- January 15, 2024
- By: Tway
- in: Blog
Buying construction equipment requires a significant amount of capital. So it is worth considering other options that would help you have a successful construction project.
One option is to buy used heavy equipments.
Here are 5 reasons to convince you:
Lower upfront cost
This is an obvious reason. Used heavy equipment drops its value by 20 to 40 percent.
Used heavy equipment is just as effective as a new one at a fraction of the cost.
The key here is to look for second-hand equipment that’s in good condition. It also helps if you could source it locally.
This will save you shipping costs, exchange rates and heavy import taxes.
Construction capital goes further
Because you cut costs with your heavy equipment purchase, you can allocate your construction capital to other expenses related to your project.
You may even be able to buy more used machines for the price of one new equipment. What does it mean for your construction project? You can get more work done and save time.
Plus, think about insurance costs. Because your used heavy equipment’s value will be lower, you’re going to pay lower insurance premiums.
Used equipment doesn’t depreciate as quickly as new equipment especially with regular maintenance.
The demand for used heavy equipment is high. Therefore, if you’d need to resell your heavy equipment, its resale value is generally stable.
Also, do you know that during times of economic stress, sales of used construction equipment increase? What does it mean for you? A greater chance of selling your used equipment at a price that’s close to what you paid for. Now, that’s an excellent return on your investment.
Greater selection and better flexibility
There is a wide range of used heavy equipment types, models, manufacturers and prices to choose from.
In terms of flexibility, you can buy equipment to do one job and then sell it. You save on storage, insurance and maintenance costs.
Also, in the used equipment market, you can get it immediately when you need it. You do not have to wait months for your machine to be delivered or even built.
New equipment depreciates quickly after purchase. Your used heavy equipment won’t depreciate at a rate anywhere near a new equipment.
There is no escaping depreciation. But used heavy equipment has already gone through its depreciation period. So, it is priced at a rate that is almost matched by its resale value.
With these 5 reasons, you should now be able to decide to buy used heavy equipment for your construction project.
Let Jagan Enterprises help you find the best used heavy equipment. We have a wide range of used backhoes, bulldozers, and forklifts.
We value your business so we only have the best-priced and high-quality product for you.
Jagan Enterprises is a premier used heavy equipment and heavy equipment and parts supplier in the Philippines. (Backhoe, Forklift, Bulldozer, etc.)
We take pride in our excellent customer service that guarantees flawless transactions with you, our clients.