There comes a time when you have to take a step back and find out if your construction equipment purchases are making you money or draining your profits. Purchasing brand new construction equipment at such high prices can drain your company’s profit. If you are interested in increasing your profit by lowering construction equipment purchasing costs, consider investing in our used construction equipment.
While there are many advantages to buying used construction equipment, the most obvious is the financial advantage. The plain and simple truth is that it is just less expensive to purchase used construction equipment than it is to buy brand new. New construction equipment prices are only climbing, which increases the price gap between new and used equipment.
Another financial advantage to buying used construction equipment is the resale value. Buying a new piece of construction equipment is kind of like buying a new car. As soon as you buy it and use it for the first time, the resale value automatically drops by twenty to forty percent. This is crazy, considering the fact that the point of using the equipment for that first job is to make money, not lose it.
Things to Consider When Purchasing Used Construction Equipment
When considering the financial advantages of buying used, you should even consider things like taxes, interest, and insurance. When you are dealing with the lower price of a used machine, the amount you pay toward taxes, interest, and insurance is often less.
Cash flow management is another advantage to buying used construction equipment. When you invest a large amount of money in a piece of heavy equipment, you have to take a look at how the investment will affect your business overall. When you finance used equipment, the monthly payment will likely be considerably less than if you finance new equipment. This means that it will be easier overall for you to meet your payments every month. Not having to shell out a huge chunk of money for new construction equipment payments also help you use your money wisely, as you will have more freedom in your budget to put the money where it actually needs to be spent.
When considering quality, you might automatically assume that buying new equipment is the best way to ensure quality. This is not necessarily true. While buying a shiny, new telehandler does give you the peace of mind that comes from knowing it has just left the manufacturer, you can often get a superior quality used the machine for a lower price. This is the time to think about what you are getting from your investment. When buying new equipment, you might have to sacrifice and get the lesser quality brand because it is offered at a better price. The refurbished versions of the superior brand are often of equal or lesser cost. Think hard about why you would go for the inferior machine when you could have the superior model for a better cost.
If you are interested in purchasing used construction equipment, contact us today for further assistance.