Buying Used Heavy equipments refers to the motorized machine. It performs mechanical activities but one which does not come under the commercial vehicle category. Heavy-duty equipment or machinery is used mainly in the construction, mining, forestry, and farming sectors. Some popular heavy equipment types are excavators, earthmovers, tractors, cranes, cement mixers, backhoes, graders, and generators.
Excavators are among the versatile heavy types of equipment that play a pivotal role in the civil construction industry. Their primary function is excavation but used in other areas like cutting trees, demolitions, and heavy lifting. With superior mobility and digging powers, used heavy equipments performs many functions such as digging trenches, excavating mines and breaking holes.
Excavators play a significant role in increasing work productivity, reducing manual labor, and the risks associated with such work. While this is a crucial machinery for carrying out the project works, buying a new excavator is quite expensive, typically ranging from 200,000+ AED to 5,00,000 AED for midsized and full-sized equipment.
For people in the construction and mining business, owning excavators is not an option but a necessity. Excavators of different capacities may be required for large and medium-sized companies working on multiple projects simultaneously. Established construction companies having a fleet of excavators that have been purchased outright in cash or financed by banks. If a company can have an ideal debt-equity ratio on their balance sheet, with many years of profitability. It becomes a lot easier to get the equipment funded by financial institutions. All you need is to show them as assets in the balance sheet and claim depreciation benefits.
Constructions companies usually have a high debt-equity ratio and project-based operations, which increase the asset risk. As a prudent construction company, it is best to decide whether buying new equipment is beneficial with the latest models or sparingly used heavy machinery will do. At the outset, it is perceived that used models can be equally efficient and available at a highly discounted price.
Buying Used Heavy Equipment, for example, an excavator can be beneficial as it can result in substantial savings and lower upfront capital investment. An excavator looks good and shining when it comes out of the showroom, but the visual pleasure is momentary. That’s because just after a few days of use in outdoor conditions, the equipment gets covered with dirt and grime and few dents here and there. The value of the new excavator already depreciates by 15% to 30% the moment it is purchased.
An average lifespan of an excavator is 7000 to 10000 hours of use. That translates to around five years of useful life if operated for 8–10-hours daily.
Then there is the residual scrap value also at the end of its useful life. When one buys an excavator 1-2 years old, one can expect to pay only half the original price of the new equipment. That is a great saving, not to mention that it might have been sparingly used in terms of hours which gives one to use it for an extended period.
Reputed Heavy Equipment companies in UAE keep rolling out new models every few years. It accelerates the pre-owned equipment markets where new buyers exchange their old equipment. The opportunity to get a wide selection choice helps construction companies or many newcomers or small-time contractors get bargain deals in this segment. The old models are familiar to the players in the construction industry. They know its performance history and how it operated. It helps the operators to use it efficiently without having to undergo training.
Buying used excavators saves one from the high initial capital outgo. It also saves on overall costs associated with the equipment. A well-furbished used excavator, if purchased from reputed dealers like Anwar Al Quds machinery in Sharjah, not only comes with certified quality but is also backed by warranties and after-sales service.
The advantage of taking services of reputable and established heavy machinery companies in UAE is that one can choose from a large, well-maintained inventory with attractive discounted prices. In times of uncertainty with lockdowns getting frequent, it makes sense to opt for cash conservation and go for certified buying used heavy equipments. They, after all, may not be shinning like a new machine but provides the same productivity, efficiency, and performance.