As a business owner, checking new and used heavy equipment is beneficial to building a reliable fleet. New construction machines are typically dependable, require fewer repairs and offer the latest features. You can also find used Cat® equipment that performs well, fits your budget and addresses your operational needs. With good timing and research, you can secure a good deal for used options.
To help you make informed decisions, let’s discuss when to buy used machinery for your business, the main benefits of buying used equipment and crucial factors to consider before purchasing.
The Right Time to Buy Used Construction Equipment
The best time to purchase used heavy equipment depends on different factors such as the machine’s age, how frequently it was used and the market’s seasonal demand for used equipment. Knowing these can help you choose machines with considerable operational life while securing a cost-effective deal.
Equipment Age
Used machines are significantly more affordable than new ones, and buying within the first few years of use can be highly advantageous. For example, if you’re looking for a used wheel dozer, try buying used heavy equipment that’s three to five years old.
More recent machines tend to be especially reliable and can serve you longer. Considering good maintenance and regular wear, you can find one that costs a fraction of the newest model.
Frequency of Use
As a buyer, you generally want a machine that has been gently used and well-maintained. Ask how often the equipment was in operation, including the type of jobs and environment it serviced. This lets you know how tough the projects were and whether the equipment can handle your requirements.
For example, you might need a used backhoe loader for landscaping and roadwork. Consider machines that were previously used for similar applications.
Seasonal Demand
The changing seasons can affect your ability to obtain a good deal on used equipment. Specific machines might be in demand during different periods, which can drive their prices higher.
For example, many buyers might be looking for used skid steer loaders in winter to clear snow. In other cases, there could be more construction projects during summer, resulting in higher demand for used excavators for construction needs.
While you may still get a good deal during peak selling season, you might secure a more affordable deal when fewer industry professionals are looking for the same used equipment. If you can, consider buying a used machine during the off-season.
Key Benefits of Buying Used Heavy Equipment
Investing in used equipment can help reduce costs, especially if you’re starting your company or expanding your operations. Even with sufficient capital, some businesses may buy used equipment to maximize their budget. As practical advice, you should buy used equipment if it adequately satisfies your operational and financial needs.
Here are three main reasons industry professionals opt for used machines:
- Affordability:Â Though a used machine has depreciated, you can own it while it performs well with most of its operational value. A favorable deal allows you to acquire the machine you need at a significantly lower price. Many business owners consider this option because it helps them save. With the remaining capital after buying a used machine, you can finance other important operational expenses, such as hiring more workers or adding more machines to your fleet.
- Availability: If you need heavy machinery that’s available immediately, the used equipment market can accommodate your timeline. New machines may take a while to manufacture, which can result in operational delays. You can use the machine sooner when you work with a reliable dealer. In other cases, you might be looking for a specific model that’s unavailable in the latest equipment roster. You’ll likely find more used options.
- Broad variety: The used equipment market offers a wide selection of machines for various applications. In 2022, the global market value of used construction equipment was $115.32 billion and is projected to grow to $191.55 billion in 2031. This is another good reason to buy used equipment — you can find plenty of affordable used options and compare prices from trusted dealers.
Factors to Consider Before Buying Used Equipment
For a favorable investment, research key factors before purchasing a used machine. Check the equipment’s condition, background and features to ensure they work as the seller claims. Do a test run and inspect the equipment thoroughly. It’s wise to shop around and compare prices to find the best deal for your needs.
Let’s review the following considerations for investing in used machinery:
- Condition:Â Inspect the machine for visible damage from the inside out, including the undercarriage, wheels or tracks, and attachments for unusual signs of wear. Check mechanical functions such as the engine, transmission, hydraulic system and crucial operational components. Perform a series of tests to determine whether every mechanical system works properly.
- History:Â If you can get documentation, such as logged work hours and maintenance records, it can show how long the equipment was used and the repairs made. This can give you a better idea of how long your investment can last.
- Price and warranties:Â Check online and ask other dealers how much the same used equipment costs. Knowing the current market value of the exact make and model will help you arrange a fairer deal. As for warranties, private sellers typically do not offer a warranty for a used machine. Meanwhile, a trusted dealer usually provides a warranty that extends from the original manufacturer or through a certification program.
- Dealer: Consider a reputable heavy equipment dealer that thoroughly inspects machines before selling them. Besides equipment quality, you can secure warranties that help you cover the cost of repair and maintenance. Working with a trusted dealer also ensures that your used equipment does not have undisclosed ownership issues from a private seller.
Choose Quality Used Cat® Equipment from Thompson Machinery
When buying used heavy equipment, count on Thompson Machinery to provide top-quality equipment to help your business grow. We are your reliable Cat dealer in North Mississippi, Middle Tennessee and West Tennessee. Come to us for a broad selection of used equipment, including high-performance skid steer loaders, excavators, dozers, motor graders and more.
Our used Cat machines undergo a thorough inspection before we put them on the market. We also offer used general equipment, aerial equipment and commercial generators for heavy-duty applications. To ensure your used machine stays reliable, we provide preventive maintenance plans that keep your investment in good working condition.
Browse our online inventory of used Cat equipment or visit your nearest Thompson Machinery location to learn more about our available machines. If you have questions about the right equipment, contact us to speak with a trained technical advisor. We look forward to serving you.
