One of the biggest reasons to buy used construction equipment vs. new is the price.
When buying used construction equipment, you are also managing your overhead and maintenance costs while maximizing profits. additional benefits of buying used construction equipment may include:
Availability and capabilities
When shopping for used construction equipment, there is generally a significant selection readily available, giving you the flexibility to put your machine to work now.
Used equipment can also come with performance capabilities. If you can get access to the machines telematics, you can review alerts, fuel used, idle time, and engine hours.
Getting more bang for your buck
Have you had your eye on another piece of equipment or a particular feature? Maybe you are looking for extra cash flow to help build your business. Buying used can help give you more bang for your buck.
Can you get a warranty on used construction equipment?
More often than not, dealers of used construction equipment will offer a warranty as well as a maintenance plan.
Depreciation and resale value
Most heavy equipment will lose a significant amount of its value within the first 12 months after the sale. Then, for the remaining life of the machine, as long as it is well maintained will retain a significant portion of its value.
Where do I buy heavy equipment?
You can find local dealers, resellers, liquidations, online, or onsite auctions, to name a few.
Buying used allows the buyer to purchase quality used machinery well below retail value. Again, be sure to do your research, inspect the equipment, get as much history on the machine as possible, and make sure you understand the bidding process if you are purchasing via auction.
Most reputable dealers will have an online presence so you can read online reviews. Find out what other buyers are saying about the seller, are they being endorsed or getting complaints? Do they have warranty and maintenance options?
Use this to build a list of questions you can ask them directly concerning your specific needs and equipment requirements.
Buyers premium: When you purchase used equipment via auction or liquidation, a buyer’s premium may apply. a BP is an additional fee that the buyer has to pay in addition to the winning bid. The buyer premium could be 10% or higher.
Have you rented equipment? Construction equipment rental businesses offer up-to-date equipment so they can have a competitive advantage in the rental market. Check around; maybe you can get a list of equipment that will be coming up for sale, you could even rent it for your next project, find out if it fits your needs.
To learn more about rental options, check out our article: What are the advantages of renting vs. buying construction equipment?
To get you started, we did a little research and found a few websites that offer new and used construction equipment.
If you have additional suggestions or you have had a good or bad experience with any of the above-listed resources, we would love for you to share your experiences in the comments below.
Whether you buy new, used, or rent construction equipment, its always good to go the extra mile and weigh up all your options and decide what options are best for you and your company.
If you have questions concerning the telematics of used construction equipment, or you would like to find out more about our simplified solutions, impac Fleet offers fleet fuel cards, telematics, and world-class customer service.
To get a complimentary demo of our fuel card program and GPS solutions, call us directly at (281) 445-1100 or click here to request a demo.
Disclaimer: The content and information provided in this article is for informational and educational purposes only and does not constitute financial, business, or legal advice. Always contact a professional for your specific needs and circumstances before making any legitimate, business, tax-related, or professional business decisions.