Are you looking to acquire used construction equipment? Wondering if it is beneficial to buy used construction equipment, or is it better to rent or lease it instead? Either way, purchasing additional construction equipment is a big investment for your company and requires careful analysis to ensure that you picked the option that’s best for you! This ultimately comes down to what your operational expectations are and the status of your cash flow. Take a look at a comparison between the three acquisition options and make your decision accordingly:
- Buying Used Construction Equipment
Purchasing used construction equipment is a great option for small and medium sized construction companies as it allows them to purchase better technology at reduced rates. For instance, a second-hand mixer manufactured by a company like Caterpillar will still be more efficient than a brand new mixer manufactured by a tier-two company. Not only will the second-hand mixer provide better results but will require less money to purchase and provide quicker ROIs. This also allows you to allocate your existing funds better as many a times you might get a good deal which will allow you to purchase additional equipment as well at the price of purchasing a brand new one!
Not just that, the purchasing process is also highly simplified. These days there are a number of digital platforms that are created to facilitate the buying and selling of used equipment, cutting short the whole process which only requires you to shortlist the preferred sellers and inspect the equipment before making your decision.
Takeaway – Buying used construction equipment means lesser acquisition costs, enhanced cash flow and higher purchasing capacity, ideal for companies with higher outputs and long term demands.
- Leasing Construction Equipment
Leasing heavy-duty construction equipment is also a good alternative as it allows you to lease a certain type of machine till you need it and at the end of the lease period you can return it for a newer model. When it comes to leasing equipment, all you have to do is decide the leasing terms and pay for the duration of the lease.
Other associated costs like regular maintenance and upkeep are all borne by the lessor, thus reducing the costs involved! Apart from this, many companies also provide flexible lease payment options making it a very cost-effective option for small scale construction companies with limited cash flows.
Takeaway – Leasing construction equipment allows you to regularly update your equipment stay up-to-date on the technological front, ensure compliance with regulations while decreasing the risk of the equipment going obsolete, making it ideal for medium sized construction companies, especially those in the process of expanding operations.
- Renting Construction Equipment
Renting construction equipment is similar to leasing but in this case you only pay for the equipment for the number of days you actually use it! Again, similar to leasing the costs of upkeep and maintenance are borne by the owner/rental agency. Renting construction equipment gives you additional flexibility in terms of costs acquired.
Say for instance, you want to use equipment from a particular brand but half-way through the project you realize a different brand is better suited to your needs; you can talk to the renting agency and get the equipment changed. It’s a great way to test-drive machinery before actually purchasing it. However, long term rentals can turn out to be very expensive and should only be considered if you have the bandwidth to pay for it.
Takeaway – While renting reduces acquisition costs and paperwork required, it can turn out to be a costly affair in the long run as the rates are much higher. However, it is ideal for construction companies that deal with varied types of projects where the demand for equipment is only short-term.
While there are multiple options when it comes to acquiring the desired machine for your construction project, it all comes down to your financial position and your expectations from the machine. So, start with analysing your needs, your expectations in terms of operational hours, resources available, man power needed and then consider all your options carefully before making the final decision!
If you are looking for more information on the best option for you, call our experts on +91-992-599-6774 or contact us and let them guide you through the purchasing process!