an industry benchmark, as well as in the business of used excavator. By contrast, maybe we can find our deficiencies.

Japan: Development of Used Excavator Business
The market of used excavator in Japan is very developed which has formed a stable used excavator sources, including eliminated products from leasing company and sold excavator after completing construction from engineering company. These devices often used 5000 hours only, and still maintained a good performance.  Komatsu, Japan's largest construction machinery manufacturers, for example, their used excavator business works very well. They set up a business department of used Komatsu excavators specially to purchase the used ones, and the company will give a rapid response according to the market and customer's demand. They have professional valuers for used excavator; they own factories to renew them, to extend its work time; they provide the best after-sale service to maintain the quality. In Japan, in addition, there is a very perfect used auction system. In Komatsu auction, with the guarantee of brand reputation, the quality of the corresponding service commitments, and a clear and safe auction process, generally, every single minute will compete a machine equipment auction on average.

China: Development of Used Excavator Business
China's business of used excavator is still mainly relying on agents. There are many problems in the process of its operation. First of all, we are lack of sound legislation and regulations to standardize our domestic market for used excavator. As we can see, the circulation of used excavator is in a embarrassing situation of dividing management and another manages for a long time. Different government departments have different management actions which made things complicated. Secondly, different transaction tax standard also restricts the development of the used excavator market. The transaction tax of second-hand equipment is usually decided by the local government, according to the added-value tax or business tax, ranging from the lowest 2%to the highest 17%, which differs greatly. Thirdly, the evaluation system of used excavator is imperfect. There isn't a unified second-hand engineering machinery value evaluation standard and equipment residual value evaluation standard, thus all the things are decided by the agents unscientifically and casually.

Above all, there are a lot of problems in used excavator of the construction machinery in our China; the gap with Japan is also very big. But as long as we can find the crux, we will finally catch up through effective measures. Let's meet a better China!

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