Excavators, loaders, bulldozers, backhoes and other types of heavy equipment make many of the most ambitious construction projects practical. Not having access to such assets can rule a job out or slow the pace of progress unacceptably.
Many construction companies struggle with how to pay for the equipment they need to tackle the work before them after getting the financing for heavy equipment. Fortunately, there are some straightforward, highly effective ways to save money when buying heavy construction equipment.
It is Always Possible to Save Money on Heavy Equipment Purchases
Especially heavy machines produced by leading manufacturers like Caterpillar can carry retail price tags of $1 million or even more. While it might sometimes make sense to simply pay the usual asking price for a piece of heavy equipment, there are ways of getting better deals in just about every case.
Four of the options that most often help keep purchase costs down are:
1. Participating in auctions
Sellers are not always as motivated as buyers might hope, and that can make it difficult to negotiate. Heavy equipment auctions where the highest bid is guaranteed to prevail, though, oftentimes allow for excellent deals. Buyers who bid on equipment auctions here can purchase anything from asphalt pavers and telehandlers to boom lifts and bulldozers.
Auctions do away with the usual sales process in favor of a better defined, more streamlined approach. In addition to saving money on the purchase price itself, heavy equipment buyers who opt for auctions can cut down on the amount of time and effort they need to invest into making a purchase.
2. Focusing on used equipment
All types and models of heavy equipment are designed to stand up well to difficult duties and harsh environments. Buying a brand-new machine might sometimes be the best option, but that will generally mean paying a premium compared to purchasing a pre-owned piece of equipment. While it will take a bit more research and preparation to ensure an appropriate purchase, used equipment that has been thoroughly inspected and vetted is easy enough to come by. Especially risk-averse buyers can even opt for add-on warranties that will put a limit on future repair costs.
3. Planning for the future
The $192 billion global construction equipment industry is a place where every possible need is being catered to. Some companies make the mistake of focusing too narrowly when buying new construction equipment, and that can end up being costly. It will almost always be better to spend a bit more for a piece of machinery that will serve its purpose well into the future.
Construction businesses that develop well-informed purchasing strategies tend to spend less money on equipment without compromising along the way.
4. Timing the purchase well
When an upcoming job calls for a new piece of equipment, a construction company’s leaders will sometimes feel forced to complete a purchase quickly. It will always be better to have some leeway that allows for more shopping around, price comparison, and consideration.
Being able to delay a significant equipment purchase even a couple of months can enable impressive amounts of savings. In some cases, simply making use of temporary options like renting or leasing will allow for the pursuit of such opportunities.
Making the Most of a Major Investment
Just about any heavy equipment purchase will be a significant move for the buyer in question. Strategies like those above can help minimize the amount of money required to obtain an important piece of equipment. That will always make it easier to ensure that the returns which follow justify the investment and more.