With the year 2019 winding down, it might be the right time for you and your company to start looking into new heavy equipment. But you might find yourself puzzled, should I buy a brand new one or go to a heavy equipment trader? This can be a tough choice and you want to be sure to choose wisely. We will go over the pros and cons, and you’ll be informed to make the best decision for you and your company!
Pros For Buying From a Heavy Equipment Trader
Did you know that when you buy cars or any type of vehicle the moment you drive it off the lot they depreciate. It can lose up to 20 to 40 percent of the value you bought it for within the first year. Also, used heavy equipment holds value and does not depreciate as much as a new one! Another pro from buying heavy equipment from an auction is that you can avoid this! This goes hand-hand with the second pro, you can expect a lower cost! In addition to saving money on your equipment, you will on insurance too!
VARIETY. Who does not like variety? That’s right nobody, a heavy equipment trader will have multiple top of the line brands as well as other companies you might not have heard of before. If you are not sure which brand you want to get this is perfect for you because you get to check out every brand!
Cons (Thing to Look Out For)
It’s true it does happen, stolen equipment. Always be sure to check the title and the seller. A lot of times the sellers are selling “as is” which can mean that their equipment could not work. One tip is to bring a mechanic and get the equipment checked out. If you can not bring a mechanic, remember to ask questions and do a visual check! It is similar to buying a car, so be sure to ask the same question you would when purchasing a used car!
Another thing you want to be sure of is how safe the equipment is. If the previous owner did not have regular maintenance this could be a sign that this is not the right purchase for you.
Pros For Buying New Heavy Equipment
Typically, when you buy something new, you don’t expect any problems and if you detect any there is most likely a warranty! You want to take advantage of that. Another thing to note is that it can be a tax advantage. This counts as a capital asset investment which can be a write off.
Cons for Buying Brand New Equipment
New equipment is expensive, if you cannot afford it up front you will have to finance your new equipment. As we said before, this item will quickly depreciate and with financing you will be paying additional fees and interest. This means paying more than it's worth!
Another con is that not all machines that are listed for sale are ready to be sold just yet. And if you want something specific than you have to wait for it to be built. Bottom line is if you need equipment right away, you won’t get it.
So if you want to save money, head to auction and speak to a heavy equipment trader. When you go there, be sure to know what to look for and inspect it before agreeing to buy anything!
At Lyon Auction you can expect quality and respectability! All our equipment is one location, and we make the buying and selling portion easier for both sides. We work with you and want to make this process a headache free one. If you have any questions contact us today!