The decision to invest in new versus used construction equipment is a perennial debate. Smaller construction companies often favor used equipment because it requires less upfront capital. Used equipment can offer significant cost savings compared to new models, sometimes performing nearly as well at a fraction of the price.
To facilitate safer and more transparent transactions, Associated Equipment Distributors (AED) and TradeYard, Inc. have formed a partnership to provide certified inspections for used construction equipment sold online. This alliance aims to boost business-to-business sales by providing buyers with unbiased assessments, fostering confidence in their purchases. Traditionally, buyers relied on preliminary inspections from technical agents representing either the buyer or seller. Neutral inspection reports can lead to increased sales and more profitable deals for smaller investors and large companies with vast equipment fleets who seek to negotiate on-site purchases of certified used equipment.
While skepticism once surrounded emerging economies like India, Russia, and Latin America, sustained growth has driven demand for both new and refurbished construction projects. These regions often have smaller construction companies with limited capital, making used equipment an attractive option. Furthermore, companies working on projects in neighboring countries often find it more practical to source used equipment locally rather than transport heavy machinery across borders.
Larger companies undertaking projects in Africa and the Gulf countries also frequently purchase used equipment from local sources. Feasibility considerations often drive sellers to dispose of equipment. Companies completing projects abroad may find it more cost-effective to sell their used equipment and assemble a new fleet on-site, avoiding the complexities of international shipping and varying import/export regulations.
Importing used construction equipment can be challenging due to varying national regulations. Some countries impose high taxes and import duties to protect domestic markets and smaller companies. Exporting used equipment involves extensive documentation, inspections, and legal formalities, which can be time-consuming and costly. Port clearance and potential damage during handling and shipping further complicate the process.
Consequently, construction companies often prefer to buy new or used equipment locally. Only large companies or those with strategic local partnerships are likely to import used equipment for ongoing projects.