Poor financial planning is one of the most common reasons startup construction companies fail. If you’re starting a construction company or if you’re a seasoned veteran, you know that quality, reliable construction equipment is the most essential and expensive part of your business.
You can still have an effective construction company with used construction equipment. Keep reading to learn the advantages of buying used heavy machines.
1. Used Construction Equipment Costs Less
You can save money when you purchase used construction equipment. Heavy equipment loses approximately 20 to 40 percent of its original retail price when it’s used.
Thus, if you find well-maintained construction equipment, you can save up to 50 percent compared to the new counterpart. Plus, the used equipment can perform just as well as the new equipment.
If you purchase used equipment, you could also save money on extra fees like taxes, insurance for new equipment, and the interest you’d pay when you finance the equipment.
2. Used Construction Equipment Has a Better Resale Value
When you find used pieces of equipment like these for sale, you will also save money on the resale. You will eventually want to upgrade.
New equipment depreciates much more quickly than used equipment. Because used equipment holds more of its value, you can expect to sell the used equipment for a price not too far off from what you paid, especially if you maintain your equipment.
In short, the depreciation hits you softer than when you buy new equipment.
3. You Can Find Better Features
Bells and whistles cost extra money, especially when you’re buying equipment from a certified dealer. When you’re buying used equipment for your construction site, though, you can often find pieces with the same features that would cost extra from a dealer. You can find the same fancy equipment within your budget when you look for used or reconditioned construction equipment.
4. You Don’t Have to Wait For Used Equipment
You may find the shiny, fancy equipment appealing on the showroom floor. But even if you can afford it, you will most likely have to wait months to have it in hand.
When you buy used equipment, you’re buying the equipment you’re looking at. You can drive away or have it delivered the same day you purchase it. This means less downtime for your business.
5. You Have a Wide Range to Pick From
When you’re working with a dealer, you can only choose what that dealer has. However, if you’re looking at used construction equipment, then you’re shopping cafeteria-style, picking and choosing whatever you may want. You have a much wider range of equipment to pick from.
You might think used equipment will limit your options because you can only purchase what you can find. But truthfully, you have broader options because you’re looking at different brands of the same equipment.
Be Smart, Buy Used
Used construction equipment ultimately saves you money, allowing you to invest in good equipment and put your money in other parts of your operation.
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