We would all love to get our equipment brand new right? We all want the shiny, polished “wow” quality, with no scratches or dings, and the latest bells and whistles– But all that comes at a tremendous expense–both upfront in retail costs and taxes, and concealed in depreciations.
There’s a reason why we use the term “standard equipment” so much in our industry. It’s because heavy equipment doesn’t change in functionality all that much over time. Here’s a look at the top 5 advantages of purchasing used equipment over new equipment in 2020.
1. Lower Costs
Buying a new piece of equipment is a big expenditure with funds that might be better spent on the second piece of equipment, accessories or maintaining the equipment you already have.
Depending on supply and demand, the cost of one new piece of equipment may equal two or three used ones. Based on your situation, purchasing multiple machines might make more sense rather than getting one for the same price.
2. Avoid Initial Depreciation
Modern heavy equipment is no different than a new car as they depreciate in value the minute you drive them off the lot–as much as 20-40% in the first 12 months! When you buy used machinery, you avoid the initial depreciation and maintain more value in your purchase.
3. Used Equipment Holds its Value
Although the equipment used has depreciated, if it is well maintained, it may retain its value. Once it is time to sell, you will potentially get back what you once paid given that you sell at the right time and to a market where your equipment is in demand.
Keep a daily maintenance schedule, and register all facilities and improvements for potential purchasers.
4. More Choice
The global demand for used equipment is huge, that’s putting it mildly. This is good news. That means more equipment options than any manufacturer could ever have provided.
No matter what kind of equipment you’re searching for, there are thousands of items available for sale all over North America and around the world at any given time. Options such as Kijiji and Facebook marketplace are great starting points.
5. Flexibility
Buying used equipment offers your business a high degree of flexibility. When you have short-term jobs involving a particular type of machine, you can buy fairly quickly and then sell the equipment conveniently after the work wraps up — with little depreciation. If you don’t want the hassle of buying and selling so quickly, there are many options to rent as well.
Buying new can mean long wait times for orders of equipment and a substantial loss of value from the time you purchase to the time you sell.
Ultimately it can be very tempting to purchase brand new equipment, there are plenty of enticing factors but used equipment offers much better value than new. And if you finance your equipment purchases, you can spread the cost out over years—saving you cash to run your business.
Ready to purchase equipment? Contact the experts at Wecon Systems to set up a sales consultation!