How to decide between a used excavator and a new excavator?

As a construction business owner or as a heavy machinery buyer you may be confused about which excavator you should go for. Should you choose to invest in a used excavator or a new one?

When you compare both of them you will see significant differences. Both of these machinery types offer different benefits for all types of organizations. Moreover, the purchasing option depends on a variety of factors such as goals, financial situation and goals.

What are the pros and cons of buying a new excavator?

1.   Dependability (Pros):-  New equipment is known for its dependability, since they aren’t previously used and sold they would be available in prime conditions. Moreover, you can expect fewer maintenance problems during long-term use which also means less investment in repairs. Additionally, Operating expenses are also less of a burden as the equipment runs errorless.
2.   Cost (Cons):- The most common reason behind people not choosing to buy new equipment is the initial investment. This may pose a problem for organizations as investing in new machinery becomes an expensive process. Thus, smaller organizations may not be able to afford new machinery.
3.   Warranty (Pros): – New equipment guarantees a strong warranty with it. The warranty period usually lasts for at least a year after the purchase.  Thus, as a machinery owner, you won’t be facing any surprise expensive repairs for a prolonged time. You should also make sure to be informed about the warranty period of your machinery as the warranty period may vary from one manufacturer to another.
4.   Depreciation (Cons): – The value of a new machine reduces significantly as you start using it. It is similar to buying a new car and selling it later. Thus, the value of your new machine depreciates rapidly within the first few years. Once the depreciation slows down it may provide you with good value.
5.   Technology (Pros): – With new excavators, you can carry out your efforts with the help of new technology. The heavy equipment industry evolves every year with newer models coming in quite frequently thus if you are planning to use these advantages of technology you can choose to invest in a new excavator.

What are the pros and cons of buying an old excavator?

1.   Cost Effective (Pros): – Used equipment is always less expensive than new machinery. This is the perfect option for organizations that do not have a lot of free capital to spend on resources.

The capital saved from buying used excavators can be redirected to grow your business or to maintain and repair the machinery later. However, you should be aware that used excavators do require a lot of maintenance and these should be considered while you are calculating your costs.

2.   Seller Research (Cons): – You will have to work harder to look for a reliable seller. Thorough research should be carried out to verify whether the information provided by the seller is authentic. Moreover, used machinery does not come with certifications or inspections. Thus, you won’t be aware of how well the machinery was treated.
3.   Depreciation (Pros):- The price value of used equipment reduces significantly within the first couple of years of its use. In certain instances, you may find equipment that is practically new and isn’t used much. Thus, you will be able to receive a good value for used excavators.
4.   Warranty (Cons):-When you are planning to invest in used machinery you will notice that a lot of private sellers do not offer you any kind of warranty. Thus, any repairs or maintenance effort can be significant. In certain cases, repairing used excavators can cost more than a newer model costs. You can deal with this issue by choosing to buy from private buyers and dealers who offer your warranty.
5.   Selection (Pros):- Used machinery can span several manufacturing years and provide you with access to different models that are slightly behind the latest models. Moreover, you can always choose to invest in used machinery that was manufactured in recent years. This way you can use old machinery while making use of new features and functionalities.

Thus, by knowing the core differences between the features offered by new excavators and used excavators, you can make the right choice.