Used vs. New vs. Renting: Pros and ConsNovember 10, 2016
Budget-Friendly Heavy Equipment Options
One of the great things about building or expanding a fleet of heavy equipment today is the wide range of available choices. Whatever your budget, it’s now possible to find an equipment solution that will allow you to stay productive and profitable well into the future. In this article, we’ll look at three main options available to construction crews and other heavy industry operators looking to grow in a responsible manner.
Buying new lets you choose from the complete lineup of machines and equipment by Cat® and allied brands. The pros and cons of this option include:
- Pros: A new machine is delivered in pristine working condition and can be specially outfitted to the requirements of your job. You’ll benefit from the advanced technology only the newest equipment features, including integrated fleet management solutions such as the Product Link™ platform, a sophisticated tool for GPS-based reporting, mapping and monitoring of your entire fleet. New equipment also meets current emissions requirements, ensuring you will be well positioned to meet regulatory standards.
- Cons: The biggest drawback to new equipment is its higher cost. The average construction machine loses 20% of its value in the first year after purchase — that’s a loss you will have to absorb if you want to buy new. As well, new machines often come with longer wait times and more stringent lease requirements, potentially affecting the availability of credit for other things.
As an authorized Cat dealer, Fabick Cat can source a used machine from our network of nationwide partners. When you buy used, some of the pros and cons are:
- Pros: Buying used saves money. You avoid the initial depreciation of buying new, while still getting a machine that, if maintained properly, will command a strong resale value in the future. Used equipment by Cat can be rebuilt back to like-new condition, effectively providing a “second life” that saves you from having to replace it down the line.
- Cons: The biggest drawback to buying used is the uncertainty. With used, you never know if a machine has been properly maintained. As well, used equipment can be expensive to retrofit with current technology.
Renting is a great potential alternative to buying outright for a number of reasons. Some of the pros and cons for renting include:
- Pros: When you rent from Fabick Cat, you get a machine that’s been well-maintained and is ready to work. You also save the expense of maintenance and free up credit to spend on other costs.
- Cons: Renting is convenient and affordable but gives you nothing in return for your investment. Optional rent-to-own plans may allow you to put a portion of your fees toward a down payment, but you’ll still end up sinking money into equipment you don’t own outright.
When it comes to your fleet and your financials, no one option is best. Buying new, buying used and renting all have their pros and cons. Sit down with a Fabick Cat representative today and let us go over your options with you in detail.