NEW OR USED? WHICH SHOULD YOU CONSIDER FOR YOUR NEXT BOOM TRUCK PURCHASE?
It takes a long time to gain all the experience needed to operate a business. You’ve heard the expression “I wish I knew then what I know now”. What advise do I take? What advice to throw away? I have 30 years’ experience that tells me the only thing that stays the same, is change. Things always change, always will.
REMEMBER THE TIME
Making a boom truck purchase is one of those things that will always change. Let’s look back at recent history for an example. If you were looking to purchase a new boom truck between 2008 and 2012 why would you even consider a new boom truck? The United States was mired in one of the biggest economical disasters next to the great depression. Even 2nd and 3rd generation companies were going out of business. Naturally, if businesses were going under their equipment was either repossessed or sold for fractions of what it was worth. With construction and building starts at unheard of lows, anyone who needed a boom truck made off like bandits.
DECISIONS…DECISIONS
Now fast forward to today. Should you buy new or used? While there was lots of fine boom trucks available between 2008 and 2012, all that equipment has been absorbed. To add to it, there were precious few new boom trucks produced between 2008 and 2012 because most companies bought up the fine used surplus boom trucks available. So, today your choice is simple but the opposite of 7 years ago.
New is the way to go, because used doesn’t exist.
I get calls every week for used trucks. I usually help people understand why their options are limited to new. Even though they don’t want to believe me I provide them with a new boom truck proposal. About a month later I’ll get a call back and the customer has found what I said to be true and we proceed with the new purchase.
NEW OR USED?
So, is it cheaper or more expensive to buy new? Let’s say you go and purchase a used boom truck for $150,000. A new one costs $300,000 for argument sake. Any used boom trucks available to are priced high because of the laws of supply and demand. That $150,000 is really a $85-$90,000 boom truck prior to the economic downturn. IF financed or leased it would cost you more on a monthly payment than new. New will allow you to get an 84-month term while used is likely more like 36. Secondly the used interest rate is generally 1.5-2% higher than new. The used boom truck is……………., well used. No mater how good it is, it will always be used. Therefore, there will be repairs. Repairs mean downtime. Once you take the shorter term of used, add the additional interest because of the higher rate, factor in the cost of repairs and loss of use, used costs more monthly.
Now, there are exceptions to every rule, but generally speaking right now in today’s market used will cost you more to buy than new.
