Buying used construction equipment or a brand new one has been the topic of debate for years. Many experts feel that one should go for brand new equipment as they are installed with latest technology and one may find it far convenient to work on a new machine than a used one. However, others share a different opinion altogether. They feel that for new construction companies, it would be rather difficult to buy new machines as that can push them towards financial debts if they are unable to pay their monthly installments. Even if they manage to buy the machine outright, there are still high chances that they may drain away all their resources and end up borrowing to meet other business requirements.
It is difficult to judge what one should be doing as decisions should be taken based on the circumstances in which a person is. Let us assume that the construction business owner has surplus reserves and will have no problem if he pays the entire money in cash. Well, in this situation, he needs to analyze if he may need to pull out anything from the surplus to meet any of his business requirement for the next 9-12 months. In case if he feels that there may be a need for him to take some cash out and by investing the money in buying equipment can lead to financial difficulties later on, he should abort his plan to buy the equipment outright. But if he sees no encumbrances then he can make his way ahead to buy the machine.
Small construction companies should primarily focus on buying used equipment as that will not cost much to them. Used construction equipment can be bought at a reasonable price which they can easily afford. Nevertheless, the drawback a used construction equipment will have is that it will not have the advanced technologies installed in it that a brand new equipment will have. This will be a bit of pain to the operator and slightly more pain if he is accustomed with operating on new machines. He may not find it convenient to operate the machine like he used to with the newer ones. But if the operator can work on both old as well as new equipment, he will only need some days to get accustomed to the older version.
The other hurdle that a small construction company experiences quite often is with managing its finances. If they are not so financially stable, then it is never recommended for them to buy a new machine. That will only increase their business debts and it takes a long time to clear them all. They also have to do a bit of research work trying to know the lender who can offer them loan at the most affordable rate of interest. Now most of the small construction company does not have the time to do any of these research works. Therefore, it is prudent that they stick to the used machines and once they feel that they are getting financially stable that they should think of going for a new one.