Construction

Utilizing used equipment financing for your company

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Many people when they first start looking at their equipment financing options automatically think of getting brand new machines, but that does not have to be the case. There are loan and lease options available for used equipment and machinery too. 

Used equipment can be a valuable asset to add to a construction business, especially machines with a low obsolescence rate. Listed below are some of the advantages that companies can gain from utilizing used construction equipment financing

Cost-effective 

Brand new equipment comes with a high price tag. When companies then are looking to buy multiple new pieces of equipment, this can add up quickly. Used equipment can be an alternative to buying new equipment to help companies save some cash during purchases. Utilizing used construction equipment financing is a cost-effective strategy that can increase the productivity of the company while maintaining expense levels. Looking at used machines will also help buyers to save money by avoiding the federal excise tax on new heavy duty trucks, which can add 12 percent to the retail price. 

Availability

When buying new equipment, companies run the risk of it not getting delivered in its estimated time frame. This delay can cost the company if they are waiting on the new machines to replace broken equipment and are reliant on its delivery to start production. Not only that, but even just finding a new machine in today’s market can be difficult. Connecting with a financial advisor from Equify’s team can allow you to work together to locate available used equipment. Availability is a game changer for companies who do not want to hold off on a revenue generating opportunity. 

Find the right machine

The used heavy equipment market is vast, being valued at 98 billion in 2019! Used equipment stays in circulation at a higher rate than brand new equipment. This gives owners a better opportunity to find a machine that most precisely meets their needs as a business. There is a high chance that all of a company’s must-have features for equipment can be found on a newer, used model. This is because if there is a new machine that has all the features a company can want, there is the possibility that its older predecessor models will have most, if not all, of those features as well. 

Avoid excess depreciation

Much like a new car being driven off a lot, new construction equipment depreciates as soon as you get it from a dealer. Double-digit depreciation is normal in the first couple of years of ownership, with it starting to level out around year three or four. By choosing used construction equipment financing to buy a piece of pre-owned equipment, companies can avoid taking the initial “hit” of depreciation. Not only that, but you may be able to find a used piece of equipment that still has its warranty. 

Can get a full inspection

When rigorous inspections, frequent checking and routine maintenance are added together, used machines can have the same longevity and reliability as new ones. Business owners are more likely to know that they are getting a quality machine that works when they buy a used machine and get a full inspection of it done. Keeping these full records can also help the used equipment to hold its value longer if the time comes to resell the machine. 

Equify Financial

If you are looking to add equipment to your construction company, you can always utilize used construction equipment financing. Contact a member of our team to learn more about how this can benefit your business. We are here, ready to help.

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