Whether you’re looking to expand your fleet or replace aging equipment, renting and buying new aren’t your only choices. In some instances, the growing number of e-commerce buying options may be the better path for equipment procurement at your company, and for your bottom line.
There are benefits of buying used compared to new equipment, noted United Rentals, which offers a wide variety of jobsite-tested equipment from top manufacturers. Here’s how they stack up:
● Preserve Capital: Buying used vs. new means having more capital to invest in other priorities, which can help you keep up with the latest technology or grow your business.
● Lower Borrowing Costs: Most companies rely on financing to purchase new equipment, and the interest on those loans adds up. When you purchase used equipment, the lower price tag means less financing and less interest.
● Retain Equipment Value: Used equipment holds its value, in large part because much of the asset depreciation has already occurred. By some estimates, 20% to 40% of the value of new equipment is lost to depreciation within the first year of ownership. By purchasing used, you avoid this initial hit and reap the savings from a much lower rate of depreciation.
● Find What You Need: Chances are good that you can find what you’re looking for on the used equipment market. With new models coming out every few years, the used marketplace offers an extensive inventory of equipment spanning several generations.
● Immediate Availability: Buying new requires planning ahead and taking production lead times into account. When you order a new piece of equipment, you may not have it for months. When you purchase used, it’s yours much sooner.
● Boost Flexibility: Buying used equipment meets immediate needs and lets you either keep the equipment at the end of a project or sell it and potentially recoup most of your investment.
● Increase Sustainability: Many companies today are looking to shrink their carbon footprint. Giving a second life to assets that already exist reduces the need for newly manufactured equipment and the consumption of resources such as steel and iron.
Of course, not all used equipment is a good investment, United Rentals added. Buying used equipment that hasn’t been well maintained can cost you more in repairs over time than you saved on the purchase price.
For that reason, choosing a reputable dealer offering equipment that has been maintained and consistently inspected in accordance with manufacturer specifications is critically important.
Online Equipment Marketplaces Benefits
If you’re in the market for used equipment, there are good reasons to consider the growing number of e-commerce buying options. Boom & Bucket, a digital marketplace for operators, and contractors and dealers, details their advantages and how they can streamline utility equipment procurement:
By connecting buyers and sellers, online equipment marketplaces provide a convenient and efficient way to trade, sell, and purchase a vast inventory of equipment.
They allow buyers to browse through a wide range of options. One of their significant advantages is the ability to easily compare prices and specifications, and search for specific types of equipment and compare prices from different sellers.
These platforms have also opened new opportunities for sellers to showcase products to a global audience, expanding their customer base beyond local and regional or even national markets.This increased visibility can lead to faster sales and better prices by attracting a larger number of buyers who may have higher demand for specific types of equipment.
For both buyers and sellers, online equipment marketplaces enable a more comprehensive understanding of the equipment's condition and functionality by providing access to detailed product descriptions, high-resolution images, and even videos.
Traditionally, buyers and sellers had to use on-site locations to buy or sell utility equipment and employ a time-consuming process for negotiating prices and finalizing deals involving phone calls, meetings, and paperwork.
But, with the advent of online equipment marketplaces, buyers and sellers can communicate directly, making the process more efficient and transparent.
Initially, online equipment marketplaces were limited in functionality. However, advancements in technology continue to transform them into robust tools for equipment trading.
For example, features such as integrated financing options and real-time bidding systems are being explored to enhance the user experience and streamline transactions.
Buying and Selling Options
● Boom & Bucket provides detailed descriptions and specifications of over 40 categories of equipment, including ownership histories and maintenance records. The site also offers financing and delivery options.
● Equipment Trader offers an inventory of heavy equipment through a user-friendly interface, including a range of options for lifting, construction and industrial equipment, and trailers.
● IronPlanet, which provides cranes and construction equipment among other options and is known for its comprehensive inspection reports and buyer protection program, has combined with Ritchie Bros. to offer on-site and online weekly auctions.
● Tuffwerx connects buyers and sellers of used heavy equipment through a platform with advanced search filters, and detailed equipment listings, including specifications, condition reports, and photos.
It is no longer a question of whether online marketplaces for equipment will evolve, Boom & Bucket noted. The significant shift in that direction in recent years is revolutionizing the way buyers and sellers connect.
Today, those portals are continuing to bring new ideas and offer innovative features to the industry.
Seth Skydel is a writer with 38 years of experience covering the trucking, utility, construction and related markets.
Lift & Access is part of the Catalyst Communications Network publication family.
