Don’t Buy Stolen Construction Equipment

Only a few states in the United States officially recognize titles for heavy equipment. In most states, these documents function more like bills of sale. This often prompts the question, “Why isn’t there a national equipment database similar to what we have for vehicles? Such a database could facilitate the recovery of stolen machinery and simplify the process of verifying the legal ownership of equipment.”

Cost of Equipment Theft: Construction equipment theft costs the industry between $300 million and $1 billion annually in the United States alone. (Source: National Equipment Register)

Keep Your Construction Equipment Safe

Did you ever think the construction equipment you’re buying could be stolen? It’s very unfortunate that in today’s world there are people out there who are so desperate that they’ll do anything to get some cash in their pocket. With rising prices and the recent news of increased tariffs, we wouldn’t expect these numbers for 2025 to slow down. Yes, this includes stealing heavy equipment like excavators, skid steers, and backhoes. All it takes is a desperate thief to enter your property or job site during the late hours of the night, pull up their truck, and within minutes they could be gone with tens of thousands of dollars. If your equipment is kept on a flatbed trailer, all they need to do is hitch up and ditch out.

Most Targeted Equipment: Heavy equipment such as backhoe loaders, skid steer loaders, and excavators are among the most frequently stolen items due to their high value and portability. (Source: National Insurance Crime Bureau)

Construction Equipment Theft is on the Rise!

Our economy has been improving and with a better economy comes more construction. Construction business has been increasing and especially during the summer months when the weather is ideal. After time passes, some of these stolen goods will pop up on the market. Some thieves wait for things to cool down, and may decide to hold on to the stolen property and look to unload it on an unsuspecting buyer months later.

Impact on Business: Equipment theft can significantly impact construction businesses, causing project delays, increased insurance premiums, and additional expenses for replacement or repair. (Source: GoCodes Tool Tracking Software)

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7 Questions to Ask When Buying Used Equipment

Before buying used equipment, you’ll want to have your security measures in place. The safest way to buy used equipment is buying from a reputable dealer or vendor versus a private party seller. Dealers and vendors are held to a higher standard when reselling used equipment, and they perform their own due diligence before they buy or take in equipment as a trade. This doesn’t mean you should not do your own research and due diligence, but it does add an extra layer of security.  If you decide on buying from a private party seller, you will always want to speak to the seller and have a few detailed questions before making any time or financial commitment to the seller. If you ever purchased a used vehicle before, the questions you’ll want to ask are very similar. However, unlike used vehicles, almost all construction equipment like front loaders or skid steers will not have a title. So,  proving ownership can be a little more challenging. Here are some questions you can ask the seller

1. How long have they owned this equipment?
2. Where did they purchase this equipment and if they paid cash, or was it financed? If it was financed, you should also ask for proof the equipment has been paid off. This can be obtained from the finance company.
3. If they bought the equipment from a dealer, ask them if they have the paid invoice and/or the information on the dealer so you can do your due diligence and confirm the transaction with the dealer.
4. If they purchased this from a private party seller, ask if they have the seller’s contact info so you can do your due diligence later. Private party transactions can be tricky to verify if the sale was a legitimate transaction, so tread carefully.
5. Ask about the condition of the equipment, if it has damages and if it’s in good working order.
6. You should also ask if there is still a warranty on the equipment and if they hold the original paperwork on the warranty.
7. Question the seller why they are selling. This question might open the conversation and lead to other helpful information that’ll help you make the decision if you want to take the next step and proceed to inspect it.

Don’t be a Victim to Buying Stolen Construction Equipment

As a finance company, we take extra precaution when financing used equipment that holds no titles. In our industry, we refer to this type of equipment as, “non-titled equipment.” As you may already know, most construction equipment like excavators, bulldozers, and skid steers do not have titles. When dealing with used equipment that don’t hold titles, proof of ownership can be tough and time consuming. However, we do have ways that we can check to see if the seller is the true genuine and rightful owner. Whenever we finance used equipment that is non-titled, we require the seller to provide proof of ownership. This can be done several ways:

1. Proof of original purchase documents. If the seller purchased from a dealer, this would consist of the paid invoice and a copy of the payment the seller made to the dealer. If the seller paid with a cashier’s check, wire or personal check, they will also be able to get this proof from their bank. If they paid cash, then this will make things difficult, but not impossible. Sometimes sellers might not keep the best records, but if they recall the dealer who they purchased the equipment from, you can contact them and see if they have the copies of the client’s payment.
2. If the seller had to obtain financing to purchase the equipment, and they recently paid it off, the seller will need to provide the payoff letter from the finance company. This shows the equipment is paid for and there is no balance due. It will possibly include a UCC lien release, as some lenders will file a UCC lien against the equipment financed.
3. If the equipment is older, there’s a good chance the seller may not have those documents and there’s a good chance the dealer or finance company is no longer in business. Don’t worry, they still have other options, such as tax returns & insurance policies.
4. If the seller can provide an older insurance policy or a previous year tax return with the Depreciation Schedule that shows their equipment, year, make, model and serial number this will at times also satisfy the underwriter. Most thieves wouldn’t insure a stolen piece of equipment, nor would they depreciate it and list it on their tax returns, right?

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How to Prevent Equipment Theft

1. If you have finally decided to pull the trigger and purchase a used piece of equipment, you’ll want to protect your investment. Here are some tips on what you can implement to prevent the theft.
2. Install a GPS tracking device. There are several units on the market that operate on batteries and/or ones that need power by the battery on the unit. Some are very simple to install, while others are more advanced and may require an installer. Even a simple Apple AirTag or something similar would be a cheaper alternative, though this won’t necessarily prevent theft, but it will offer a great solution to tracking down your equipment if it was stolen. Here’s a recent story of a recovery Timberking Sawmill that was recently stolen from a property, and was found because there was an Apple AirTag hidden on the equipment.
3. Install security cameras and motion detector lights on your property or job site where your equipment is stored when not in use. Security cameras are very affordable as of late and the installation process is very simple. They can be as little as $35 for a single camera and upwards up to several thousand which would have multiple cameras and can record and store the footage. 
4. Install a kill switch to the power supply or the fuel pump. If your equipment requires a battery or fuel, you or any mechanic can install a hidden kill switch. If the thief needs to turn on the equipment to move it on a trailer, they won’t be able to do so if they can’t turn it on. So, having a hidden switch you would need to turn on before using the key can help prevent this form of theft.

Was Your Construction Equipment Stolen?

Did someone steal your construction equipment? Unfortunately, construction equipment theft happens more often than you might think. Construction sites are frequently targets for thieves due to poor site security and unauthorized access. Commonly stolen items include rented equipment and machinery that are easily transported. As a result, construction companies must be vigilant in implementing theft prevention measures.

To deter thieves from attempting theft and unauthorized access, ensure that your construction site is well-lit and equipped with a robust security system. Regularly monitoring the site and maintaining detailed records can also help increase the chances of recovering stolen items. If equipment is stolen, promptly alert your insurance company to minimize financial losses. By taking proactive steps, you can take to safeguard your assets, you can significantly improve your recovery rates and deter future thefts.

Contact First Capital for Questions on Construction Equipment Financing

Hopefully, we could shed some light on what to expect from a finance company like us if you’re buying a used piece of construction equipment that holds no title. If you are still uncertain and would like to learn more, feel free to give us a call at [phone] and one of our advisors will be happy to walk you through the process. Any of our advisors can prequalify you for financing on a 5-minute call. We have financing programs for both startup businesses and existing businesses, even if you have challenging credit, we have programs for everyone! Call 888-565-6692 and speak to one of our advisors today!

Here are just a few types of equipment we finance. If you don’t see the type of equipment you need, I am 99% sure we can finance it!

• Backhoe Loader
• Scissor Lift – Boom Lift – Articulated Lift
• Mini Excavator
• Forklift
• Front Loader/Wheel Loader

Don’t Buy Stolen Construction Equipment | First Capital Business Finance