True or false: A new car is always better than a used car?
While we’re all tempted by a new, shiny object, the truth is, sometimes buying a pre-owned vehicle is the smart choice. Maybe it’s better for our budget. Or the older model is actually better suited for our needs. Whatever the reason, buying new is not always better.
The same is true in the tree care industry, and there is growing recognition of this.
The pre-owned equipment market — in the construction industry as a whole, not just tree care — is becoming more popular because it has matured in recent years and the availability of information in today’s world has allowed contractors to better explore their options.
Here are three reasons why you should consider used equipment for your tree care business, followed by three tips to help you in the purchasing process.
- Price — Price is undeniably a major reason why contractors purchase pre-owned equipment. This is true for all types of companies, but it can be a significant advantage for startup businesses that may not have a lot of capital to put into equipment or may struggle to get financing from a lender for new equipment.
- Usage and availability — If a contractor doesn’t need a piece of equipment on every job but expects to use it often enough that owning it makes more sense than renting, then purchasing a pre-owned item may be a good decision. A stump grinder for a tree care contractor who doesn’t do many tree removals is one example. Availability also is a factor. Contractors sometimes get attached to certain models and features and, as equipment is updated, the used market is where they can still get those.
- Service contracts — Aftermarket service contracts are becoming more common, easing concerns among contractors about buying used equipment. One example of this is the Vermeer Confidence Plus® asset protection program. Vermeer equipment receives a detailed inspection from a Vermeer dealer technician and can provide a comprehensive parts and labor service contract for major components.
Once you’re interested in purchasing a piece of pre-owned equipment, here are tips that may help you navigate the decision-making process.
- Know its history — Who owned it? Was it properly serviced? Has it been modified? How would the seller rate its condition? How did they use it? That stump grinder you’re considering — you should know if it was undersized for the jobs the contractor used it on. Also, ask to see service records. They may show not only what’s been done (or not done) to the machine, but also if there is a chronic issue if the same issue keeps showing up on the records.
- Get it evaluated — Get an independent assessment by a trained technician. This will give you an unbiased opinion on the condition of the machine.
- Inspect it yourself — Walk around the machine, get under it and watch it in operation. There are potential warning signs to look out for. For instance, a fresh coat of paint could be covering up damage. Look for unusual wear, such as on the frame and weld joints, and inspect the powertrain. And of course, start up the machine so you can hear it — if it doesn’t sound right, that may be another clue of potential issues — and if at all possible, see it operate in an application similar to how you would use it.
The important point is to do your homework. With careful consideration, you can get a piece of pre-owned equipment that can potentially make a big difference for your company.