Purchasing construction equipment, whether it’s new or new-to-you, is a significant investment and one that might be out of reach for small companies. You have two options to add a new piece of machinery to your fleet — buying it new or purchasing refurbished, previously owned equipment. Which is the best option? Let’s take a closer look at the pros and cons of each choice and help you decide which one is right for you.
New construction equipment: Pros and cons
When looking to add to their equipment fleet, most people default to purchasing new machines straight from the manufacturer or a licensed seller. While doing so is an option, it does have its pros and cons.
- Pro — You know where the construction equipment is coming from: When you purchase new equipment, you never have to worry about whether or not your equipment has been taken care of during its life. It comes straight from the factory, with a minimal amount of mileage accumulated during shipping. It’s ready to go out of the box.
- Con — The price is always higher: Without exception, new equipment will always be more expensive than a used alternative. This is because as soon as your equipment leaves the factory, it starts to lose value.
- Pro — It comes with an extended warranty: If your equipment breaks down in the first year — or the first five years, depending on how extended your warranty is — it’s the manufacturer’s responsibility to repair it. This setup could potentially save you hundreds or thousands of dollars in the long run.
- Con — You may need new training for your workers: New equipment with updated controls may require further training to ensure everyone knows how they work. This issue could take some time out of your regular work schedule to implement new training.
When looking to add to their equipment fleet, most people default to purchasing new machines straight from the manufacturer or a licensed seller. (Image: via Pixabay)
If you’re purchasing heavy equipment that will be used a lot, it might be worth investing in a new piece of machinery. If you need to buy a specialty piece that won’t get a lot of use, a used piece of construction equipment might give you more bang for your buck.
Used construction equipment: Pros and cons
If new construction equipment seems out of your reach because of excessive costs, used equipment may also be an option. Let’s check out the pros and cons of purchasing used construction equipment, whether you’re looking for large or small machines.
- Pro — Lower overall cost: Depreciation reduces the resale value of your new equipment and lowers the price of used pieces. Large or small, used equipment will always cost less than new.
- Con — Incomplete maintenance histories: A complete maintenance history is rare when purchasing used equipment, so it might be impossible to know whether a machine has had any significant problems.
- Pro — No need for new training: Buying a used version of your current model reduces training time because your crew will already know how to manage the controls.
- Con—Lower resale value: You can resell used equipment, but you’ll never make your money back on that sale. You wouldn’t with new equipment, either.
If new equipment seems out of your reach because of excessive costs, used equipment may also be an option. (Image: via Pixabay)
Used construction equipment is a great option for small businesses. If you purchase your equipment from a licensed reseller or marketplace, you can be sure that even though it’s used, you can get plenty of life out of it.
Making the final decision
Now that you’ve considered all these pros and cons, what do you need to know to make the final decision? Consider your budget, the amount of life you expect to get out of each piece of equipment, and how much you need a warranty. Used equipment can serve you well, but if you plan to put a lot of miles on your new equipment, consider investing in new machinery.
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