Running a successful construction business is not nearly as easy as we would like to think. You are going to have to face a number of challenges, including:
- Giving accurate quotes to customers (you will be between a rock and a hard place if you underestimated costs and can’t charge more than the initial quote)
- Finding the capital to invest in the right machinery
- Carefully monitoring your employees
There are so many things to consider. Before you can even get started, you need to make sure that you have the right equipment. You might be discouraged to hear that equipment can be a lot more expensive than you expected. The good news is that there are a lot of ways to find equipment more cheaply. Buying used machinery could be the way to go.
Should You Buy Used Machinery?
There’s just something thrilling and satisfying that you feel when you buy a brand new, shiny piece of equipment. Whether it’s the newest kitchen appliance or the top-of-the-line heavy equipment, many people ignore the sticker price and all of the extra costs that come with paying for “new” and forget that quite often a quality used one would have major benefits.
Instead of paying the full price for your next heavy equipment purchase on something that is going to significantly depreciate as soon as you buy it, check out these advantages that come with turning to used heavy equipment for your needs instead.
Advantages to Used Heavy Equipment
1. Your wallet will thank you.
Of course, when you’re looking to buy heavy equipment, it’s a major investment. Whatever you are looking for, the new price can easily amount to two or three used ones. Instead of going into deep debt or using your nest egg to buy fresh off the lot, check into some construction equipment auctions to see if they have what you need much cheaper and still in good shape.
2. You have more options.
When you take away the limit that your equipment has to be brand new, you open yourself to a world of new choices. Rather than having to purchase from specific companies, you can open your search up to the entire world through the used equipment market that extends everywhere. For much less than you would have spent on a new piece of machinery, you have a mecca of choices in front of you.
3. The value remains comparable to what you paid for it.
Unlike new heavy equipment that loses 20 to 40 percent in depreciation within the first year, your used equipment depreciates on a much slower scale. In fact, if you keep it well-maintained and in good shape, there is little to no depreciation at all.
4. It costs less to own used equipment.
Provided you purchase equipment that is in decent shape and you are not sinking loads of money into it regularly for it to work, quality used equipment is a smart investment. It holds its value well, so you can buy it and resell it for close to what you paid for it if you no longer need it. Meanwhile, it’s great as a deductible expense, since you can claim interest, maintenance, insurance, and more on your taxes.
Speaking of insurance, like when you purchase a used car versus a new one, it’s much cheaper to get insurance on the used equipment. Premiums are generally based on the replacement cost of the item, so used is always going to be less expensive to replace than new, even if the quality and value are the same.
Why Buy New? Make the Smart Decision and Get Used Heavy Equipment
With all of these advantages to purchasing used heavy equipment, there is no sound financial reason to buy your next machinery brand new. Head to the used heavy equipment market or the live auctions and expand your business with a smart investment today!