Five Red Flags When Buying a Used Container

Buying a used container can save you significant money compared to new.

But you can also end up with an expensive problem that turns into even more costly repairs.

Here are the five red flags that should make you walk away (or negotiate hard).

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🚩 Red Flag #1: The Seller Won't Let You Inspect Before Paying

Why It's a Problem:

If you can't see the container before transferring money, don't buy it.

Common Excuses to Ignore:

- "It's at another yard, but we'll bring it to you"

- "They're all the same, I'll send you photos"

- "If you pay today, I'll hold it for you"

The Reality:

Legitimate sellers always let you inspect. If they don't, it's because they know the container has problems.

What to Do:

Insist on seeing the specific container you're buying. If the seller refuses, find another one.

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🚩 Red Flag #2: Perforating Rust on Walls or Roof

How to Identify It:

- Surface rust: Orange color, scrapes off easily, no light passes through

- Perforating rust: ⚠️ You see light through the metal, there are holes, the metal is weak

Why It's Critical:

Perforating rust means:

1. Rain gets in (goodbye to your stuff)

2. Structure weakens (can collapse with load)

3. Repair is costly (significant expense depending on area)

Where to Check:

- Upper corners (water accumulates here)

- Roof (if there's bulging, there's rust underneath)

- Weld lines (water penetrates here first)

Light Test:

Enter the container, close the doors. See light coming in? Red flag.

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🚩 Red Flag #3: Floor with Rotten Boards or Holes

What to Look For:

- Boards sunken or soft when stepped on

- Large holes or cracks (more than 2 inches)

- Strong mold or persistent dampness smell

- Dark stains indicating water damage

Why It Matters:

The wood floor (marine plywood) is:

1. The most expensive to repair (considerable investment)

2. A sign there were chronic leaks

3. A structural problem if very damaged

What's Acceptable:

- Surface stains: OK

- 1-3 boards with light wear: OK, easy to repair (moderate expense)

- Small cracks (<1 inch): OK

What's NOT Acceptable:

- More than 30% of floor damaged

- Completely rotten boards

- Rusted metal structure under the floor

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🚩 Red Flag #4: Doors Don't Seal Properly or Have Structural Damage

Signs of Problems:

1. Doors don't close completely (gap of +½ inch)

2. Rubber gaskets are hard, broken, or missing

3. Hinges are bent or poorly welded

4. Handles/latches don't work

Why It's Critical:

If doors don't seal:

- Rain and moisture enter (mold problems, content damage)

- Compromised security (easy to force)

- Possible structural damage (container may have been impacted)

Repair Costs:

- New gaskets: Moderate expense

- Hinge adjustment: Moderate expense

- New doors: Very expensive!

Quick Test:

Close doors, put paper in edge, close. Can you easily pull the paper? Doors don't seal.

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🚩 Red Flag #5: Price is "Too Good to Be True"

Reference Context (Panama 2024):

Used containers generally have a market range based on size and condition. If someone offers significantly below market, ask: Why so cheap?

Legitimate Reasons for Lower Price:

1. Liquidation (seller urgently needs space)

2. Cosmetic damage (ugly paint, but structurally OK)

3. Volume purchase (negotiating 5+ containers)

NOT Legitimate Reasons (common scams):

1. Doesn't exist (they ask for deposit, disappear)

2. Severe hidden damage (rotten floor, perforated walls)

3. Stolen container (you'll have legal problems)

Protect Yourself:

- Never pay 100% before seeing the container

- Maximum deposit: 30-40% (and with official receipt)

- Visit the business physically (if they only operate via WhatsApp, be careful)

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Bonus: Seller Red Flag (not the container)

The Trustworthy Seller:

✅ Gives you their physical address (established business)

✅ Has RUC and issues invoices

✅ Lets you inspect without pressure

✅ Answers technical questions clearly

✅ Offers basic guarantee (at least 30 days)

The Suspicious Seller:

❌ Only operates via WhatsApp or social media

❌ Pressures you to pay "today"

❌ Has no yard/physical inventory

❌ Doesn't issue invoices ("cheaper without invoice")

❌ Disappears after the sale

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Summary: The 5 Red Flags

| Red Flag | Problem Level | Action |

|----------|---------------|--------|

| Won't let you inspect | 🔴 Critical | Walk away |

| Perforating rust | 🔴 Critical | Walk away or negotiate major discount |

| Very damaged floor | 🟡 Serious | Negotiate significant discount |

| Doors don't seal | 🟡 Serious | Negotiate discount |

| Price too low | 🔴 Potential scam | Investigate thoroughly |

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What to Do If You Find a Red Flag

Option 1: Walk Away

If they're critical problems (perforating rust, potential fraud), find another container.

Option 2: Negotiate

If they're repairable minor problems:

- Get 2-3 repair quotes

- Negotiate equivalent discount (repair cost + 20%)

Option 3: Request Repair Before Buying

Legitimate seller may repair before delivery (if margin allows).

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Have doubts about a specific container? Send us photos via WhatsApp. We'll tell you if it's a good buy or a red flag in 10 minutes.

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