If you've been considering investing in your own construction equipment instead of renting all the time, you may be trying to decide if you should buy new or used. While many people think that used equipment ends up being more expensive because of the likelihood of repairs, buying items used is advantageous for several reasons. Here are a couple of things to think about.
Better Return On Investment
Buying used can actually stretch your money further than buying new. In fact, as soon as new construction equipment is used for the very first time, its value drops immediately, leaving you with financing on equipment that is immediately worth less than what you've financed it for. When you buy a used machine, that initial value drop has already happened, so you're paying closer to the market value for the machine.
In addition, that lower rate that you pay for used equipment may allow you to get more machine for your money. If there are features you like but can't afford in new machines, you might be able to find a used machine that has those same features for much less money. In addition, your financing and payments will automatically be lower than they would for new machines, saving you on a monthly basis in cash flow effect as well.
Greater Value Retention
When you buy your construction equipment brand new, you'll never be able to resell it for anywhere near what you paid because of the value loss that occurs as soon as the equipment is operated. Since buying used doesn't come with this same loss, you'll retain greater value in the equipment and be able to sell it for closer to what you paid when you bought it, less any wear and tear.
More Equipment To Choose From
When you buy brand new construction equipment, your options are limited to only the newest models. Sometimes, you even have to wait for the machine you want to be ordered and manufactured. If you buy used, you'll have far more options to choose from, and the equipment will be ready to go right from the start. You'll be able to leave with your equipment when you purchase it instead of potentially having to wait for it to be produced.
In addition, you'll have greater flexibility to choose what you need as compared to new models that may come with additional features you don't have any need for. The more you explore the used equipment market, the greater your options will be.Share