Equipment procurement and maintenance is often one of the biggest costs of any construction project. For that reason, many companies are buying used equipment instead of new ones.
One of the best ways to decrease the construction project’s expenses is to buy pre-owned equipment. But apart from saving money, what are the other advantages that you can expect? And in turn, what are the disadvantages of buying used construction equipment?
The pros of buying used construction equipment
1. Reduced cost
Buying new equipment is always more expensive than going for used ones, and if you’re trying to control your project budget, doing the latter is an excellent strategy. If you can find a good deal with a manufacturer, like when you’re looking for heavy-duty Hitachi diggers for sale in New Zealand, there’s also a possibility that you can buy two or three pieces of equipment for the cost of a single new one.
2. More options
There are a lot of types of used construction equipment that are available for sale, and there are higher chances that you can strike a good deal. If you have the time, wait until the market shifts to where you can buy equipment for lower prices. Since it’s currently a buyers’ market, you have a lot of room for choosing the best equipment and negotiating their prices.
3. Limited depreciation
When you buy new equipment, the initial depreciation can significantly affect your budget. So if you buy used equipment, you won’t have to suffer through the initial depreciation, which can help your expenses stay on track.
The cons of buying used construction equipment
1. No warranty
There’s a chance that your used construction equipment will come with an extended warranty, but if it doesn’t, you’ll have to pay the repair bills if ever it breaks or malfunctions. To avoid this, inspect the equipment closely, preferably with an experienced specialist by your side who can spot flaws or hidden issues. Better yet, buy equipment that comes with an extended warranty and is in good condition.
2. Dishonest sellers
Recognizing dishonest sellers on the market can be challenging. There are lots of sources that can be unreliable, and some equipment on sale can be stolen or pending repossession. Needless to say, buying equipment from a bad business means trouble for your finances, so make sure you’re dealing with a legitimate seller.
3. Risk to safety
When buying used equipment, always ask for the product history and maintenance record. In this way, you can see what type of maintenance that the piece of equipment has gone through — or lack thereof — and gauge the safety issues that may arise if you use it.
If you buy a piece of used equipment that is poorly maintained and has hidden issues, there is a risk to workers and the property you’re working on.
After weighing the pros and cons, you should be able to know what decision will be best for your project, your company, and your budget. Keep in mind that buying used equipment can have many advantages, especially when it comes to cost, but it can also put you at several risks.