Whether you plan on buying an excavator, an aerial lift, or a forklift, buying heavy equipment is one ‘heavy’ task because of one reason: it’s going to cost you a chunk of money. If you don’t find and choose the right equipment, you will only regret it later. For this, you have to go through an even more arduous task, which is going through the dilemma of old vs. new equipment. The answer lies in your unique position and the best interest of your company. Here is a comparison between these and where to find the right equipment to help you decide.
Why Buy New Equipment?
If you don’t have an issue with cost, then it makes sense to just buy new equipment. New equipment is more reliable and hence brings more productivity without fail. When you are the first one to use it, then you don’t need to worry about how it was used before. This gives you peace of mind and it also lowers the maintenance cost significantly. The warranty backup will also come in handy for as long as it goes. When you shop for new equipment, the salesperson will show you the upgraded and new technology, which nowadays means it is smarter and more efficient. Such advanced technology makes all operations easier and proficient.
Where it costs a lot, it still saves a lot of your money in terms of low repair costs, low maintenance, and the tax advantages for new equipment.
To buy new equipment, you can visit Caterpillar, Komatsu, Hitachi, Volvo or Liebherr retailers near you or consider other local retailers for heavy equipment. To research first, you can take a look at their websites.
Why Not New Equipment?
Heavy equipment is considered high-ticket due to the costs. They require major, capital outlay investment. Where tax advantage may save you money, the depreciation will cost lots of it (consult your accountant!). So, if you lose resale value because of it, and you have capital tied up, you may risk the investment return if you go with new equipment. Also, if you buy advanced ‘smarter’ equipment, keep training or getting new employees in mind.
Why Buy Used Equipment?
You guessed it: the upfront cost is lower. But then factor in the added expenses of taxes, interest or insurance, and the difference in cost slants towards old equipment in terms of cost. You can’t avoid depreciation, but when you buy used, the initial heavy depreciation has already been paid by someone else, and the old equipment depreciates at a much lower rate than a new one. If you plan to resell the used equipment, it will hold its value. You just need to keep up regular maintenance.
Finding used equipment is quite easy nowadays, you don’t need to dig through newspapers for ads. Instead, you can find used forklifts or excavators on used equipment search engines. Search engines are a great help when you need to buy used equipment because they not only help you with browsing through search filters, but also help with market price calculation. Many websites sell used equipment. For example, if you want to find used diesel forklifts for sale, you may even discover an exclusive website for forklifts. The benefit of these websites is that you may get better deals because their sellers are usually vetted for.
Another popular way of getting used equipment is renting instead of buying it, especially if you need it temporarily and on a schedule. These peer-to-peer sharing websites allow you to lend or rent equipment on a platform. They not only inspect the equipment itself, but there are also insurance verification and background checks for your peace of mind. There is usually online support present that guides you in case of any issue. If you’re old school you can look for your aerial lift in the classifieds in newspapers or websites that display dealer classified ads.
Why Not Buy Used Equipment?
Where the cost is low, you might get a bad deal, because there are no mandatory inspections or certifications, especially if you are getting it directly from the dealer. The wear and tear around the used equipment may not always be visible, and it might be in worse condition than it looks, in addition to possible subpar safety. These chances are higher with private dealers, and with no warranty, you might end up with greater repair and maintenance costs.
Whether you buy used or new equipment depends on the unique and specific needs of your company. It is important to do market research, know the exact needs of your business now and in the future and ensure you ask lots of questions from a salesperson whether you buy new or used or whether you rent or buy from a website.