Construction equipment is expensive and for many businesses, especially smaller ones, that makes buying new impossible. Of course, you can hire it, but if you need equipment regularly that can prove costly too. There is an affordable alternative, and that’s to buy used construction equipment.
The construction equipment market covers a wide range of machines, including excavators, dumpers, loaders and rollers. These machines are built to work hard and therefore tend to have a long service life. This means that provided they’ve been properly serviced and maintained, they can still give many years of productive work for second and third owners.
It’s always worth checking the service history of any plant you’re looking to buy. This shouldn’t be a problem if the machine has been maintained by an authorised dealer. If you need extra reassurance, you can always opt to pay for a professional inspection of the machine before buying. This can also help you understand how much wear and tear there is on various components so you can get an idea of when they may need to be replaced.
If the machine has been refurbished or rebuilt, then this work will often come with a warranty, so you can gain extra peace of mind when buying.
If you buy construction equipment new, just as with a new car, it will lose value in depreciation. The difference with construction equipment is that while this drop is fairly large in the first couple of years, the rate slows down in later years as long as the plant is properly maintained. Buying used therefore helps you avoid that initial depreciation hit.
You may think that you’re missing out on the latest features by purchasing your plant used. However, the technology in construction machines tends to change quite slowly, so there are few disadvantages to using a dumper, for example, that’s a few years old rather than a new one.
Companies often budget for new machinery as part of winning a big contract. There are some disadvantages to doing this. One is that the lead time on brand new machines can be quite long, so there may be a waiting list to get a machine from the manufacturer. Buying used avoids this and allows you to get the machines you need straight away.
It’s also important to look at the total ownership cost of the plant. This means looking not just at the purchase price of a machine but at the maintenance and fuel costs that you will incur over the time that you use it. You also need to take account of what you will get for the machine if you sell it at the end of a contract. Buying a used machine that has already taken its biggest depreciation hit can mean a big reduction in ownership cost.
No business wants to spend money unnecessarily. If you’re in the market for construction equipment, buying used rather than new can allow you to make big savings without compromising on quality.