Which Costs Less—New or Used?

September 28, 2010

Click for larger imageLong-term cost of ownership and operation is hardly considered a crucial reason to buy new or used equipment. Just 44 percent of people chose cost as one of the top three reasons to buy new, ranking third well below productivity-oriented reasons at 56 and 51 percent. Long-term cost ranked a distant fourth among reasons to buy used, well behind price motivations.

The larger the fleet, the less likely its manager is to expect used machines to deliver lower life costs. Diverse fleets spread over a lot of geography make it expensive to maintain aging machines consistently enough to be reliable.

Materials producers are the most likely types of companies to buy many machines used. They were also most likely to note productivity as a reason to buy new, but only a third of them considered the long-term cost of new machines to be low. Perhaps operating in the limited space of a quarry or plant with fewer types of equipment helps materials producers milk used-machine bargains.