New Or Used Construction Equipment - The Return
On Investment Decision
Author: Chris Warren

It has always been a debate whether to buy new or used
construction equipment. Smaller fleets prefer to buy used
construction equipment as they attract less capital
investments. Another reason for people to opt for used
construction equipment is that they are sometimes as good as
new and come at a very heavy discounted price as compared to
that offered at the showrooms.

Moreover, Associated Equipment Distributors (AED) and
TradeYard, Inc, have jointly announced an alliance that shall
provide certified inspection of used construction equipment
that can also be sold online. This has been done to boost the
business-to-business sales via online medium. It gives better
promotion to the sale of used construction equipment and buyers
to be confident about their purchase. Usually buyers buy the
used construction equipment only upon the preliminary
inspection done by the technical agent from either the buyer or
the seller side. Since a neutral and unbiased inspection report
shall be available it would lead to increased sales and more
profitable bargains to small investors. Small fleet owners
usually opt for used construction equipment sold from earlier
projects. Large construction companies that carry huge fleet of
construction equipment can also strike a good bargain at onsite
purchase of such certified used construction equipment.

There had always been a skeptical attitude towards the
economies in the Indian sub-continent, Russia or Latin America.
But over the past years these economies have shown a constant
and steady growth. The demand to construct new projects or to
renew the old ones has been always in demand. Since these
countries are not as cash rich and affluent, they usually have
constructors who have smaller fleet. Moreover, they also do not
have enough capital to be invested in developing a large fleet.
They are always on a look out for used construction equipments.
Along with this these constructors take on projects in the
neighboring countries and shifting heavy and used construction
equipment is also not feasible. Thus sales of such equipments
is constantly in demand

Apart from the projects in these countries, bigger companies
take up their projects in the continent of Africa and also the
Gulf countries. Thus they opt to buy used construction
equipments available locally from the companies or constructors
who wish dispose off their fleet. The used construction
equipments are also on the sale due to the feasibility reasons
that lie on the seller's side as well. The construction
companies who have finished off their projects in foreign lands
and take up projects in other countries, for such large
companies it is more feasible to dispose off their used
construction equipment and assemble a new fleet at the onsite
location rather than carry them to the new land. This is due to
the reason that various countries have different rules for
export and import of heavy equipment required for
infrastructure development.

Some countries impose heavy taxes and import duties to restrict
import of used construction equipment. This is done to prevent
the domestic markets and small construction companies with
limited resources. Further, export of such used construction
equipment requires various documentation procedure, inspections
and other legal formalities. All such activities are not only
tedious but also time consuming. These formalities also require
lot of duty fulfillment at both the ends. Moreover clearance at
the ports and damage caused in handling and shifiting these
equipments is also very tedious job.

Thus construction companies prefer to buy new or used
construction equipment locally. Only Large construction
companies or companies who have strategic partnerships in the
local market for a company prefer to import a part of their
used construction equipment for their ongoing projects.


About The Author: Chris Warren, Construction Engineer and
Construction Equipment engineer at cBuild Group LLC (
http://www.used-concrete-equipment.com ) publishes other
articles related to Construction Equipment at
http://www.heavy-equipment-prices.com and
http://www.construction-equipment-financing.net