Purchasing a new piece of construction equipment is not only expensive, but it can also take time, research, and capital to determine what piece of equipment is best for you.
When you are looking to replace or add equipment to expand your fleet, renting and buying new aren’t the only two options. Before making the decision to buy a piece of construction equipment, consider the benefits of used equipment.
Investing in equipment is a great way to unleash the potential for business growth. However, choosing a quality piece of used construction equipment requires much less of an upfront cost. Used equipment that has been properly maintained will potentially provide reliable service for just as long as new equipment. These savings can be put toward attachments, maintenance costs for your fleet, or even buying a second piece of equipment. Choosing used equipment can help maximize your money and help grow your business’s bottom line.
Within the first 12 months of purchasing a piece of new equipment, it is common for the equipment to depreciate. Purchasing used equipment allows you to avoid absorbing the depreciation cost. Because of this decrease in value, companies that buy new equipment typically see a lower ROI than they would with used equipment.
When purchasing equipment, it is crucial to consider how important the speed of delivery is. With new equipment, it may take some time to place the order. You may be waiting for your equipment to be manufactured. Used equipment is often readily available, in stock, and waiting in the dealer’s lot. It can be delivered so you can start using it immediately after purchase. The dealer may be able to provide you with information that can tell you how well the piece of equipment was maintained and where it was previously used so you can determine the quality of the equipment. Choosing used equipment means you can start tackling your toughest projects right away and see a faster ROI.
Another benefit of choosing used equipment is that the cost of insurance is lower. When buying new equipment, insurance will assess the equipment as new, even if depreciation is already occurring. Because the upfront value of used equipment is lower than new equipment, the cost of insurance is much less.
If you are faced with a project that requires a specific piece of equipment that you won’t use again, choosing used equipment may be in your best financial interest. The initial purchase of used equipment is not only cheaper than new equipment, but it is also easier to sell used equipment once you’re finished with it.
Although renting is a good option, buying can be a more profitable one. Selling used equipment when the work is done puts most of the money you spent directly back into your pocket. To avoid renting equipment for an extended period of time, it may make sense, financially, to purchase used equipment for longer projects and then sell it when your project is complete.
Purchasing a piece of used equipment allows for one less manufactured machine. This reduces the amount of steel and iron consumed, the industrial waste produced, and overall factory carbon emissions. It is crucial to the environment to get the most use out of construction equipment before it goes to a scrapyard, and purchasing used equipment is a great way to maximize its use.
Purchasing a piece of construction equipment is a big decision, one that takes a lot of time and research to make sure you get exactly what you are looking for.
Choosing new construction equipment isn’t always the best option, as much as we might feel the excitement that buying new brings. For a budget-friendly, quality piece of equipment that is environmentally sustainable, choosing used construction equipment might be your better option.
If you are looking to purchase new or used equipment, Leppo has you covered. We have maintenance and repair shops on site, so our equipment is maintained to the highest standards. That’s an immediate benefit for anyone looking for used equipment.
For questions regarding our extensive range of readily available used construction equipment, contact us today.