Construction, traditional as well as modular, is one of the fastest growing industries across the globe. It accounts for an employment share of 11.1% in Alberta solely. The rate of growth for this industry is further expected to increase over the years as reflected by the report, Global Construction Outlook 2021 by Research and Markets. The study predicts a steady growth in the construction sector, foreseeing an expansion close to 3%.
Hence, it is crucial for construction businesses to streamline their operations and make smart investments towards the expansion of their tools and equipment. Investing in economical but quality used equipment not only helps businesses save significantly on the cost of purchase but also helps them develop their services in the long term.
Here’s a closer look at the chief advantages of buying used construction equipment to help you make the right choice:
1) Financially prudent
Buying used heavy equipment is an economic choice for most business owners. This is because purchasing equipment of any type is a huge investment for a business. Opting for used heavy equipment can minimize this investment significantly. It also creates a prospect for business owners to spend the outstanding amount towards the repair and maintenance of their existing gear.
2) Lack of Initial Depreciation
Similar to most automotive purchases, procurement of any new piece of heavy machinery depreciates its value up to 40% over the next year. Manufacturers and contractors can avoid this initial depreciation with the purchase of used equipment and avoid the tentative loss during resale.
3) Assured Resale Value
As mentioned previously, the resale value of any type of heavy equipment depreciates with time and usage. However, the sale of used equipment purchased from reliable contractors like Northgate Industries can almost recover its entire cost, if sold at the right time in the right marketplace. It is also important to keep in mind that the equipment needs to be maintained correctly and used practically to retain a good resale value.
4) Better Management of Cash Flow
The purchase of heavy equipment is a significant expense for most businesses. Buying used heavy equipment can lower this expense and help owners streamline their cash flow. This is because, the lower cost of your equipment, the lower your expenditure towards its credit payment. These savings can help you diversify your assets and invest towards other prospects of your business.
5) Access to Extensive Options
This is one of the key advantages of buying used construction equipment. The global market for the sale and purchase of heavy equipment is extensive and offers a diverse range and variety to buyers. Purchasing your equipment from authentic contractors like Northgate Industries provides buyers access to a wide range of used equipment from reputable brands like Hitachi and John Deere. It also ensures that the service and product warranty of the equipment is intact during the purchase.
To find the right equipment for your business, consult our experts at Northgate today.