Given the chance, who wouldn’t love to buy all their heavy equipment and trucks new? It’s got that shiny, new “wow” factor, doesn’t have scratch or ding on it, and the latest bells and whistles – not mention that “new equipment smell”. But all that comes at a significant cost – both upfront in sticker price and taxes, and hidden in depreciation.
Buying used equipment – a good way to get the most for your money
And cost aside, with so much quality used equipment for sale on the market at any given time, there’s really no need to buy new. Here’s a look at 5 big advantages to buying used equipment and trucks over new.
1. Lower cost
Buying a new piece of equipment is a significant investment that can easily eat up money better spent on a second piece of gear, attachments, or maintaining equipment you already have.
The cost of one new piece of equipment could equate to two or more used pieces, depending on availability and demand.
See used equipment selling prices from the past two years with a free account on our website, or sign up for our free Ritchie Bros. Price Results tool.
2. Avoid initial depreciation
New heavy equipment and trucks are no different than new cars in that the minute you drive them off the lot, they depreciate in value – as much as 20 to 40 per cent in the first 12 months!1 Buy used equipment or trucks and you’re avoiding that initial depreciation.
3. Used equipment holds its value
Although used equipment has depreciated, it can hold its value if it’s well-maintained. When it’s time to sell, it’s actually possible to get close to what you paid if you sell at the right time, to a market where your equipment is in demand.
So stick to a regular maintenance schedule, and document all service and repairs for future buyers to see. Read our article on how to maintain the resale value of your heavy equipment.
4. More choice
The global used equipment market is massive, to say the least. And that’s good news for buyers. That means more choice of equipment than any one brand could ever offer.
Whether you’re looking for construction, transportation, mining, oil & gas, or farm equipment, there are literally thousands of items available for sale at any given time across North America and around the world.
With hundreds of Ritchie Bros. live unreserved auctions conducted around the world each year, weekly online auctions on IronPlanet, and equipment and trucks selling every day on Marketplace-E, buyers can look beyond their local market and tap into the global used equipment market through Ritchie Bros.
5. More flexibility
Buying used equipment offers a high degree of flexibility for your business. If you have short term contracts that require a specific type of machine, you can acquire it relatively quickly and then easily sell it after the job wraps up—with little depreciation.
Buying new can mean long wait times for equipment orders and a significant loss in value from the time you buy to the time you sell.
If you buy at a Ritchie Bros. unreserved auction, every item is sold to a new owner on auction day regardless of price. And we deliver clear title, or we offer the buyer a full refund of the purchase price. That means you can get the equipment you need and put it straight to work.
Find the used equipment and trucks you need at Ritchie Bros. live unreserved auctions, weekly online auctions on IronPlanet, and every day on Marketplace-E