Posted on: 11 September 2015
If you're in the market for a new piece of heavy equipment, maybe a front loader or a back hoe, you may be wondering whether you should invest in a shiny, new model or buy a piece of equipment that's been previously used by another company. While both options have their advantages, there are some distinct benefits to choosing used over new.
1. Less capital outlay. The best advantage to buying used equipment rather than new is that the price tag is considerably less. This allows you to use your company funds for other projects or purchases. In addition, if you plan on financing the equipment, you'll generally pay less interest on a used piece of equipment than on a new model.
2. Less depreciation. Like your personal vehicle, a used piece of equipment has less first-year depreciation than a new piece of equipment. New equipment loses value the instant you remove it from the sales lot. If you're planning on selling or upgrading your equipment in a few years, not holding it for its entire lifespan, this could be a major consideration.
3. Lets you try out a piece of equipment. Another advantage to buying used vs. new equipment is that you can see if you like a particular model or brand or determine whether the equipment is right for a particular task without sinking a lot of money into the equipment. If you like the way the equipment operates, you can later replace it with a new model.
4. Someone else works out the bugs. When you buy a new piece of equipment, that equipment is untested. While most equipment lives up to the manufacturer's specifications and promises, there will always be an occasional "lemon" that is plagued with mechanical problems. When you buy a used piece of equipment, someone else has used it during those first critical months and you know that it's not a "lemon" and much less likely to break down while you're in the middle of a time-sensitive job.
While buying used heavy equipment isn't the right choice for every construction business, buying previously-owned equipment depreciates less, can free up your funds for other projects, gives you the opportunity to see if you like a model without investing a fortune, and allows the previous owner to work out the bugs. Buying used is certainly an option worth considering. Look for used heavy construction equipment for sale in your area to explore your options.Share