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The Benefits of Buying or Leasing Used
Cat® Equipment
New or used equipment — which is better? The answer is it depends. Every business is different, and knowing how long you need equipment for and how much you can afford is crucial to the decision-making process when you need machinery or attachments.
Acquiring new Cat® equipment typically means you get a dependable machine equipped with the latest features and technology, but it comes with a price. On the other hand, used equipment is a cost-effective alternative to buying new and could be the best option for your business.
Let’s dive into the many benefits of buying or leasing used Cat equipment for your business.
WHY SHOULD I CHOOSE USED EQUIPMENT?
Used equipment offers financial benefits on top of the performance, durability and dependability you expect from new machinery, making it a worthwhile choice to lease or buy.
Benefits of Used Equipment
Here are the advantages of buying or leasing used Cat equipment:
You Can Purchase Equipment at a Lower Cost Than New
Price is a leading factor in why companies choose to buy and lease used equipment. Used machinery is typically less expensive than new equipment and choosing a more cost-effective option, like used equipment, can allow you to allocate budget for other business needs.
It's important to remember that while the purchase price of a used machine may be attractive, be sure to closely evaluate the machine's condition before you complete your purchase to ensure you get the most value from your investment.
Discover more ways to save on heavy equipment.
Avoid the Initial Depreciation That Comes With New Equipment
The price of brand-new equipment usually accounts for the machine's newness, and as soon as you use that machine, its value will depreciate. The greatest decrease in value occurs in the first 12 months you own it.
Depending on the age of the used machine you are looking at, it's likely to have already passed its initial depreciation by the time you acquire it. This means you can usually buy or lease used equipment for a lower price than a new machine.
Well-Maintained Used Equipment Typically Retains Its Value
Proper maintenance helps you keep your used equipment in peak working condition. Cat equipment is built for durability and maintains its market value better than other brands.
We understand the importance of having reliable machines and quality replacement parts. Prioritizing regular inspections and repairs with preventative maintenance is a great way to keep your Cat equipment in good condition and retain its value.
Buying Used Equipment Offers Tax Benefits
According to Section 179 of the IRS's tax code, businesses can deduct the cost of qualifying used equipment from annual taxable income. This benefits businesses that want immediate access to new machines without tying up too much working capital. Contact your tax professional to find out what tax benefits may be available to you and your business.
Expand Your Fleet Within a Limited Budget
Used equipment can be a cost-effective way to expand your fleet without straining cash flow. The lower upfront cost can help you preserve cash flow for other business needs.
Explore used Cat equipment from Cat Financial or contact your local Cat dealer to see what's available.
HOW TO ACQUIRE USED EQUIPMENT
Similar to new equipment, you can acquire used machinery by paying in full with cash, financing with an equipment loan, leasing or renting. Consider how much you can afford and your equipment needs before you decide. Use these equipment financing calculators to crunch your numbers.
Cash purchase: Buying with cash is a great option for long-term equipment needs if you have the funds available. Paying in full for used equipment enables you to gain ownership immediately and pay the machine price without additional fees.
Used equipment loan: Consider a loan if you have long-term equipment needs but want to preserve cash flow. Financing used equipment allows you to build equity and spread out the total cost over a specific amount of time.*
Used equipment lease: Used equipment leasing is an ideal solution if you need equipment for a specific project or limited time. Leasing allows you to try the latest features in equipment before committing to ownership, plus other benefits.*
Rent used equipment: Used equipment rental is the best option for very short-term equipment needs because you only pay for the equipment for as long as you need it.
*Terms and conditions apply. Not all customers will qualify. Talk to your local Cat dealer for more information.
Compare used equipment financing options.
PREVENTIVE MAINTENANCE AND PROTECTION OPTIONS FOR USED CAT EQUIPMENT
All heavy equipment should be well-maintained to maximize its useful life. Completing preventive maintenance can help reduce the risk of unexpected failures that result in costly emergency repairs and unnecessary delays.
The Cat Customer Value Agreement (CVA) by Cat Financial makes it easy to keep your Cat equipment running at peak performance with a personalized preventive maintenance schedule that works for you. Explore the benefits of the Cat CVA by Cat Financial.
Even the best built machines will eventually require repairs. An Equipment Protection Plan (EPP) provides coverage beyond the standard warranty to protect you from unexpected repair fees that result from covered manufacturer and material defects. With multiple levels of coverage options to choose from, you can easily find the right fit for your business. Some used equipment may still have an active warranty or may come with extended protection. Talk to your local Cat dealer for coverage details. Learn more about Cat EPP.
Best of all, a Cat CVA by Cat Financial and EPP can be packaged with your machine for one convenient monthly payment.
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The Benefits of Equipment Donation
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Options for Aquiring Heavy Equipment
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Cat Equipment Financing Requirements
Our equipment financing requirements aren't complicated. See the four key factors we consider when you apply to take advantage of Cat equipment financing.
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