decision analysis

Heavy equipment, such as a motor grader, is a significant expense. It’s essential to properly analyse the alternatives, including buying new, reconditioned or used motor graders.

SWOT analysis: buying used or reconditioned instead of new

A SWOT analysis is a simple framework for identifying and considering strengths, weaknesses, opportunities and threats.

The framework’s traditional application is to assess an organisation’s competitive position. It can also be used to analyse a range of strategic decision alternatives.

SWOT decision analysis
Xhienne CC BY-SA 2.5

Here’s a basic SWOT analysis that can be used to support informed decision-making relating to new, used or reconditioned motor grader investment.

S – Strengths

  • Sustained growth experienced in the construction sector, in Africa and across the world.
  • Infrastructure build, coupled with the demands of particularly robust real estate and mining sectors, is expected to continue unabated into 2023 and beyond.

W – Weaknesses

  • Increasing demand for used equipment, driven by supply constraints in the new machinery manufacturing sector.
  • Higher prices for used machines due to demand-versus-supply issues.

O – Opportunities

  • High maintenance costs, typically associated with used equipment, are offset by OEM-quality machine rebuilds.
  • Cost-positive exit strategy due to a rising demand for used and reconditioned heavy machinery.

T – Threats

  • Machine redundance caused by the rapid emergence of enhanced technologies.
  • Global demand for green, eco-friendly heavy machinery and equipment.      

Decision matrix: buying new, used or reconditioned motor graders

A decision matrix is a simple, graphic framework for comparing alternatives based on multiple criteria, each of which you assign a weight.

 CostDelay in arrival post purchaseReliabilityNew tech featuresRecourse in event of mechanical issuesAfter-sales supportRetention of value for resale
New       
Used       
Reconditioned       

Under each criterion, allocate a weight from one to five in each cell.

Cost

Used machines may be the most cost-effective option but the risk of failure is high. Reconditioned motor graders perform as new and are up to 60% cheaper than new machines.

Delay in arrival after purchasing

New equipment supply issues are resulting in long delays in delivery. Plants specialising in the rebuild and sales of reconditioned motor graders typically have stock readily available.

Reliability

Used motor graders are high-risk investments. Physical inspections can be deceiving and frequently fail to detect serious damage or wear and tear.

Reconditioned machines are rebuilt to OEM specs and provide the same reliability and performance as new equipment.

New technology features

New machines feature enhanced technology capabilities that typically require specially trained operators.

Depending upon the graders’ uses, cheaper and less complex machines can be as effective.

Recourse in the event of mechanical issues

Used machines are usually purchased voetstoots – at the buyer’s risk. That leaves little-to-no recourse in the event of performance issues or complete machine failure.

Reconditioned motor graders are typically backed by a full warranty, like that of a new machine.

After-sales support

Reputable dealers of both new and reconditioned motor graders offer extensive after-sales service and support.

Retention of value for resale

All machines depreciate. An expert rebuild can significantly increase the worth of any make or model of motor grader.

Why consider buying a reconditioned grader from KH Plant

KH Plant specialises in buying, reconditioning and selling Cat 140G, 140H and 140K motor graders. Here are some reasons it’s worth buying a reconditioned motor grader from KH Plant.

  • more than three decades experience in reconditioning Cat graders
  • machines backed by a full warranty and after sales service
  • deliveries throughout Southern and East Africa
  • precision engineered to as-new condition
  • competitively priced.

KH Plant buys, reconditions and sells Caterpillar 140G, 140H and 140K motor graders, in South Africa and across the continent. Contact us to buy a reconditioned Cat motor grader or to discuss your grader needs.

Do you need expert assistance?

Call us now on +27 83 274 4882 or email us.

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