When the time comes for your business to replace an old construction unit, it’s important to consider whether to buy new or used equipment. Keeping an eye on the latest trends while considering business needs and limited budgets can be really frustrating. Buying construction machinery is a significant expense for all companies, and has a big impact on positive cash flow. Therefore, every company should think wisely about where to invest their capital.
As many companies have a limited budget for purchasing machinery, they find the option of buying used construction equipment to the most affordable - and that’s just where it starts. Read on to learn about the many more advantages of purchasing used.
The first and foremost attractive advantage for all buyers is the financial benefit of purchasing used construction machinery compared to new.
To compare purchasing used with new, let’s have a quick look at a construction equipment depreciation fact: it is well-known that heavy equipment mostly depreciates around one year after it is purchased. This means that right after paying the invoice, the period of one year starts running. Within one year, the machine loses 20-40% of its purchasing power.
As prices of new machines are steadily growing every year, purchasing a pre-owned machine is an easy option for getting a good quality machine for the best value.
Besides saving money on the initial cost of the machine, there are also long-term savings, such as lower taxes, lower insurance fees and also lower operating costs.
Let’s look at used machinery from the other side. When a company decides to replace a machine, they might want to sell their pre-owned equipment. Keep in mind that if the construction unit was bought for a discounted price originally, the biggest depreciation has already occured. If the machine is well maintained, there is a high possibility of selling the machine at a similar price as it was bought. At the end of the day, this means it costs even less when it is resold.
There is a variety of equipment - many different variations, models, manufacturers - on the used construction machinery market. You can choose from the latest models to the oldest, with a selection of modification and additional tooling. This means companies are not reliant on the latest super modern models, which cost a large amount of money.
When buying a new unit, you might need to wait months until the machine’s first operational day. The order, manufacturing the unit, all the paperwork, and the delivery takes several months which is not exactly the time frame all buyers require. Manufacturers also like to offer many additional items and modifications that are not even needed, creating additional costs.
On the other hand, when purchasing a used machines, you can easily have it up and running within several days if needed. The machine is already ready to be transported and used.
Buyers who buy used machines are purchasing machines with pre-known performance. This helps to avoid items that have never been run. Buyers can easily physically inspect and test the machines to know exactly what they are purchasing. Many owners also keep a service book for the machine, where buyers can easily check the history of the services for which the particular unit has been used.
Many buyers are under the impression that when buying used construction units, it is risky because the machines may be of low value. It doesn’t need to be in this way. You can easily see the machine function and check the service book to understand how the machine has been used in the past and what benefits it can bring your business.
The most common mistake many people make is thinking that second-hand machines have no warranty. The truth is, these machines have wide warranty options depending on when the buyer decides to buy the unit. Many sellers are providing years of warranty locked in with a maintenance plan. In these cases, you save on future maintenance expenses and avoid unexpected surprises.
If you are looking for used construction machinery, feel free to check Kitmondo`s offerings by clicking here. You can also contact our Sales Manager Maggie at [email protected], and she will do her best to help you find the equipment for your business.