The decision between new and used heavy equipment is based on your specific situation and what is best for your organization. This encompasses both short- and long-term inventory requirements for equipment. Each purchasing option has advantages and disadvantages.
Understanding the advantages and disadvantages of each option can be quite beneficial in providing you with accurate and practical information. After all, we understand how difficult it is to decide, so we stock both new and used Cat equipment. But, finally, it’s your decision, and we want to make sure you’re making the best one possible.
Advantages of Purchasing New Heavy Equipment
When money is no object in an ideal world, you would almost certainly purchase brand-new heavy construction or mining equipment. You consider your company’s image and the professional impression you make by operating a new gleaming and trouble-free fleet. You’d have access to the most up-to-date technologies and the “new equipment smell.”
Here are some more reasons to buy new equipment:
New machines are significantly less likely to cause you problems when it comes to operation. Routine maintenance expenditures are an inevitable aspect of owning heavy equipment. Still, your repair costs will be far lower, and for a much longer period of time, if you purchase new heavy equipment. Purchasing new machinery makes sense to maximize output while avoiding the risk of failure and costly repairs. A fresh machine will start in the morning and work without complaining about the day’s rest. You can also rely on a warranty backup if something goes wrong unexpectedly.
While all new machines come with a warranty, no other manufacturers provide Cat’s complete and comprehensive warranty package. However, you can rest easy knowing that your Cat OEM Solutions Warranty is the finest in the heavy equipment business.
Major technology developments in heavy equipment engineering and design occur regularly. You will receive the most up-to-date high-tech developments when you purchase new equipment. Unfortunately, used machinery is rarely equipped with “latest and best” features as new machinery. Compare today’s new Cat equipment’s latest safety and comfort features, including telehandlers, wheel loaders, and used machines only a few years old. There is no substitute for new equipment’s superior technology.
You get exactly what you want when you buy modern heavy construction equipment. In addition, heavy equipment design and manufacturing skills are always improving. Cat offers a diverse range of equipment, from little compact track loaders to massive scrapers and off-highway trucks.
Advantages in terms of taxes: Purchasing new machinery is a capital asset purchase. As a result, the IRS permits you to deduct or write off certain sums related to the purchase price of new equipment. As a result, your machinery becomes a corporate asset, allowing you to take advantage of tax benefits. These tax savings could be a significant capital offset, making buying new fully worthwhile. Contact your accountant for assistance in analyzing the potential tax benefits.
Advantages of Purchasing Used Heavy Equipment
America’s secondhand heavy equipment market is alive due to a large inventory of high-quality machinery from leading manufacturers like Cat. Even if you prefer new heavy construction or mining equipment, there are some advantages to purchasing secondhand that you cannot overlook. There are many great bargains to be found in the used Cat market. Here are some of the most compelling reasons to consider purchasing old heavy equipment:
Lower upfront costs:
Buying used construction or mining equipment is less expensive than buying new ones. In many circumstances, secondhand heavy equipment will generate the same revenue for a fraction of the cost of new equipment. As a result, you could be better off putting the difference aside and reinvesting it elsewhere in your company.
Depreciation is not taken into account: Depreciation on new equipment can be a big pain. Depreciation is unavoidable, but someone else has already paid the high original cost if you buy a used computer. Whether you’re looking for a little skid steer or a large excavator, secondhand heavy equipment will not depreciate as quickly as new equipment, especially if you maintain it properly.
Because used equipment does not degrade as quickly as new equipment, it retains its value, especially provided regular maintenance is performed. When it’s time to upgrade, you’ll have a far better chance of recouping your investment by selling secondhand equipment for close to what you spent.
A large inventory of used heavy equipment is available nationwide, ranging from boom lifts and backhoes to industrial loaders and compactors. Thousands of used machines are available, ranging from older machines that can accomplish basic tasks to last year’s models that are likely as excellent as new at a fraction of the price. You’ll have a good chance of finding what you need if you shop at the used machine market. Flexibility can differentiate putting a used machine to work immediately versus waiting for the inflexible luxury of new.
Reduced insurance premiums:
This is a benefit of old equipment that you may not have considered. Your insurance premiums will decrease because the value of your heavy equipment will be lower with a used machine. In addition, even if the machine suffers typical depreciation, new equipment insurance will assess replacement cost at the new machine value. As a result, you’ll almost certainly overpay for insurance with a new machine, whereas a used model would have its premium lowered.