Heavy equipment is the backbone of construction, agriculture, mining, landscaping and many other industries. If you have a business that relies on heavy machinery, you know how important it is to continue adding capable machines to your fleet to meet your growing business needs. But should you opt for used or new options?

There are cases where purchasing a new machine is the right decision, but there are also times when buying a used machine makes the most sense. Below, we explore the reasons to buy used heavy equipment instead of new models.

Why Buy Used Heavy Equipment?

When most people think of choosing between new and used heavy equipment, they often focus on the financial aspects. While cost is a huge factor, it is only one of many advantages.

Check out some key benefits of used heavy equipment below.

1. Lower Upfront Costs

One of the biggest advantages of choosing used heavy equipment over new machinery is its cost-effectiveness. The cost of construction machinery and equipment has been increasing annually since 2005, with 2023 seeing an 8.8% increase from the previous year.

Buying brand-new heavy equipment means a high upfront investment for your business. On the other hand, purchasing used models can yield savings of up to 50% and help you get the machines you need without straining your wallet. As long as you are buying heavy equipment from a reliable supplier, it can be just as effective for your company as new equipment, but at a fraction of the cost.

2. Reduced Depreciation Rates

Depreciation rates are an important consideration for whether you should buy used heavy equipment. When you purchase a new car, its value depreciates up to 30% within the first year. The same principle applies to heavy machinery, but here’s the good news — depreciation slows down in the later years. 

This means that by choosing to purchase used heavy equipment, the primary depreciation years could have already happened. As a result, the equipment would not lose as much value as you would experience if you invested in new machinery.

3. Immediate Availability

A potentially frustrating aspect of purchasing new equipment is waiting for its availability. Oftentimes, you cannot visit a dealer, buy the machine and leave with it in your possession. Instead, you might have to place an order, wait for the manufacturer to make the product and — once they've assembled it — wait for it to be delivered. It can take anywhere between a couple of weeks and several months for you to receive your machinery.

So, what happens if you're starting a project in a week and need a certain machine, but it is not readily available to buy new? Purchasing a used model can help you get the equipment your business needs when it needs it with less wait time. 

4. Reduced Insurance Rates

When you purchase new equipment and get insurance for it, the quote from the insurance company will be based on the replacement value of the machinery. This means that the higher the cost, the higher your insurance premiums will be. 

In a nutshell, you could save a lot of money on your insurance premiums by opting to buy used heavy equipment instead of new machinery.

5. More Cash Flow

We’ve discussed how purchasing used heavy equipment can cost less and give lower depreciation and insurance premium rates. All these savings mean cash back into your business, which you can direct into other essential areas such as marketing, bidding on projects, training your operators or improving operations. 

Buying used equipment is a great way to boost cash flow and help your business make strategic decisions to support overall growth. 

Top Tips on Shopping for Used Heavy Equipment

This guide highlights the many incredible benefits of purchasing used heavy equipment over new ones. However, it’s essential to understand that not all used equipment is equal. There are a few important tips to keep in mind when purchasing used options: 

• Choose the right dealer: A reputable used equipment dealer will have a good track record of selling durable, high-quality and properly serviced used machinery. Read customer reviews and testimonials. Inquire about the equipment's service history and dependability — you want to know if your business is adding a reliable machine to your fleet. A reputable dealer will also be able to provide you with the proper documentation for your machine. 
• View the maintenance history: An excellent way to tell if you’re making a good purchase is through the service history. Have a look at all important points like service dates, equipment hours and any past repair needs.  All these factors will indicate whether or not the equipment was used and cared for responsibly. 
• Consider the age of the equipment: It’s essential to know how old your used equipment is so you can factor in when you’re likely to replace it. For example, a machine that’s just a couple of years old will likely last longer than an older machine with a lot more hours. In addition, looking at the age of the machine will help you factor in how much maintenance it will likely need in the future.
• Inspect the machine: Whenever you purchase a used machine, it’s a good habit to properly check it to ensure that it is still in good condition. Perform a visual inspection to check the body for any signs of damage. Inspecting your heavy equipment may include having a look at the general body, scanning for dents and seeing if there are oil leaks. Is the battery damaged? Are the tires worn out or cracked? How about the exhaust? Does it emit smoke? All these are important questions to ask before deciding whether or not to purchase a used model.

Get Used Heavy Equipment from Wagner Equipment Co. Today

Wagner Equipment Co. can help your business enjoy the many incredible benefits of choosing used heavy equipment instead of new machinery. Our inventory of used options can save you money, help reduce insurance premiums and enable your team to leverage equipment sooner. Working with a reliable partner is key to getting the best solutions for your business. 

Wagner Equipment Co. specializes in providing high-quality equipment from a variety of top manufacturers. We offer delivery and financing options to make purchasing your next machine simple. 

If you're ready to enhance your fleet, explore the vast inventory from Wagner Equipment Co. online today. Our team is here to help you find the right machines for your unique applications. Find a dealer location near you to get started.