Benefits of Buying Pre-owned Equipment [All You Need to Know]
Acquiring heavy equipment is not a choice but a necessity when it comes to businesses working in construction, agriculture, construction, or landscaping. Heavy equipment comes along with a huge price that you have to pay, which is a heavy investment, so you have to purchase according to your budget. Buying the latest models is mostly the right way to go but in many circumstances, people often go for used Pre-Owned machinery. The advantages of getting your hands on used machinery are difficult to deny.
If you are planning to add any equipment for construction or whatsoever purpose, you should consider all the buying options. Before you make any firm decision on buying a machine, which in fact is a huge investment to make, consider the following benefits of buying preowned equipment purchased from a trustworthy source.
Savings
Buying used machinery can save you up to 25% off the original price. It provides you almost similar productivity and efficiency as the new one. Though it’s exciting to buy new stuff that’s shiny and appealing, soon after a few days of usage and trekking around dirt, the feeling will fade. Machinery acquires dents. So buying used equipment when investing in asset plant and machinery is actually a wise choice.
Huge Range of Selection
When you opt for buying used equipment, there is a wide range of products to pick from. You can lay your eyes on many different models from each year and even generations and make a fair choice. You can purchase equipment with technology that your operator is familiar with. In this way, no time is wasted on training and results in an excellent efficiency percentage.
Increased Cash Flow
By deciding to purchase a used machine, you actually are saving capital and can direct it later to other ways to make your business grow even more. Heavy equipment requires a large percentage of the total budget. So a huge benefit of buying pre-owned equipment is that you preserve your capital.
Increase Flexibility
You will be able to bid on tasks that you would not be able to bid on if you were required to purchase new machinery since you can obtain used equipment relatively simply and for a lower financial outlay than a comparable model of a new truck, dozer, loader, or other piece of equipment.
You may include the temporary cost of financing used equipment as one of the expenses associated with doing specialized work for many months or the duration of a contract. If you do not secure another contract that requires the specialist equipment, you have the option of selling it and recouping a significant portion of your original investment.
Reduced Insurance Rates
Typically, insurance companies assess the cost to replace a piece of equipment rather than its current market worth. Therefore, a new unit, which will cost more to replace, will have higher insurance rates than a used one.
Minimum Depreciation
The moment you buy any equipment, it’s value drastically drops with each passing day. For example, if you are buying a new machine worth $20000, within days, it’s the resale price could drop to $8000, which is a hard thing to swallow. If you buy used equipment, there is huge flexibility of being able to resell it with a minor or no loss at all. This is seldom the most overlooked benefit of buying used equipment.
Environmental Sustainability
Buying pre-owned equipment is healthy and green for our environment. Confused how? Let’s get it straight! Buying used machinery aids in limiting the number of new products that need to be manufactured. This significantly reduces material waste and carbon emissions which means less harm to the environment.
If your business is in a growing phase and your budget is not very flexible, buying preowned equipment is a smart and economical choice for you !