Used equipment allows contractors to meet job contracts quickly without waiting on specialized machinery delivery, while its depreciation is limited compared to new.
When purchasing equipment, try to find a dealer with an extensive inventory. Make sure they offer inspection services if possible.
1. Resale Value
An initial advantage of purchasing used equipment is the lower initial sticker price. Most equipment experiences significant depreciation in its first couple years of service; buying pre-owned enables faster return on investment and allows for a quicker payback period.
Customers purchasing from private parties or dealers with repossessed equipment should conduct a detailed inspection, price research and check to make sure the seller holds clear titles prior to making any decisions.
Dealers frequently compare pieces of equipment with similar models on the market to determine its fair market value. Proper maintenance and documentation can boost resale values; additionally, supply and demand play an influential role.
2. Maintenance Costs
Maintenance costs for any business represent expenses it incurs to maintain facilities, properties and vehicles owned by it. Monitorig these expenses can help companies better budget for future needs while pinpointing opportunities to cut expenses.
Used equipment typically has higher maintenance costs than newer machines due to frequent repairs and part replacement needs associated with older machinery.
Purchase of used equipment with warranties can help to significantly lower costs, though it is essential that a reputable seller will pass along that warranty after sale. Warranties also give peace of mind for large trucks and trailers which could reduce downtime during maintenance issues.
Machine downtime costs companies lost revenue, frustrated employees and an impaired reputation. While some amount of unplanned downtime is unavoidable, steps can be taken to limit unscheduled downtime events.
Unplanned downtime refers to any disruptions in production not caused by scheduled maintenance or product changeover. Unexpected stops reduce efficiency by eating into maximized hours of work and revenue potential of the business.
When purchasing used equipment, always ensure it has been refurbished to OEM specifications and includes any current technology that could improve uptime. Asking these questions will help ensure you’re buying quality machinery that will continue performing well over time – not to mention saving money by purchasing second-hand rather than new! Buying second-hand saves upfront cost while lowering total ownership and maintenance expenses significantly.
Before investing your company’s capital in equipment, it is advisable to have it examined by an expert. Any miscommunication regarding damage, required repairs and impending machine failure could prove costly for any business.
If purchasing used equipment, make sure it has been refurbished to OEM specifications and request documentation that verifies this.
Newer machinery may be more fuel-efficient and thus beneficial to both the environment and wallet, while at the same time decreasing downtime due to reduced maintenance issues and repairs. New technology also makes operating the machines simpler, meaning less likely breakdowns or operating issues are encountered while simultaneously increasing productivity and safety in hazardous environments.
Used equipment warranty programs provide peace of mind to buyers and are an attractive selling point for authorized dealers or auction firms that have their own warranty programs.
However, it is essential to understand what warranties do and do not cover. For instance, some warranties won’t cover planned maintenance like fluid changes while others won’t cover repairs on parts that will inevitably wear out – like windshield wipers.
Before purchasing any warranty program, be sure to inquire as to its scope and any deductibles involved. It is also a wise move to check that the seller can provide sufficient documentation of their machine as well as provide clear title documentation.