Heavy machinery is essential for businesses in construction, landscaping, agriculture, and a wide range of other industries. But one big question often comes up: should you invest in brand-new equipment, or consider buying used?
For many businesses, choosing a used excavator makes solid financial sense. You get the tools you need without the steep price tag that comes with brand-new machinery, and if you know what to look for, you can find a machine that’s reliable, efficient, and ready to go to work. I’ll walk you through why buying used can be a smart move and how to make sure you’re picking the right machine for the job.
Benefits of Buying Used Equipment
When browsing online, you’ll notice that there are plenty of great deals, both on new and used excavators. The market offers equipment from well-known, trusted brands like Caterpillar, Komatsu, Hitachi, Volvo, and Liebherr, all of which are known for their durability and high performance. Even when buying used, you can often find models that still have plenty of life left in them, making it a smart option if you’re looking to save money without sacrificing quality. These machines are built to handle tough jobs and demanding conditions, so a used model can still provide the power and reliability you need at a fraction of the cost of a brand-new one.
When it comes to adding heavy machinery to your business, buying used equipment is a smart move for a variety of reasons. Whether you’re expanding your fleet or looking to take on larger projects, purchasing second-hand construction machinery can offer significant advantages over buying new. Here are a few reasons why you should consider the used market before making your next big purchase.
More Affordable
One of the biggest benefits of buying used equipment is the cost savings. New machinery depreciates rapidly, often losing 20 to 40% of its value in the first few years alone. However, construction equipment is built to last, often up to 10 to 15 years, so even a used model can provide years of reliable service. By purchasing second-hand, you can get more bang for your buck and avoid the steep initial depreciation hit.
Faster Return on Investment
With a used excavator in Australia, you’re not dealing with the same depreciation curve that comes with new equipment. The initial investment is lower, meaning you can start seeing returns on your purchase sooner. Since you’re paying a fraction of the price, you’ll reach your break-even point faster and be on the road to profitability without waiting as long.
Access to More Features
Buying used excavators might give you access to features that would otherwise be out of reach if you were only looking at new machines. As newer models come with advanced technology and features, purchasing a used machine can allow you to get high-end equipment at a lower price point. These features could help improve your efficiency, broaden your service offerings, and even increase your capacity to take on new types of work.
Flexibility for Your Business
Choosing used equipment can give you more financial flexibility. Rather than tying up a large sum of money in a brand-new asset, you can invest in second-hand machinery and still have funds available to hire more staff or take on additional projects. This flexibility helps you grow your business without overextending financially.
Better for the Environment
By buying used construction equipment, you extend the lifecycle of these machines, which is great for the planet. Rather than sending perfectly functional equipment to the scrap heap, you help to reduce waste and minimise the need for new raw materials. Purchasing second-hand supports the circular economy, where resources are reused and repurposed instead of discarded.
Quicker Availability
The waiting period is one of the most frustrating things about buying new machines. Depending on the type of machinery, lead times can stretch for months. This delays your ability to take on new projects. With used machinery, however, you can often find equipment that’s available for purchase and pick-up much faster. Whether you’re buying at an auction or through a dealer, used machines can be ready for use within a matter of days rather than weeks or months.
Lower Insurance Costs
Since used machinery comes with lower prices compared to new equipment, you’ll also save money on insurance premiums. New machines tend to have higher insurance rates because they’re worth more, but with used equipment, you’ll pay less to insure them. Additionally, construction sites are frequent targets for theft, and by buying used equipment, you reduce the overall value of the machinery on-site, which lowers your risk and helps keep your insurance premiums down.
Buying Considerations
How do you choose an excavator? There are a few key things you’ll want to consider to find the right machine for your needs. Here are some important factors to think about:
- Size: Whether you’re after a compact or a large machine, consider the work you’ll be doing. Smaller machines are easier to move around and store, while bigger ones pack more power and durability;
- Type of work: Think about what tasks you’ll be tackling. Different models are suited to different jobs, so choose the right type for your specific needs;
- Tracks or wheels: Tracked machines are great for tough terrains, providing stability, while wheeled models are better for standard conditions and are easier on delicate surfaces;
- Attachments: You’ll need to check what attachments are compatible with your machine, like a grapple, auger, or something else, to ensure they’ll work together seamlessly;
- Storage and transport: Don’t forget the logistics of moving and storing your machinery. Larger machines can be tricky and costly to transport.
Inspection Tips
If you plan to buy excavators that have been used, it’s important to perform a thorough inspection. Here’s a quick guide to things you should check before sealing the deal:
- External condition: Start by looking at the machine’s overall appearance. While minor cosmetic flaws like scratches are normal, make sure there’s no significant damage to the frame or undercarriage. Check for rust, dents, or any signs of misuse, especially in areas like hinges or welded parts;
- Internal Components: Once you’re happy with the exterior, it’s time to dig deeper. Look at the wiring, check the fuel system for leaks or unusual smells, and ensure the battery is in good condition. Remember to inspect the cab for comfort and visibility;
- Performance: Take the excavator for a spin. Start it up, listen for any odd sounds, and test the controls to make sure everything works smoothly. Pay attention to how the machine moves, as this will help you gauge its overall condition;
- Service and support: Finally, get the full story on the machine’s history and service records. Ask about any repairs, and ensure the seller offers a warranty or after-sales support. Knowing this will give you peace of mind for the long run.
