Construction equipment is a considerable investment for any company, so it’s worth considering all the options before making a purchase.
Advantages of buying used construction equipment
New construction equipment comes with the latest technology or features, and the security of a warranty. However, buying used equipment has a number of advantages – and especially in an African context, it’s often a better value proposition for companies than buying new.
Price
Second-hand equipment that’s in good condition is significantly cheaper than new machinery. It may give companies a substantial economic advantage in competitive industries like construction.
Exchange rates
Most heavy construction equipment is imported from China or the United States.
Because of shipping costs, unfavourable exchange rates and heavy import taxes, new heavy equipment can end up costing a lot more in African countries than it would elsewhere.
Value retention
Demand for used construction equipment is high, so the resale value of used equipment is generally very stable.
During times of economic stress, sales of used construction equipment increase, while new sales shrink. This helps ensure that used equipment retains its resale value.
Choice
Especially in Africa, the used equipment market is substantially bigger than the market for new heavy equipment.
This means that the secondhand market, including used and refurbished equipment, offers much more choice, with availability of a very wide range of machine types, models and manufacturers – and more options in terms of price.
Flexibility
With new heavy equipment, there’s typically a waiting period between purchasing the equipment and actual delivery. In contrast, it’s usually possible to buy used equipment and begin using it almost immediately.
Also, with high demand for used machines, it’s feasible to buy equipment for just one job and then sell it on, saving on maintenance, insurance and storage costs.
Avoiding depreciation
New equipment depreciates quickly after initial purchase. Used equipment has already weathered its depreciation period and has generally settled to a price that is almost matched by its resale value.
Reconditioned construction equipment
When buying used construction equipment, look for refurbished or reconditioned machines. This equipment has been disassembled, inspected and had all damaged or worn parts replaced.
The benefits of reconditioned machines are obvious. You can purchase equipment that has similar reliability and performance to a new machine but at a fraction of the cost. Reconditioned equipment also carries some form of warranty, giving extra peace of mind.
Reconditioned CAT graders from KH Plant
At KH Plant, we specialise in reconditioning 140G, 140K and 140H Caterpillar graders. Our rigorous rebuild process involves completely disassembling and then rebuilding each grader. This ensures that a grader we recondition will look, perform and last the same as a new machine.
All our graders come with warranties and after-sales support. To find out more about buying used construction equipment without compromising on quality, contact us online or call us on +27 83 274 4882.
