Top 3 Advantages of Buying used construction machinery and equipment

When you’re operating a construction business, you require to determine where to expend your capital wisely. When you require heavy construction equipment for a job, you can ever buy new, but there are times when it can make sense for your bottom line to invest in used equipment. There are furthermore several advantages to buying previously-owned machinery from an authorized dealer. 

BENEFITS OF BUYING USED CONSTRUCTION EQUIPMENT 

It may be the first instinct to buy new equipment when you require it to finalize a job, but there are many benefits to buying used construction machinery and equipment as well. Let’s take a glance:-

1. Purchase Equipment at a Lower Cost

Buying new equipment is an investment that can have an important consequence on your company’s cash flow. Nonetheless, you can buy quality used equipment at a much lower cost. It’s feasible to save thousands on the cost of purchasing new machinery by selecting this option.

The price of new construction machinery has increased over the past several years. It’s ever nice to think about purchasing something brand new, but you don’t require offering up quality just because the machinery has been formerly owned. If the equipment has been well retained, you can still get several years of reliable service from it.

2. Avoid Initial Depreciation on Equipment

Construction equipment starts to devalue as soon as you take it off a dealer’s lot in an identical manner as your truck or car. In the first 12 months after investment, double-digit depreciation is ordinary, and then it slows down in the second, third, and fourth years of ownership. By selecting to purchase a used piece of equipment, you are bypassing taking the “hit” on the initial depreciation.

No one ever wants to be underwater on a car or truck loan, a mortgage, or financing for heavy equipment if they ever had to deem selling the acquisition after the first year or so.

By selecting to purchase a piece of used equipment, you avoid the situation with the special asset and can focus on building your fleet. You can furthermore turn your attention to the projects you have secured for completion.

3. Have Lower Costs of Ownership

Since used equipment holds its value relatively well after the first 12 months, you can purchase it for specialty jobs, and then sell it and recoup an amount that reflects a good ratio of what you paid for it. In the meantime, you can remove expenditures such as amortization, interest on financing expenditures, maintenance, insurance, etc. on your income tax return starting in the year you purchased the equipment.

The equipment represents expenditure to your business, but it furthermore will enable it to pay for itself with boosted revenue. 

Summary

The more equipment you have available in your fleet, the bigger the jobs you will be able to take on. You’ll furthermore have equipment available to send your employees out to more than one job site at the exact time. When you can develop an income from more than one project simultaneously, you can truly reap the advantage of having the used equipment available to you. It will permit your income to improve exponentially.

Resource box- Purchasing used heavy construction equipment from TTL Group of Companies means paying less in sales tax and a lower initial investment price. You could decide to use the savings toward attachments, maintenance costs for your fleet, or the expense of purchasing a second piece of equipment.