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Buying new or used equipment. Today's blog breaks it down.

New or Used?

Some easy ways to answer a hard equipment question.

When you need to increase your fleet, you may have a better option than buying new. Purchasing used machinery isn’t only a great idea for the small business owner who doesn’t have the capital to purchase new; there are advantages for every business owner that are worth considering. If you are weighing the advantages and disadvantages of a used equipment purchase, just be sure you can check all the necessary boxes and have genuine savings in the end.

CONDITION – Since there will always be some unknowns when buying used construction equipment, it’s critical that you ask as many questions as possible. (a) Can the owner verify the operational hours on the equipment? (b) How about a complete service history? (c) Will there be any type of warranty on your used equipment? The answers to these questions (or lack of answers) may quickly determine your decision. If you’re still leaning toward used, have a third party do a thorough inspection.

PRICE – Determine that the purchase price really is lower than buying new. Just like with a car, equipment dealers have some “wiggle room”. This increases if you’re buying multiple machines, so make sure you really know the rock-bottom costs you are comparing. Another factor in determining price is interest rates. They must be factored in when you are comparing prices of new and used alike.

AVAILABILITY – Factories typically have a substantial production lead time. Once you place an order for a new machine it may be months before your equipment hits the job site. In fact, you may need to rent equipment temporarily until yours arrives. In an industry where time equals money, this is a necessary consideration. If you buy used, it’s possible to have your new skid steer lifting, excavator digging, and dozer moving within a few days.

VALUE – New heavy-duty equipment depreciates the second it leads the dealership. This will hit hardest when it’s time to sell. Used equipment doesn’t carry the same depreciation, so the buying and selling price point should be much less substantial.

TECHNOLOGY – There are substantial technological advancements being made each year in the heavy equipment industry. If these are critical to your work, get creative and take the financial plunge…new will be your best decision in the long run.

When all things are considered, you may conclude that it’s best for your business to buy new. But don’t rule out used until all things truly are considered! You just may have a better pre-owned option. Call your CMI-Case dealer today to find out more.

Knoxville | 865.982.6452
Tri-Cites | 423.975.9111

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