Heavy construction equipment does not last forever, sadly. And while construction companies try to spend money wisely, it can sometimes be difficult when having to constantly purchase new equipment. The good news for construction companies is that there is plenty of used equipment for sale at a very reasonable price.
Purchasing used equipment at construction equipment auctions have far more advantages than just being lower in price. As a leader in used construction equipment auctions, we have detailed why you should consider choosing used equipment over new!
Purchase at a lower price
The first, and obvious, reason why you should consider purchasing used equipment is because it’s usually far less expensive to buy. In recent years, new equipment has become more and more expensive. Taxes are becoming higher, and newer equipment tends to come with more amenities that are not necessarily needed to get jobs done. By purchasing quality used equipment, you are able to save thousands of dollars.
Avoid initial depreciation of equipment
Heavy equipment begins to depreciate in value the minute you take it out of the dealer’s lot. This depreciation continues to happen quickly through your first year of ownership, then begins to start slowing down. By choosing to purchase used equipment, you avoid taking a hard hit on the initial depreciation. Used equipment comes with a decrepitated value already, which makes the investment worth it.
Used equipment can also hold its value for a long period of time if it’s well maintained. If you ever decide to sell your equipment, you actually may be able to get close to what you paid for it, depending on market demand and how well you have maintained your equipment.
Major equipment manufacturers usually roll out with new equipment lines every couple of years or so, which narrows down your options when you decide to buy new. When shopping for preowned equipment, you are able to pick between a large variety of brands and models of different years and generations. This allows you to find equipment that is perfect for your company and jobs, rather than paying more for something you don’t necessarily need. This can also lead to an easy transition, as you are able to purchase equipment with the technology your operators are used to, saving you time and money on training!
Lower insurance costs
Lastly, insurance on your equipment is something that you may not normally think about, however, it’s something everyone has to pay. New equipment insurance assesses the value of your equipment as new, even if your machinery are already experiencing depreciation. Used equipment on the other hand will have an adjusted premium, which ultimately saves you money on your equipment insurance!
When you need new equipment for your company, purchasing new may be your initial thought. However, buying used heavy equipment offers many advantages as well. Keeps these benefits in mind when looking to add equipment to your company.
At Lyon Auction, we offer many construction equipment auctions all across the country. To learn about our upcoming auctions, visit our website today