There’s just something exciting when it comes to making a large purchase, especially when it comes to heavy equipment for business or personal use. You want the right machine that can handle the job, will last for a long time, and won’t break your established budget. When deciding on wheel dozers, skid steer loaders and other heavy equipment, you may be wondering whether you should buy new equipment or used equipment.
It’s true that new equipment will have the latest technologies at a hefty price tag. It doesn’t matter if you’re buying paving equipment, forestry equipment, compact equipment, are a material handler, they’re all expensive when bought off the lot.
Yet, used heavy equipment can provide you with numerous benefits while still offering quality, performance and durability. Let’s check out the pros and cons to purchasing used equipment over new machinery for your projects.
The top advantage is the lower price. There’s a massive difference between several thousands to hundreds of thousands of dollars it would cost to buy new equipment. For one new piece of heavy machinery, you could purchase two used pieces of equipment — depending on the type of machine and attachments included. In addition, when you factor in taxes and insurance, you come out ahead most of the time when buying used equipment like crawler dozers, compact excavators, concrete pavers, feller bunchers, and multi-terrain loaders.
The moment you take new backhoe loaders and other construction equipment from a dealer, the machines begin to depreciate by as much as 20 percent to 40 percent within that first year. With proper maintenance and repair, the heavy equipment will begin to hold its value. We know first hand that lift equipment, motor graders, wheeled excavators, and any kind of heavy duty equipment loses its value quickly once it’s off the manufacturer’s lot — especially if it isn’t well maintained.
At that time, when you purchase the same equipment used, you avoid the high initial price as well as the massive depreciation as you now own the used equipment during its stable value years. When it comes time to resell it, you could gain close to the same amount of money when you first purchased the used equipment when it is well-maintained.
Due to the heavy duty nature of construction equipment and the OEM (original equipment manufacturer) parts replacement that many sellers invest in when maintaining the machines, many used skid steers, multi terrain loaders and utility vehicles will still have warranties available. So you can get the equipment repaired or obtain replacement parts at lower prices to keep the equipment running at an optimal level.
There is no waiting for the new heavy equipment to be manufactured and available for sale. With used equipment, you know what is available, its condition and all the specs. In addition, many rental equipment dealers will be selling off their fleets after a year’s worth of use as they will be purchasing new machines. You can get quality mini excavators, wheel loaders, forest machines, and ground engaging tools that have been well maintained. There is usually also leasing and finance options available for used equipment.
A seller doesn’t want to have a storage space filled with attachments after selling off the main heavy equipment. Instead, they will usually include the attachments for free or at a discount. When looking at a classified ad for heavy equipment sales, check out the price that the seller wants and compare it to our used equipment on sale. You can then figure out if they rolled the attachment’s price into the used equipment price and how much of a discount you may be receiving.
Negotiate Prices for Better Deals
Sellers can be in the position to lower their prices based on demand, industry trends and the need to sell the heavy equipment quickly. These circumstances can put you in a great position to negotiate prices. Keep in mind that very rarely will they let you have it for a steal. Yet if you bring up the condition of the equipment, comparable resale values for similar equipment, and the maintenance that you might have to place into it, you can persuade the seller that your quote is the best one to take so that they can get rid of the used equipment quickly.
Consider Used Equipment for Your Job Site
When it comes to buying used heavy equipment, you can get the same good quality and durable machines at great prices. Check out rental equipment dealers, classified ads, online sites, and auctions to find used equipment that is available immediately. If the prices are still out of range for your company budget, or you need the heavy equipment for only a short amount of time for only one project, consider renting the equipment instead.
You’ll often have access to new equipment that is less than 12 months old that is well maintained by the heavy equipment rental company. So you don’t have to worry about storage costs or repairs. The rental equipment company will handle all the details, including the delivery of the heavy equipment at your specified location, at lower rental costs.