Purchasing a used excavator is a process that involves multiple considerations. Below are detailed steps and important factors to keep in mind:

Choosing the Right Purchase Channel:

• Local Second-Hand Markets: Opting for a local market allows for better assessment of the machine's condition and after-sales service while reducing transportation costs.
• Large Certified Second-Hand Markets: Ensure the market has a good reputation and complete documentation, and choose a used excavator with reliable performance and configuration.
• Online Platforms: Platforms such as Youpin Paipai, Tiejia Ershouji, Yunlian Ershouji, Yiji, Xianyu, Taobao, Zhuanzhuan, and Paipai provide official guarantees, but it's important to distinguish between C2C transactions and stores backed by major dealers.

Inspecting the Machine’s Condition:

• Engine: Check for oil leaks, inspect the radiator for dust buildup, and ensure the fan's extension position is normal.
• Boom, Arm, Bucket, and Cylinder Stamps: Verify that the stamped information on the parts is consistent to determine if they are original.
• Control Valve: Look for oil leakage marks; paint coverage may hide potential issues.
• Undercarriage: Examine track wear, check whether track bolts are domestic or imported, and ensure the travel motors operate at consistent speeds.
• Chassis: Look for signs of realignment, especially in cases of accidents or rollovers.

Valuation Methods:

• Age and Brand: Depreciation is typically calculated based on the machine’s purchase year and brand, with a general depreciation rate of 20-30% within three years and 30-40% over 4-5 years.
• Performance and Configuration: Different configurations affect pricing.
• Operating Hours: Evaluate the machine’s usage level and remaining value based on working hours.

Test Drive and Trial Operation:

• Before purchasing, conduct a test drive to check operational performance, observe engine operation, assess travel stability, evaluate the hydraulic system, and inspect the fuel tank condition.

Key Transaction Details:

• Ensure the machine is free of financial disputes.
• Choose an excavator from a more recent year, as it is likely to have less wear.
• Verify that the payment method and amount align with the agreed terms in the contract.
• Confirm that all machine documents are complete to avoid legal risks.

Common Pitfalls to Avoid:

• Do not blindly pursue the lowest price, as it may lead to scams.
• Avoid focusing solely on price—consider the overall condition, performance, and cost-effectiveness.

By following these steps and precautions, you can make a more informed decision when purchasing a used excavator, ensuring that the equipment meets your needs while minimizing transaction risks.

Many friends have asked me a question: What is the price difference between SANY excavators and CAT in the U.S. market?

I fully understand this question because the essence of this inquiry is to determine the market position and brand image of companies like SANY and XCMG (XCMG has made significant progress in the U.S. market in recent years, particularly in the loader segment, where it has gained substantial recognition from American customers).

For Chinese construction machinery companies going global, the U.S. market is the most important market, offering the highest potential shareholder returns. This article attempts to analyze this question from a personal perspective. Due to my limitations, my conclusions may be incorrect, and I welcome readers to provide corrections.

To answer this question, I consulted three professionals in the U.S. construction machinery industry—two in California and one in New Jersey. The responses were as follows:

1. In California, SANY excavators are priced similarly to Komatsu excavators, with a 10% price difference compared to CAT.
2. In New Jersey, SANY excavators are even more expensive than Komatsu, with an 8% price difference compared to CAT.

These figures are approximate; actual differences vary based on region and machine model.

Additionally, after reviewing some equipment usage VLOGs from U.S. construction machinery customers, the price differences mentioned fall within this range. XCMG's products are priced slightly lower—for example, loaders have a 15%-20% price difference compared to CAT.

But does this mean that SANY and XCMG have already surpassed Komatsu in brand image in the U.S. and are closing in on CAT? No, that is not the real answer. Below, I will break down the real factors behind market pricing from two key perspectives.

1.Nominal Price vs. Residual Value

For any durable consumer or capital good, residual value is a key consideration for buyers. In simple terms, residual value affects the total cost of ownership over the equipment’s lifecycle. However, after interviewing many construction machinery users in both China and overseas, I found that this perspective is not entirely accurate.

Construction machinery users are not financial accountants meticulously calculating returns. In reality, hidden costs exist during operations, and most buyers do not explicitly calculate total lifecycle costs. Instead, residual value is crucial because it helps manage customer expectations.

One reason people buy Apple smartphones is that they retain value well. Similarly, Toyota cars are popular partly because of their strong resale value. However, customers generally have only a vague sense of this value rather than precise calculations. This is a form of expectation management rather than a numerical evaluation.

Expectation management must ultimately be self-fulfilling to be effective. So, what is the most significant factor influencing expected residual values?

The nominal price of new machines.

The pricing structure of Apple products—$699, $799, $899—ensures stability, while the budget-friendly iPhone C series was quickly abandoned by the company. A recent example from the automotive industry: BMW chose to raise prices despite losing market share.

The same logic applies to construction machinery:

• CAT holds only about 5% of the new excavator market share, yet in the used market, it dominates. My grassroots research suggests that in some markets, CAT’s used excavator market share exceeds 30%.
• Liebherr sells only a few cranes in China each year, but its used cranes still command high prices.
• An extreme case: the now-defunct Putzmeister concrete pump brand. Despite no longer being sold in China, a second-hand pump dealer told me that he struggles to find inventory because refurbished Putzmeister pumps sell so well—even models from over a decade ago.

This underscores the unique appeal of the used equipment market. Brands that maintain a significant gap between new and used equipment prices preserve strong residual value.

Thus, maintaining high nominal prices is crucial—it reinforces consumer expectations. This is why Chinese manufacturers entering the U.S. market must sustain a high nominal price. This is a strategic decision rather than a reflection of actual market position. Whether selling 50 or 5,000 units, the pricing structure remains the same.

2.Mechanisms Behind Real Prices

In reality, the actual price of Chinese brands in the U.S. market varies by around 30% due to three primary factors:

1. Interest Rates
   During the financing stage, interest-free or low-interest leasing can offset new machine costs. However, this is difficult to quantify since rates fluctuate based on region, time, and model. CAT also offers zero-interest financing for certain models for up to three years. Thus, the net difference here is roughly zero.

2. Warranty
   CAT and Komatsu offer a 2-year warranty in the U.S., whereas SANY and XCMG provide 5-6 years.
   This translates to an approximate price difference: CAT can offer a 5-year warranty, but at an additional cost. Customers can opt for CAT's Extended Protection Plan (EPP), with tiered pricing:

   • 3 years: 3.5%
   • 4 years: 4.5%
   • 5-6 years: around 9%

   This results in an 8% price gap.

3. Configuration
   CAT machines in the U.S. often require additional paid options. For example:

   • Buckets are sold separately.
   • Rollover Protective Structure (ROPS) and quick coupler auxiliary valves must be purchased separately.

   Meanwhile, Chinese brands sell fully loaded models as standard.
   This creates a price gap of roughly 10-15%.

4. Final Price Difference
5. New machine price difference: 8-10%
6. Warranty difference: 8%
7. Configuration difference: 10-15%

This means that the actual price gap between Chinese brands and CAT in the U.S. market is around 30%.

Although these figures are estimates, I am confident in the conclusion. When Komatsu first entered the U.S. market, its pricing was approximately 70% of CAT’s—similar to the positioning of Chinese brands today.

3.Final Conclusions

Returning to the original question, the price gap itself is not important. What matters is: where do Chinese brands stand in the U.S. construction machinery market?

Based on Komatsu’s trajectory, once a brand gains widespread recognition in the U.S., growth can be rapid. In the 1980s, Komatsu’s market share in the U.S. jumped from single digits to nearly 30% within just three years.

Thus, the key is identifying the inflection point for market breakout. This can be assessed through:

• New machine pricing
• Warranty period
• Configuration

New machine prices will likely remain stable. CAT’s 10% premium is due to brand equity, not quality or reliability. CAT is the global leader in construction machinery, with deep emotional ties to American customers. This price gap will persist.

Configuration is also unlikely to change, as it ties into brand positioning and customer expectations.

The most probable adjustment is in warranty duration.

In the electric vehicle industry, NIO initially offered free battery swapping but later introduced fees—while maintaining premium configurations.

Thus, the key indicators to watch are:

1. Nominal prices will remain high to maintain customer expectations.
2. Chinese brands are still in the early stages of market penetration.
3. If warranty periods shrink from 5 to 4 years, it signals strong progress; a drop to 2 years would indicate true mainstream acceptance.

This is my analysis and response to the question many have asked.

I dropped out of high school in my first year. It was a private school in my hometown, and those who know, know—the learning environment was terrible. Instead of staying, I decided to help ease my family's financial burden. My family suggested I learn to operate an excavator, so I went for it. I went to the site with my father, who works as a formwork carpenter—a tough job. My brother found me a mentor… but I had to wait nearly a month and a half. During that time, I was frustrated and bored.

The first mentor I followed was part of a group of three excavator operators. One of them already had an apprentice, and another was the cousin of the other two. I ended up learning from the one closest to my age—he was kind and easygoing. Learning from him felt stress-free and relaxed. Of course, at first, I wasn’t allowed to touch the excavator. I just watched for over ten days until he finally let me operate it and taught me some basic movements. But then… nothing. He never let me touch it again or taught me further.

Do you know why? Because his cousin wouldn’t allow it. Since I was staying at their house and sleeping on the sofa (which was too short for me, so I had to use a stool), I didn’t pay him anything. And since the excavators were his, I wasn’t given a chance to practice. Eventually, I stopped going. Even when I showed up occasionally, he made excuses and told my mentor not to let me operate the machine—thinking I was too young to understand what was really going on. So, I left.

Then came my second mentor—the one I’m currently learning from. The first time I saw him, I felt uneasy. He seemed kind on the surface, but his eyes were full of calculation and deceit. When I arrived at the site, he let me try operating the excavator, asking me to maneuver it out of a ditch. The machine was positioned sideways at the top of the ditch, and I had barely practiced moving it before. Naturally, I struggled. His response?

“Get down, get down. What were you even doing for the past month? You still don’t know this?”

I wanted to explain my situation, but I realized there was no point, so I kept quiet. From then on, he barely let me operate the excavator or taught me anything.

After about a week, he finally taught me properly, and I took it seriously. But soon enough, he returned to his old ways, making sarcastic remarks: “At this rate, you won’t learn this even by next year,” or “Your control is way off,” and so on.

We’re actually related—distant relatives. But in times like these, relatives only seem to exist to take advantage of you.

The work he takes on is the kind that nobody else wants—mainly electrical work. It makes sense that I wouldn’t be allowed to operate in those situations, but the way he talks down to me makes me resent him even more. Even in easy situations where I could practice, he refuses to let me. And if he does, he kicks me off the machine after a few minutes. Infuriating.

After this happened several times, I lost interest in engaging with him. Instead, he started making me help him with manual labor. I accepted it—after all, that’s what apprentices are expected to do.

But after two months, I was reaching my breaking point. I told my family, but no one sympathized. “That’s just how apprenticeships work,” they said.

Every time I got on the machine, I’d be taken off almost immediately—less than ten times in a month and a half. And if that weren’t bad enough, he made me wake up earlier than him every day, only for me to end up waiting for him. Then he’d turn around and say, “Next time, come earlier. Don’t be late.”

And if I was late, he’d scold me even more harshly. If not for the fact that my parents know him (we’re from the same village, even neighbors, and my family has often lent him money), I would have put him in the hospital by now. If the law didn’t exist, he’d probably be six feet under.

It’s been two months, and I’ve barely accumulated half an hour of practice. And to top it all off, he only lets me watch—not even teach me.

Finding a good mentor is so important.

What I’m about to discuss is something industry insiders should already be aware of. Perhaps you know everything I’m going to say, or maybe just parts of it.

I’m also using this article as a way to establish my presence and exchange thoughts with fellow professionals.

Initially, I wanted to engage in the export of engines. For decades, I have aspired to work in the industrial products sector, but my mindset was always confined to the employee mentality. Whenever I thought about changing careers, my first instinct was to apply for jobs at other companies. Given that my educational background is unrelated, transitioning was extremely difficult.

After the subsidiary I was managing shut down in 2022, I completely abandoned the idea of being an employee.

I then started researching YouTube, studying its algorithms and effectiveness. I experimented with re-uploading other people’s videos, got banned, experienced copyright issues firsthand, and finally learned how to appeal and defend my rights. I also started from scratch in video production and developed my own style. Eventually, I experienced the thrill of having a single video reach 5 million views. However, it took me two years of tinkering before I truly began my YouTube journey.

The struggles along the way are too many to list.

How I Got Into the Excavator Business

After entering the excavator industry, I realized that very few people in Shanghai are in this business. The network I joined is primarily based in Hefei. Shanghai’s Songjiang district used to have a large market, but due to various regulatory restrictions, businesses moved their excavators to Hefei—which is where I am now.

This market doesn’t have an official name, but industry insiders all know about it. Marketing strategies are useless here, so nobody cares about fancy promotions. If I had to describe it with a single keyword, I’d say: "Sishu Bridge".

So, let’s call it the "Sishu Bridge Market".

When everyone was making insane amounts of money in this industry, I wasn’t part of it yet. I entered late, so all I can do is listen to the veterans reminisce about the days when they literally counted cash until their hands cramped.

Why I Chose This Industry

I am fully aware of the current state of the construction industry, but I still chose to enter the excavator business for my own reasons:

It should be a traditional, low-end industry that won't face regulatory wipeouts. Finance, healthcare, and elderly care are not options. High-tech? You need the skills to compete.
It should have high-value products, so customers don’t drive you crazy. Small retail items on Taobao won’t work.
It should involve standardized products, so customization isn’t necessary. Customization is hard labor that shortens your lifespan. Graphic design, programming, and web development all fall into this category.
It shouldn’t be heavily reliant on connections, where a few people monopolize the entire business, leaving no room for newcomers. Industries like food additives, mining, and exclusive import distribution are impossible to enter unless you got in 20 years ago.
I am just an ordinary farmer’s son from Shanghai, like many university graduates across the country—having some knowledge but no resources. At 30, I accepted reality, and at 40, I’m still searching for my path.

My Initial Experiments: Nail Art & Engines

I first experimented with nail art and engine exports.

Due to time constraints, I started with engines. But after testing the waters, I found that engine prices were too low. Often, the shipping costs for a single export order exceeded the value of the engines themselves. Unless dealing with bulk orders, it was simply unfeasible.

Ultimately, I felt that excavators were a better choice. Of course, there may be even better industries or products, but with my limited vision and no mentor, this is as far as I can see.

The Current State of Excavator Sales

In China, Douyin, Kuaishou, and WeChat Moments have been the main marketing platforms for excavator sales. These were effective in previous years, but now everyone is competing fiercely, and the market is oversaturated. Posting more videos doesn’t help anymore.

So, the more technically skilled sellers started moving to TikTok. Since last year, Chinese excavator exports have been increasing, with sellers not only targeting TikTok’s international audience but also shipping machines directly to Southeast Asia and Central Asia.

If you want to see how competitive the industry has become, just search for excavators on Alibaba’s English site. Every company labels their products with:

• "Hot Sale"
• "Low Price"
• "Good Performance"
• "Low Cost"
• "High Quality"
  It’s all the same.

Government Crackdowns on Second-Hand Excavators

At one point, I wondered why used XCMG excavators weren’t being sold on Alibaba. Then I learned that XCMG doesn’t allow it.

In February, a group of government inspectors suddenly arrived at the market, checking every excavator. Anyone selling SANY machines got heavily fined—with some sellers losing 50,000 RMB per machine.

The reason? SANY was cracking down on counterfeits.

At a macro level, China’s shrinking construction industry has hurt SANY’s sales. At a micro level, the second-hand market was hurting their new machine sales.

Why Government Crackdowns Are Actually Good for Us

Luckily, my focus was never on the domestic market. These crackdowns don’t affect me at all.

In fact, the more they crack down, the happier I am:

• If no one dares to sell SANY in China, machine owners will be forced to sell them cheaply.
• This lowers international prices, allowing us to sell even more second-hand SANY machines overseas.
• Eventually, even SANY’s new machines will be impacted internationally due to the flood of cheap second-hand models.

I just want to ask SANY’s executives: Are you guys stupid?

• No matter how many fines you issue, you won’t increase domestic sales.
• You can’t block international sales.
• In the end, you’re only hurting your own brand.

Going Global: How to Compete

Since the domestic market is too restrictive, let’s compete internationally!

1. Tools
   Cheap VPNs or proxy tools will get your accounts banned. Ideally, you should set up a dedicated overseas server or a proper foreign network connection.

2. Platforms

   • Facebook is full of scammers, resellers, and Chinese sellers. Finding real customers there is hard.

   • TikTok is a must, but registering is difficult for Chinese users. You need:

     • A non-Chinese phone and SIM card
     • GPS turned off
     • The right internet setup
3. SEO & Websites
   SEO is a scam now. I have 20 years of SEO experience, and I can tell you it’s a waste of money. Instead of investing in SEO, you might as well donate to me!

Final Thoughts

After testing 20+ industries, I can confidently say:

Compared to my past industries, the excavator business is absolutely fantastic!

The primary function of the engine lubrication system is to prevent friction between parts that have relative motion.

The circulation process of engine oil in the lubrication system involves the gear-type oil pump drawing oil from the oil pan, which then flows through the oil cooler and filter. After that, it goes into the left and right camshaft oil channels and the main oil channel, supplying oil to various parts such as the turbocharger, crankshaft, piston, and cooling nozzles. After completing its task, the oil naturally flows back to the oil pan due to gravity, starting the next cycle.

Engine Oil Grade

Caterpillar recognizes the oil certification and licensing system of the American Petroleum Institute (API). When multiple API grades are available, the higher grade should be selected.

Caterpillar Engine Oil (Cat DEO)

Caterpillar engine oil exceeds the performance requirements of many other diesel engine manufacturers. Therefore, this oil is an excellent choice for engines.

Engine Oil Level Check

The oil level checked when the engine is off is more accurate. When checking, ensure the engine is placed on a level surface.

Oil Filter Replacement

Replace the oil filter every time you change the oil, or when the oil filter pressure differential reaches 103 kPa. Note: Do not attempt to clean and reuse the oil filter.

Draining Engine Oil

Before changing the oil, old oil should be drained first. Be sure not to drain the oil when the engine is cold, as waste particles in the oil settle at the bottom of the oil pan. These waste particles may not be drained along with the cold oil. It's better to drain the oil when it is still warm after the engine has been running, which helps remove the waste particles suspended in the oil.

Inspecting Old Oil Filters

Cut off the end caps of the oil filter on both sides. Unfold the pleated paper and check for metal shavings. A large amount of metal shavings in the filter may indicate early wear or an impending failure. Use a magnet to separate any ferrous metals from non-ferrous metals found in the oil filter.

Adding Engine Oil

Remove the oil filler cap. Engine oil should only be added to the crankcase through the oil filler tube.

Crankcase Breather

The crankcase breather is a simple ventilation device located above certain valve covers and connected to the outside of the generator room via a breather pipe, ensuring it is vented to the atmosphere. Keep the crankcase breather and the breather pipe clear of blockages and free of accumulated oil.