Obviously, many organizations and people have a desire to own brand new business and industrial equipment. It is only natural to want something right out of the box with a ribbon still on it. But it is wise to consider buying used and saving capital for other investments.

In addition to being well made and made to last for many years, new equipment comes with a premium that is lost to depreciation as soon as it leave the showroom. So why pay an additional five to ten thousand dollars when you are not getting any additional value.

When you buy new heavy equipment, you are essentially paying the salary and travel expenses for the sales people and part of the rent and utilities for the lovely showroom that housed it. Once it leaves the showroom, even if it is only a month old, the value of the product drops significantly.

When you think about this, it tends to make a lot more sense to purchase a cheap tractor, invest in a used skid steer, or even a used dozer for saleas opposed to wasting capital that you can never recover. To business people this type of analysis should be second nature, but quite a few are victimized by the shiny new green and yellow of a John Deere tractor, or the look of a new gold Caterpillar dozer, or that cute red and white Bobcat skid steer loader. Yes they are attractive, but they are not the very best investment decision for your company.

Used industrial equipment comes with a warranty very similar to new purchases. This should provide the buyer with peace of mind that any kind of needed repairs, especially expensive repairs, will be covered and not a big expenditure.

As stated earlier, major equipment loses value as soon as it leaves the showroom, so if wear and tear is a concern, you can buy an almost new vehicle, have all the benefits of a new item, less the additional costs. So the maintenance costs will remain low and any major expenses are still covered within the terms of the warranty.

Buying used construction equipment may also have tax advantages or perhaps implications. When you take the time to weigh the price advantages though, I believe you will clearly discover the dollar outlay savings.

Decisions like whether to purchase brand new or used ought to be given cautious and logical thought and certainly not be taken frivolously. Based on the actual resources accessible to you or your company, you may wish to seek advice from your CPA or other business adviser.

Known as the master of the deal, Lou Adler can get you a used lawn tractor, backhoe, skid steer, or any construction equipment you could possibly want.