Whether you’re just starting your fleet or expanding your business, you may wonder if you should buy brand new machinery. Purchasing new heavy equipment may seem tempting but isn’t always the best solution. Certain circumstances may cause you to shift gears and consider buying previously owned equipment. Whether you’re looking to save time or money, here are Equipment Trader’s seven situations perfect for purchasing used equipment.
1. You Can’t Afford to Buy New
Used heavy equipment will cost you less than buying new equipment. Machines typically depreciate within the first year, between 20% and 40%, leading to a lower resale value compared to its initial sales price. By purchasing used, you can find equipment like dozers, tractors, and more that are just as efficient as new models, for a reduced rate.
2. You’re Hoping for Lower Insurance Costs
Another money-saving advantage of buying used is the lower insurance cost. Since your equipment is older, your insurance premiums will be lower. Since insurance for new equipment assess replacement costs at a new-machine value, you can likely pay a lower premium for used equipment.
3. You’re Searching for a Larger Selection
When you buy new, you’re limited to the most recent year’s models, but when you search for used equipment, you’ll find a large inventory of heavy equipment, from backhoes and tractors to skid steers and excavators, from sellers throughout the country. Browse older models that can handle your basic needs, along with models that were manufactured over the last few years, at a fraction of the cost. Start by browsing Equipment Trader’s virtual marketplace.
4. You’re on a Tight Schedule
Skip the long manufacturer lead times when you buy used equipment. Shopping previously owned equipment gives you a better chance of not only finding what you need, but getting it to you sooner so you can put it right to work. Sitting idly by as you wait for your new equipment to be built and arrive, costs you valuable time, especially when you don’t have the luxury of a flexible schedule.
5. You Don’t Have Time to Train
Once you get your equipment, training time is another factor that plays into staying on schedule. It can be time consuming to train operators on the guidelines of new machinery. Since the selection of used equipment is so large, you’ll certainly be able to find a unit that has the features and mechanisms that your operators are most familiar with.
6. You’re Planning on Selling the Equipment After Use
Since there is less depreciation after the first year of ownership, used equipment often has a resale price at or near what you paid for the machinery secondhand. If you keep up with regular maintenance, you may be able to sell or trade in the equipment for close to the same price you purchased it for.
If you know for sure that you’ll only be using your equipment for a certain amount of time, you may also consider renting equipment.
7. You’re Environmentally Conscious
Think green when purchasing your heavy equipment. Buying from a marketplace of used equipment helps reduce the number of machines produced each year. This decreases the amount of industrial waste and factory carbon emissions. It’s not only great for the Earth, but it feels good knowing you’ve reduced your carbon footprint.
Conclusion: The heavy equipment industry is thriving thanks to the extensive inventory of quality machines from top-of-the-line manufacturers. Just because the equipment was purchased secondhand does not mean it’s any less productive as brand-new machinery. If you are searching for heavy machinery for construction, agriculture, or more, browse the nationwide inventory of used equipment for sale and for rent on EquipmentTrader.com and on our sister site RockAndDirt.com.
What situations led to you purchasing used equipment? Let us know in the comments below.