davidc@ccr-mag.com
October 28, 2021
Construction equipment can be expensive to purchase and maintain. If the equipment is well maintained, the returns are worth the amount paid for it. However, you don't have to go for brand-new equipment all the time. Sometimes it may be better to purchase used construction equipment, especially if you need to consider factors like finances, preferences, and availability.
You can get original equipment from used equipment dealers, which would serve you better than fake equipment, which seems to be flooding today's market. As long as you know what construction equipment you need, you might have no problem opting for a used one. You can also analyze the usage of those machines and compare them with your expected benefits to ensure there's value in your purchase.
You can get various used construction equipment, such as rough terrain cranes, asphalt pavers, and motor graders, from stores selling used equipment. Buying such equipment would offer you the following benefits.
1. Easily Finding The Features You’re Looking For
Finding your desired equipment can be challenging at times because technology in the construction industry doesn't move as fast as in other areas. Therefore, equipment that has the features you desire could be expensive and beyond your budget reach. Or perhaps the brand-new model you’re seeking is unavailable.
Instead of missing out on them, consider buying used models that have the features you’re looking for. You can get used to new models with updated features at the same or equal price as brand-new old models.
2. Getting The Equipment At A Lower Cost
Brand-new construction equipment is expensive, and the cost may keep going up. Buying new equipment could mean you have to dig into your accounts to afford it, which at times could affect your other business operations.
Understandably, people go for brand-new equipment as they don't want to compromise quality. However, you can save money by purchasing used equipment. Superior-functioning equipment doesn’t lose its quality just because it has been used before. If the equipment has been appropriately maintained, it can still function at its best level of efficiency for years before needing a replacement.
3. Avoiding First-Year Depreciation
Construction equipment, like other types of machinery, depreciates with time. However, the depreciation rate is usually highest in the first year, with machines depreciating between 20% and 40%, then it slows down each subsequent year.
Therefore, when you choose to buy used equipment, you avoid the first-year depreciation and get it at a significantly reduced price. Because the depreciation rate can drop to single digits in other years, the equipment would hold its value for a long time. If you choose to resell the equipment in the future, you'd get relatively reasonable prices with a slight deviation from what you paid for.
4. Enjoying Reduced Wait
Time In the case of brand-new equipment, several documents and fees are required before delivery is made. Also, the number of brand-new equipment available may be limited, which means it would take time to find the right one. If you want to purchase equipment for urgent work, this would be a disadvantage to you. On the contrary, with used equipment, it won’t require too much time to process the transfer documents, and the delivery can take less than a week to complete. If you're buying from a direct seller, you can even pay for the equipment and process the transfer documents later.
5. Quickly Selling It When Needed
Construction contracts come in different natures, and they may all require different equipment. These jobs are often temporary and could last from one to three years. When you have to change your equipment, you may have to sell either your brand-new or used machinery, depending on what you need for your next project.
If you’d have to sell your newly purchased equipment, you'd likely sell it at a lower cost because of depreciation. However, in the case of used equipment, you can quickly sell it at a good resale value, then you can purchase another used equipment necessary for your next construction project. If the dealer agrees, you can also exchange equipment for equipment and either pay or get some extra money for it.
6. Taking Advantage Of Warranties
Many used equipment dealers would offer warranties and discounts on every purchase you make. The dealer can also offer maintenance and protection plans so you can pay less to get your equipment repaired and maintained by the dealer. These plans are always discounted compared to what you’d have paid outside the dealership. In the end, you’d avoid high business costs associated with maintaining brand-new equipment.
Conclusion
When buying construction equipment, consider buying used machinery because doing so offers several benefits. You could easily find your desired features from used equipment and get it at a low cost. Doing this would also allow you to avoid first-year depreciation and too long waiting time associated with buying brand-new equipment. You can also take advantage of certain warranties offered by dealers of such used equipment. Moreover, used machinery has a good resale value and low depreciation rate, so it could be a wise investment.
