When it’s time to purchase heavy equipment for your company, you’ll find various used and new machinery to rent or purchase. It can feel overwhelming trying to decide on the most cost-effective product that will meet your needs. While new equipment has its advantages, you’ll find plenty of benefits of buying or renting pre-owned machinery that make it the better investment for you in the long run.
Here are just a few of the benefits of purchasing used equipment for your business.
1. Cost Savings
The upfront investment of new equipment, like a specialty forklift, can significantly impact your company’s cash flow. You can appreciate considerable cost savings by purchasing or renting used equipment. And when you purchase or rent from a reputable dealer, it means your machinery has been well maintained, so you’ll still get several years of reliable service from it.
Here are a few ways you can save by opting for used equipment:
- Lower upfront cost: You’ll discover plenty of used equipment options available at a much lower upfront cost than buying a new machine outright.
- Retains its value: Used equipment holds its value well after the first year, allowing you to use it for specialty jobs before selling and recouping a good percentage of those initial costs.
- Pays for itself: While purchasing equipment represents an expense to your business, it will also help pay for itself with increased revenue. The more equipment on your fleet, the more jobs you can take on.
- Tax deductions: You can also deduct expenses from used equipment on the income tax year, such as interest on financing costs, amortization and maintenance.
Buying used equipment means greater cost savings, which you might then use toward attachments, maintenance costs or even toward the cost of buying another piece of equipment.
2. Upgraded Features
If you were to list the features you desire in equipment, you can likely find them on newer used models. As long as you purchase used equipment that wasn’t manufactured too long ago, you can access the same technology you would expect from a newer machine. Consider your existing machinery’s features and note that used equipment will often be similar to it in that same model on a year-by-year basis. Expect the same functions of a newer model at a lower price point when you purchase the used version from the industry’s most trusted manufacturers.
3. Avoid Depreciation
Like a new truck or car, construction equipment begins depreciating as soon as you take it off the dealer’s lot. Within the first year of purchase, you can expect double-digit depreciation that slows within the second and third years of ownership within the first year of purchase. Choosing used equipment means avoiding the initial depreciation, which lets you focus on building your fleet.
You can turn your attention toward projects you need to complete rather than owing more on new equipment than the initial cost due to depreciation. Used construction equipment will depreciate much slower than new heavy equipment while holding its value longer. Keeping up with regular maintenance means you can even sell that equipment later or trade it in for the same price you might’ve purchased it at when you’re ready for an upgrade — a benefit that only comes with purchasing used equipment.
4. More Availability
Buying new equipment can mean placing an order and waiting for that machinery to be made for you. While there are benefits of purchasing new, you may experience possible lag time. Used equipment is always available and in stock at your nearby dealer. All you need is to make arrangements to purchase it and have it delivered directly to a job site so you can start working with it immediately.
You can review available inventory online at your convenience, learn about available models you’re interested in and determine what you want before even visiting the lot. Your used construction equipment dealer can provide you with all the information you need to know about each item in stock, including:
- Manufacturer
- Model or serial number
- Year
- Hours of use
- Asking price
The convenience of shopping for used equipment also means knowing where and how the equipment was previously used, which can give you an idea of the conditions it’s been exposed to. For example, you can determine whether a specific product like a forklift was used in wet, dry or warm conditions, which can help you gauge how well the machine would perform if maintained and stored properly between jobs.
5. Lower Insurance Costs
The cost of insuring used equipment is often lower than insuring a similar model of new equipment. Insurance companies typically base their premiums on the equipment’s replacement cost. In the case of used construction equipment like a forklift, the overall average cost of coverage will be less expensive since it has a lower replacement cost compared to new equipment.
Businesses that are just starting up can especially benefit from this, as you’ll need to factor insurance into your overall cost. Depending on the amount of insurance you need and the value of your equipment, insurance costs can run pretty high. The price can be much lower when you opt for used equipment. To get an accurate estimate, you’ll want to contact an insurance agent or broker to assess your unique needs and provide you with a quote.
6. Promote Sustainability
Sustainability continues to gain relevance as time goes on, especially in the construction industry. Buying used means a manufacturer doesn’t need to produce a new machine, wasting resources and increasing your company’s carbon footprint. The used market limits the number of machines manufactured each year, reducing the level of steel and iron consumed. Ultimately, this helps reduce industrial waste and emissions overall, contributing to a greener planet. Buy used and get equipment that performs as well as newer models while saving money and protecting the environment.
Rent or Purchase Used Forklifts at Medley
From cost savings and promoting sustainability to the convenience of readily available products, there are so many used equipment benefits for your business. Whether you’re searching for used or new machines, Medley has what you need to get the job done right. Our extensive inventory is well maintained, meaning you get access to high-quality used equipment to handle your material handling needs.
You’ll appreciate a team of expert technicians who can provide service every step of the way, helping you achieve minimal downtime. We strive to give you the best possible customer experience and can answer any question, anytime. Contact us today for assistance from our expert team.