Choosing between a used or new excavator can be a pivotal decision for your business. Factors like cost, technology, depreciation, and project needs should be carefully considered to make the right investment.
Avantages de l’achat d’une excavatrice d’occasion
Économies de coûts :
Purchasing a used excavator can significantly reduce upfront costs compared to buying new. This allows businesses to allocate resources to other areas, potentially expanding project capacity and reach.
Used excavators cost substantially less than new ones, freeing up funds for other crucial business expenses. This makes them an attractive option for budget-conscious buyers.
For companies looking to scale quickly, investing in used machinery can help build a fleet without overwhelming initial costs. Many used machines also come with upgraded features or previous owner-added attachments, enhancing functionality without extra expenses.
Lower depreciation:
New excavators depreciate quickly in the first few years, used excavators hold their value longer.
Used equipment depreciates at a slower rate, helping maintain higher resale value over time. This makes used excavators a more stable investment.
Depreciation is important to your financial stability. A used excavator that depreciates more slowly means that you can sell it for a higher price relative to what you paid for it, providing more financial leverage.
Disponibilité immédiate :
Used excavators are typically available immediately, avoiding manufacturing delays common with new orders.
Immediate availability of used excavators minimizes lead times, enabling projects to commence sooner and meet tight deadlines.
New excavator orders often come with long lead times due to manufacturing schedules. By choosing a used excavator, you can eliminate this lead time, which is critical for a project with a tight time frame.
Disadvantages of Buying a Used Excavator
Higher Maintenance Costs:
Used excavators may require more maintenance compared to newer models.
Maintenance and repairs on used excavators can become frequent, impacting project schedules and operating budgets.
Used excavators have potentially seen a lot of previous use. With that amount of work behind them, you have to anticipate potential repairs and factor those into the overall cost.
Limited Warranty:
Used excavators may have less warranty coverage or even none compared to new purchases.
Used excavators often have limited or expired warranties, increasing the financial risk of unplanned repairs.
Some companies sell used equipment that has been refurbished and comes with a short-term warranty. While a nice thought, this warranty won’t cover you like a new warranty will, and the expense of unexpected repair work adds up.
Uncertain History:
The previous maintenance history may not be well-documented, making it difficult to know what kind of work has been done to the machine.
The incomplete maintenance history of used machines is a risk because you don’t know everything that has happened to it.
Most dealers who sell used equipment will inspect it thoroughly, but it is still on you to do your due diligence when making the purchase. Look for documented service records, look for wear and tear, and consider having a professional inspection completed to avoid any unexpected surprises.
Advantages of Buying a New Excavator
Latest Technology:
New excavators come equipped with the latest technology to improve efficiency, productivity, and safety.
New excavators are filled with technology that can help you work more efficiently and safer.
The newest models of excavators offer the latest technology to help you work effectively and safely. Some examples include remote monitoring, GPS tracking, and improved fuel efficiency that can save you a lot of money over the life of the machine.
Lower Initial Maintenance:
When you buy a new excavator, you don’t have to worry about service right away.
New equipment typically doesn’t require much maintenance, especially in the early years.
Many new equipment models also come with service packages or preventative maintenance plans, which can help you keep from having unexpected costs and keep your equipment in top operating condition. This is especially helpful if your company doesn’t have an in-house maintenance team.
Comprehensive Warranty:
New equipment comes with a full warranty and dealer support.
You don’t have to stress about needing to find a lot of money to make repairs to a new machine.
Many manufacturers also offer extended warranty options on new models that cover major components, providing peace of mind that you won’t have to spend much on repairs. As an added bonus, dealer support often includes access to replacement parts, expert technical guidance, and comprehensive service programs.
Disadvantages of Buying a New Excavator
Higher Initial Cost:
New excavators require a significant financial investment.
New excavators cost a lot of money, and that can be a challenge for some companies.
Buying new equipment means committing a big chunk of your budget to their purchase. This can affect your cash flow if you’re not careful. However, many dealers offer financing on new equipment purchases that can help you bear the burden of the major initial investment.
Higher Depreciation:
The value of new excavators drops quickly, with the most significant depreciation occurring in the first three years.
You can lose a lot of money on a new machine, especially in the first few years.
The resale value of new equipment drops significantly in the first few years, based on our conversations with equipment experts. To help combat this rapid depreciation rate, some owners lease new equipment, while others purchase with a buy-back agreement in place.
Lead Time:
New orders could have production delays, depending on the model and manufacturer.
New equipment doesn’t just show up at your door the day after you order it.
If your project is ready to start now, you might find that used equipment is your only option. Depending on the time of year and demand, the lead time on equipment can be surprise.
Factors to Consider: Used vs. New Excavators for Your Business
Budget Considerations:
Think about your upfront cost and consider the total cost of ownership.
Project Requirements:
Consider the type of work you’re doing and what kind of machine you need. Think about the amount of work you will do, the conditions you will be working in, and the type of technology you will need.
Long-Term vs. Short-Term Use:
Are you doing a short-term project or something you won’t be repeating a lot? Maybe you rent or buy used. If you’re buying an excavator and you plan on owning it for a long time, you should buy new.
Financial Considerations
ROI Analysis:
Calculate your return on investment based on how much you’re paying for the machine, how much you’re going to save operating it, and what you believe you can sell it for.
Depreciation Analysis:
Look at the depreciation schedules for a new machine and a used machine, especially if resale value is a concern for you.
Operational and Maintenance Considerations
Maintenance Costs:
Consider what you will have to spend to keep the machine running. Used machines often require more routine maintenance and regular repairs.
Operational Efficiency:
Think about how much more work you can get done with a new machine that has the latest technology. However, make sure that the work you do justifies having that machine.
Market Trends and Resale Value
Resale Value:
What’s the market for that machine going to be when you’re done with it? How are the brand reputation and maintenance history? All those things play into what that machine will be worth when you’re ready to sell it.
Market Trends:
What’s happening in the construction equipment world? Which models are in the highest demand, and what’s happening with technology that could affect the value of the machine down the road?
Conclusion
When you’re deciding between a used or new excavator, you have to think about what you’re trying to do with your business long-term, what kind of projects you’re going to get, and how much money you have to spend. Both options have their advantages, and you need to think through which plan is going to help you achieve your long-term goals.
