By 2026, the global market for construction equipment is expected to reach approximately $ 133 billion. Given that North America is the second largest market in this sector, it’s conceivable that boom trucks, cranes, diggers, dump trucks, drywall loaders, and other construction machinery will be doing high volume business in the coming years.
Projected growth in building projects all over the country is further reason why construction companies, both large and small, are thinking of adding new machinery to scale up their operations.
But the question is this: if you’re a small or medium-sized enterprise, should you be purchasing new or used equipment at this time?
There is no question that shiny new machinery has great appeal. Especially for up-and-coming businesses, for whom such acquisitions are proud milestones representing hard work and success.
But there’s a strong case to be made for purchasing used units as well. Below, we’ll walk you through the most significant advantages of pre-owned machinery and why they may be a better investment for you in the long run.
#1: Cash Flow
Lower price for used equipment means less impact on your cash flow. Add to this the lower sales tax required for a well-maintained, second-hand unit that will give you years of service. With these savings, you may even have leftover funds to invest in other equipment that will help you grow your business.
Like brand new automobiles, heavy equipment also starts depreciating in value from the minute you purchase it. The worst period is the first 12 months, when depreciation can be around 20%-40%. Are you ready to weather this massive dip in value in the first year when there are used units that can give you a comparable level of service?
Something else to remember is that used equipment can largely hold its value if you perform regular maintenance and upkeep. Logging every repair or maintenance job on it will give prospective buyers greater confidence in the worth of the unit in case you’re going to sell it in the future.
#3: Wait Time
Custom Truck One Source is a rare, nationwide dealership that always has a large inventory of brand new construction equipment on the ground and ready to go. Most dealerships don’t. This means you have to calculate wait time between when you place the order and when you receive it. With second-hand equipment that is not a concern.
#4: Upgraded Features
Unlike, for example, cellphones, advanced features on heavy equipment don’t get rolled out very often. So, if it’s not too old, you can still get most of the features you desire in a used unit.
#5: Temporary Ownership
Job contracts come in various shapes and forms. If a particular one is lucrative, even in the short term, but contingent on owning a specialized piece of equipment, a used unit would see you through the duration of the contract. Afterwards, you always have the option to sell. You can recoup a significant portion of your purchase cost, and add on the profits from the contract to come out on the right side with extra cash in your pocket.
#6: Lower Insurance Costs
Insurance companies typically consider cost of replacement, not current market value, of a piece of equipment. So, a new unit, which will obviously cost more to replace, will carry higher insurance premiums than a used one.
Custom Truck One Source: Top Choice for Used Construction Equipment Buyers in the U.S.
As the first true single-source provider of heavy equipment in the country, Custom Truck One Source is a trusted name in the used machinery market.
• We Have Multiple Locations: You don’t have to come to us. We come to you!
• Our Inventory Is Unbeatable: No wait time on our used units. They’re always on the ground and we are well-stocked throughout the year.
• We Look After The Details: We offer in-house financing, which takes that concern off the table for you.
• We Offer Best-In-Class Customer Service: Ask any Custom Truck client, and you’ll know our top-notch service team offers the same level of care to both new and used equipment buyers.
Contact us about your used construction equipment needs today! We’ll have the right solution for you.