As the owner of a small construction or demolition company, your biggest concern, aside from your employees, is your equipment investment. Deciding whether to buy new or used equipment can make a huge difference in your bottom line. When you are pondering your options, consider investing in used equipment instead of new machinery.
New equipment will give you all the latest options and technology. It may also last longer and come with long-term warranties. However, you will pay dearly for these advantages. In your business, you may only need good, basic machines without all the razzle dazzle. For instance, when you purchase a bulldozer, you may not mind if it's a little dinged up and has yesterday's innovations. Buying the used model can save you around $50,000, if not more. If you truly do not need anything flashy, then go for the used piece. In business, you need to think about your needs first and your wants later.
If you are hoping to expand your business in the near future, buying used equipment can give you that option. You can more easily purchase or finance several used pieces than you can new ones. More equipment means more jobs which lead to greater expansion. Once you reach a place of greater financial security, you can consider buying new, but even then you may choose to stay with quality used pieces and put the savings to work elsewhere.
When buying used equipment, make certain that you have the machine evaluated by a mechanic to see that it operates properly and is in good overall condition. You can make your life easier by purchasing popular models whose parts are easy to find. Also, with more popular models, you can more easily get advice and instruction on any issues that may arise. Carefully check out the sales contract to see what type of warranty the seller is offering and to see if you have any recourse if the machinery fails you in the next 30 to 60 days.
For many small construction or demolition company owners, buying used equipment makes more sense than investing in new machines. The jobs you take probably do not require anything fancy, so paying for all the bells and whistles on new equipment is not necessary or prudent. Look for used heavy construction equipment for sale in your area that best suits your machinery needs and makes the most of your savings.