Three Benefits Beyond the Purchase Price of Buying Used Machinery
Looking to purchase a new piece of machinery? Have you thought of buying used?
Purchasing a used machine can save you thousands of dollars, leaving you with more money to invest in other areas of your business. But, the benefits of buying used, extends beyond the purchase price in other ways.
Here are three benefits to consider when making your next equipment purchase:
Every year manufacturers release new lines of equipment but what really changes? The design? Engine? Technology? Typically, there isn’t much that changes from year to year. A few new technological advancements we have seen in equipment are telematics, Tier 4 engines, GPS, and advanced operator controls. However, the manufacturer’s latest features raise the price tag new machines.
Your crew knows what works best for them. Machine operators usually have a preference on machinery brand or operator controls; so why change and risk slowing productivity? Communicate with your crew to find their preferences when purchasing a machine. If you decide that features such as telematics and GPS are needed, there are several aftermarket options to choose from to be added to your used machine.
So, be sure to ask yourself, “Do you really need the latest technology on your machine?” More bells and whistles may end up causing you more headaches than expected. Different controls may end up lowering your crews’ productivity short-term as they get used to them. And, new machines with Tier 4 engines may cost you more in service and repair costs.
Less waiting keeps you operating
Downtime is the biggest obstacle for contractors to work around and buying new equipment certainly does not reduce it. In fact, for several popular brands of heavy equipment there is usually a large backlog — production can’t keep up with demand. That means, you place an order today and have to wait for months before you can finally put a new machine to work. When you buy a used machine, its already built and ready to be put to work immediately.
Replacement parts are also more readily available for used machines compared to new. If your machine breaks down, you can contact the used dealer you purchased it from and ask if they have replacement parts or for a recommendation on where to find them.
When it is time to sell, get a better ROI
Just like a new car depreciates 20 to 40 percent the day you buy it, new equipment will be significantly worth less after its first day on the job. So, when it’s time for you to sell it or trade it in, you can expect to take a significant financial hit, even if your machine is still in perfect condition.
Used machinery retains its value better, especially if it’s been well cared for and you have service records. Buying and selling used machinery helps you keep more of your hard-earned money when it’s time to sell.
Where you buy used equipment matters! Make sure to purchase from a trustworthy dealer that inspects every machine and holds their quality to a high standard. Look for dealers that are members of the Independent Equipment Dealers Association (IEDA). Its members are honest professionals that take pride in what they do and are committed to going the extra mile for their customers. They can help you track down that piece of equipment you’re looking for.