As we head deeper into the summer months, more and more construction companies will be starting new projects. With construction companies working on more projects, more heavy equipment may be needed. When purchasing heavy equipment, construction companies may be challenged in deciding whether to buy new or used machinery. This can be a difficult choice because every company wants to make sure that they are getting the most out of their investment.
At Lyon Auction, we offer many construction equipment auctions across the country to help construction companies and independent contractors purchase quality used equipment at an affordable price. Below, we discuss the pros and cons of purchasing both new and used equipment, and which one is right for you.
Pros of buying used equipment
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. Used heavy equipment does not depreciate at such a quick rate, which is why many view equipment auctions as very beneficial.
Another advantage of purchasing used equipment is that you won’t be paying as much! While the equipment may be used, it doesn’t necessarily mean it’s worse than newer models.
Lastly, variety. Who does not like variety? At our equipment auctions, you will find 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 the perfect opportunity to check out every brand!
Cons of buying used equipment
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!
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. This could also lead to you paying for future repairs, which could end up costing you more than buying new!
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 then you have to wait for it to be built.
Before deciding whether to purchase new or used, it’s essential that you understand what you are needing this equipment for. The types of jobs and areas of work could have a great impact on whether you should buy new or used equipment. If you are looking to save money, purchasing used equipment at one of our many construction equipment auctions is a great way to do so!
At Lyon Auction, we are dedicated to providing our customers with quality equipment at each of our construction equipment auctions. To learn more about what we do, or view our upcoming auctions, visit our website today!