When to Buy New and When to Buy Used EquipmentApril 9, 2015
Get The Job Done With the Right Equipment
Whether you buy it or rent it, many construction and landscaping companies have to spend considerable amounts of money on heavy machinery. Because you can’t get the job done without the right equipment, these costs are essentially unavoidable.
Assuming the volume of work you have is steady, building your own fleet is one easy way to save money on the costs associated with construction equipment. In addition to preventing you from ever having to write another equipment rental check again, you’re also adding assets to your business. The money you spend doesn’t disappear overnight.
Cat® equipment gets the job done the right way. Buying it is a major investment, so if you’ve made the decision to start putting your own fleet together, you need to consider whether new or used machinery makes the most sense for your business.
Having a hard time deciding? We thought we’d make it easy for you.
If you’re considering buying new equipment, you’ll:
- Have your pick of the lot — Instead of being forced to choose from whichever Cat machines a dealer has on hand, you can get the exact equipment you want. You won’t have to settle for the second best. Instead, you can be sure you’re using the machines that will perform perfectly.
- Incur fewer expenses — Newer machines are less likely to break down. Once you add new Cat equipment to your fleet, you won’t have to worry as much about incurring maintenance-related expenses. If something malfunctions, your new equipment is most likely under warranty.
- Have higher resale value — You don’t have to hang on to your machines for their entire lives. If you take care of them, you can resell your machines in the future and get a higher resale value. Used equipment may have virtually no resale value down the road.
While there are plenty of benefits to buying new machines, used equipment offers some distinct advantages:
- You’ll save money — In the world of heavy construction equipment, you can often find a quality used machine that will seem so reliable that you’ll wonder why you ever considered buying a new one in the first place.
- It’s easier to expand your fleet — Since used machines cost less money, you’ll have a substantially easier time adding more of them to your fleet. When you decide to buy used construction equipment, you’ll no longer have to settle for using a less than optimal machine for a specific application.
- You can take on more jobs — Now that your fleet has grown, you’re able to take on more work. As long as your bottom line is growing, that’s a great thing.
When it comes to new and used equipment, there’s no right or wrong answer — just because it makes sense for one company to buy new Cat equipment doesn’t mean it will for another. Weigh your options accordingly, and if you have any questions, contact Fabick Cat today!