When you buy used construction machinery that’s been well maintained, you protect your bottom line while expanding your fleet.
Whether you’re looking to expand your fleet or replace aging equipment, renting and buying new aren’t your only options. In some instances, buying used heavy machinery may be the better path for your company and your bottom line. The obvious benefit compared to buying new is a lower capital cost, but the advantages of buying construction equipment used don’t end there.
Read on to discover 9 reasons it sometimes makes sense to buy used construction machinery, whether it’s a boom lift, scissor lift, or even an excavator. All of these can be smart machines to invest in if your utilization is high and the used equipment has been well maintained.
Buying used vs. new preserves capital for other business priorities, which can help you keep up with the latest technology or grow your business. Alternatively, you can put the savings toward equipment accessories such as a larger bucket for a backhoe and a grapple for a skid steer.
Preserve borrowing power
When you take on less debt, you preserve more of your borrowing power for other investments.
Used heavy equipment values decrease slowly
Used heavy construction equipment holds its value, in large part because much of the asset depreciation has already occurred. By some estimates, 20% to 40% of the value of new heavy equipment is lost to depreciation within the first year of ownership. By purchasing used heavy machinery, you avoid this initial “hit” and reap the savings from a much lower rate of depreciation.
The used heavy equipment marketplace has a vast inventory
With new models of heavy equipment such as skid steers and excavators coming out every few years, the used equipment marketplace offers an extensive inventory to choose from, with models spanning several generations. Chances are good that you can find the model you’re looking for.
Enjoy immediate availability
Due to purchasing lead times, buying new requires planning ahead . When you order a new piece of heavy equipment, you may not have it in your yard for months. When you purchase a piece of used machinery, it’s yours almost immediately.
Pay less in interest
Most companies rely on financing to purchase new equipment, and the interest on those loans adds up. When you purchase used equipment, the lower price tag means less financing — and less interest.
Buying used heavy construction equipment gives you flexibility
Have a project that requires a piece of equipment you don’t own? Renting is an ideal way to get what you need quickly; but buying used equipment gives you the flexibility to either keep the equipment at the end of the project or sell it. If you sell it, you can potentially recoup most of your investment.
Used heavy construction equipment can save on training costs
Buy new and you’ll have access to the latest technologies — technologies your crews will need to learn how to use. If you buy used, chances are your workers already know how to operate the equipment.
Buying used heavy machinery improves sustainability
Many companies today are looking to increase the sustainability of their operations and shrink their carbon footprint. Giving a second life to assets that already exist reduces the need for newly manufactured equipment and the consumption of natural resources such as steel and iron.
Of course, not all used heavy equipment is a good investment. Buying used equipment that hasn’t been well maintained can cost you more in repairs over time than you saved on the purchase price. For that reason, choosing a reputable dealer when buying used is critically important. United Rentals offers a wide variety of used, jobsite-tested equipment from top manufacturers that has been maintained and consistently inspected in accordance with manufacturer specifications.