1. Lower Initial Cost
Purchasing used equipment is generally more cost-effective than buying new machines, as most used machines deliver the same performance for a fraction of the cost. Not only are you spending less money upfront between the equipment’s purchase price and taxes, but a smaller loan means lower monthly payments. This allows you to grow your fleet faster or reallocate the money you save into other areas of your business.
2. Avoid Initial Depreciation
When purchasing new equipment from a dealer, you pay the retail price: the amount a dealer is willing to sell the equipment for. Once the machine leaves the lot, it’s instantly worth its wholesale price: the amount a dealer is willing to buy back the equipment for. Buying used helps you avoid this initial drop in value, significantly decreasing the machine's total depreciation while in your possession.
3. Hold Value Longer
Equipment depreciation doesn’t stop when they leave the dealer’s lot. In fact, these machines continue to depreciate throughout their lifespan, but at a much slower rate. This means that used equipment holds its value longer than new machines, since most depreciation occurs within the first year of new machine ownership. Carefully maintaining your equipment inside and out will help you recoup your investment at the time of resale.
4. Inventory Readily Available
It’s widely known that a dealer’s new inventory is entirely reliant on equipment availability from manufacturers. With the current trend of supply chain issues, labor shortages, and shipping delays, you could be waiting weeks, if not months, for new equipment to arrive. Why wait for uncertain lead times? Used machines are available immediately, allowing you to purchase a machine, load it up, and deliver it to your jobsite all in the same day. A dealer’s selection of used equipment typically has even more options to choose from than buying new, including different makes, models, features, and more, so you can find the equipment you need when you need it.
5. Lower Insurance Costs
New equipment costs more to insure because the amount it would take to replace the machinery is significantly higher than the cost to replace an older lift. Coincidentally, most insurance companies offer reduced premium rates to insure older equipment that costs less to replace. Purchasing used equipment allows you to be insured and complete jobs at a lower monthly cost than buying new.