Buying construction equipment is a significant expense for any business, as it requires a large amount of capital to purchase, in addition to the time spent finding the right equipment for your jobs. One option that many companies consider is to buy used heavy equipment, which can come with many advantages compared to buying new.
Lower cost – The most obvious advantage when it comes to buying used construction equipment is that it is cheaper. It is estimated that once any type of heavy machinery is used, its value drops by 20 to 40 percent. Finding a used dozer for sale in good condition can give you a machine that is just as effective as a new one, but for a reduced rate.
Those savings don’t simply end at the purchase price either. When you factor in added expenses such as taxes, insurance, or interest charges on financed purchases, the cost difference becomes even more skewed in favor of used equipment. This can be a huge benefit for your monthly cash flow, which can pay big dividends. Without the pressure of a higher fixed expense, there will be less pressure to value short-term needs or long-term answers.
Your dollar goes further – Going with the same theme, you will get more bang for your buck when buying used. For example, you may have your eye on certain features for an excavator that are out of your budget when buying new, especially when it comes to the best brands on the market. In that case, your decision might be between buying equipment from a lesser brand or looking for used excavators for sale from the best brands in the industry that have all of the features you need.
Better resale value – Buying used will also help with resale value if and when you do look to move on from your equipment. Because of the aforementioned depreciation once a piece of equipment is used, your future selling price will likely be a fraction of the purchase price if you buy new. When buying used, you are already buying at a discount where the largest depreciation has already taken place, so the cost to you is smaller when you resell.
Best possible selection – Buying new can sometimes mean waiting for the equipment to be manufactured, which can often mean lengthy delays. When buying used, you will know exactly the selection you have available, giving you the best information before you make your decision. This can help you hone in on the right equipment for your needs.