Knowing how much capital to invest when buying a used dump truck is vital in maintaining the cash flow of any business. Most construction companies with a small amount of capital must be creative in managing money in their every-day operations and must know how to balance expenditures against income. When purchasing a dump truck for the company, a decision must be made as to whether the business should purchase a new dump truck or a used dump truck. Purchasing a new model requires spending a large amount of capital as these vehicles are very expensive.
If purchasing a new version is not feasible because of the significant impact it might have on the overall business operations, the next option would be to purchase a used dump truck to satisfy the business needs. It then becomes a priority to determine the reasons for buying a used dump truck. Following are few of the possible answers.
Higher Cost-to-Benefit Ratio
As a business owner, it is important to develop an economic decision-making strategy to override the capital expense concerns by the benefits of purchasing a dump truck. With the rapidly increasing dump truck industry, it is a wise idea to buy a used dump truck because it has a higher cost-to-benefit ratio. The price of one of these trucks is much less when compared to a brand new one and the used version undoubtedly still has many years of serviceable life to provide.
Wise Money Saving Strategy
Purchasing a used dump truck will help the company save money on this expenditure since it is more economical to purchase a used version rather than a new version; however, it is imperative that a visual inspection of the truck be made to look for any signs of prior damage. Minor damage is nearly insignificant; more major damage could cost more for repairs than perhaps its useful value.
Repairs and maintenance on a used dump truck can cause financial problems further down the life expectancy of the truck. It might be a better deal to buy one of these vehicles from an owner rather than a dealer because it can usually be purchased for a lower price. If the company wants a warranty on the vehicle to minimize maintenance costs, then the preference would be to purchase a used dump truck from a dealer because they usually offer a warranty.
Increased Fuel Mileage
Fuel is essential in the operation of a dump truck. With today’s advanced technological designs, used dump trucks are engineered to have efficient fuel mileage. The modern design of this truck allows increased airflow to reduce resistance, which significantly reduces fuel consumption while being driven.
There are many reasons to buy a used dump truck as opposed to a new one. A reconditioned truck can help save money and minimize capital expenditures over a period of time. Aside from these benefits, there should also be decreased maintenance costs provided that the vehicle being purchased has been properly examined. Buying a new dump truck requires a longer time to recover the capital expenditure. Purchasing a used dump truck might be the wisest decision a company could make and keep everyone happy all the way to the bank!