Buying a new horizontal directional drill (HDD) can be an exciting time or an overwhelming process. Maybe business is booming and a contractor needs an additional drill to keep up with demand or, maybe old faithful has finally reached the end of its useful life and needs to be replaced. One of the first things a contractor needs to decide is whether to purchase a new or used HDD.
These six things will help guide you through the purchasing decision.
1. Purchase price
The upfront purchase price of a piece of use equipment can be considerably less than that of a new unit, depending on the equipment condition, market demand and many other factors.
Related: Shop Vermeer pre-owned equipment
2. Financing
Some contractors do not have enough cash on hand to buy a drill outright, so learning about financing options is important. Buyers usually can qualify for a lower interest rate when purchasing a new drill than a used one, and many lenders are more likely to offer a longer financing period for a new drill. Keep in mind that some lenders don’t offer financing for a drill older than seven years.
3. Cost of operation
Beyond the purchase price, a contractor should take into account the cost of operation. A used drill could be due for replacement of standard wear items or even major components — leaving the owner with unexpected additional costs.
4. Warranty
Most new drills come with a standard warranty — with the option of upgrading to an extended warranty or service contract. However, used drills are not usually sold with a warranty, though options do exist through third-party warranty or insurance companies. But not all warranties are created equal, so it’s important to know what exactly is covered in the warranty. A contractor will need to decide whether the cost of the warranty coverage is worth the risk major component failing.
5. Maintenance
Contractors may want to consider their commitment and diligence to maintenance when selecting a new or used drill. Some basic service intervals may even be included in the warranty for a new drill. Before purchasing a used drill, request a copies of the maintenance record to know how well the machine was maintained.
6. Technology and productivity
Many new HDD machines have improvements in speed, rod cycle time and are equipped to offer technology advantages such as telematics, bore planning, bore data collection, etc. You, as a contractor should determine the value and benefit of these new features.
Vermeer Job Ready
If a used drill seems to be the answer, be sure to get to know the new Vermeer Job Ready service contract pre-owned equipment program. Similar to a pre-owned program at a car dealership, Job Ready contracts give contractors peace of mind that select used equipment will be productive after it’s been purchased. Job Ready contracts combine the support of the Vermeer dealer network, up-front inspections and a robust service contract that covers major component failure for up to six months or 750 operating hours after purchase.
Be sure to contact your local Vermeer dealer for complete program details and limitations.