A backhoe loader is a versatile equipment that is used for excavating, digging and loading materials. Unlike the traditional shovels the digging buckets of the backhoes pulls the dirt backwards. From there the machine gets its name. Backhoe loaders are important for any construction company as these make two important jobs of digging and moving easier. With the aim to save time and money, construction companies invest in backhoe loaders.
When it comes to investing in backhoes, there are two choices in front of the buyers- new or used. Each option comes with its advantages and disadvantages. It depends on the buyers’ needs and budget which one will be better suited for them.
Let’s highlight on the pros and cons of buying a new backhoe loader.
New machines come with warranty that covers defects and malfunctions for certain period of time. The warranty provides a peace of mind to the buyers who knew that they are protected in case of any issues in the machine arises.
Improved technology and performance
A new backhoe loader is equipped with latest technology and features. This improves the efficiency and productivity of the machine in the job site. Moreover, the machine is not subjected to wear and tear which means it will have a longer life span than a used machine.
It is expected that any new model will require less maintenance and repairs in the primary years allowing the buyers to save money and time.
The new equipment is designed keeping in mind fuel efficiency and environmental factors. It can be an important factor for investing in new machinery for environmentally conscious buyers.
Some equipment are:
Capital investment: The cost of a new backhoe loader varies between $50,000 to $150,000. So, it requires a major capital investment if you are serious about buying a new machine. If you do not have the full amount handy, you need to arrange for financing. It means that you will end up paying more in interest.
Depreciation: It is a reality that the heavy machineries deprecate much faster than the used ones. Though there is no general rule but it is seen that the resale value of the machineries drops drastically in the first few years of usage than in their mid or late life spans.
Availability: any new machines are listed for sale, but they are not readily available with the dealers. After you order a new back hoe loader, the parts will be assembled and the machine will be made totally functional before it is delivered at your place. It requires certain amount of time to get this job done. Hence, it can cause delay in executing your project.
Dubai’s used heavy machinery market is thriving thanks to the vast inventory of quality machines retained by the top companies.
Here are some of the reasons why you should consider buying used backhoe loader:
Lower cost: Used backhoe loader is definitely going to cost you lesser than the new one. In some cases, you do not have to compromise on the quality or functionality even you are investing in a used machine.
Avoid depreciation: When you are buying a used machine, someone else has already suffered the initial hit of depreciation. The value of used machines also depreciates but at a much lower rate than the new ones.
The value of used machines does not depreciate quickly, especially when you maintain it regularly. When it is time to upgrade, you will likely get an excellent return on investment.
Wide selection range: There are different models of used backhoe loaders available with the dealers. The greatest advantage with used models is that it is readily available. There is no need to wait for getting the machine parts assembled once you have ordered.
Though, investing in used equipment seems to be a tempting proposition, there are a few points you need to be careful about before you buy one. Never buy used machineries from any unauthorized sources. Doing so, you may save a few bucks but you may end up with an inferior quality product or a stolen one. So, always purchase used heavy machinery from reliable and authorized dealer who are there in the market for several years.