Is It Better to Buy New or Used Telehandlers for Your Business?

Introduction

When it comes to acquiring a telehandler for your business, one of the biggest decisions you'll face is whether to buy new or used. Each option has its own set of advantages and considerations, from cost savings to reliability and resale value. In this blog, we’ll explore the pros and cons of buying new versus used telehandlers to help you make an informed decision that aligns with your business needs, budget, and long-term goals.

1. The Pros and Cons of Buying a New Telehandler

Pros of Buying New

• Latest Technology and Features: New telehandlers come equipped with the latest technology and advanced features. For example, modern JLG telehandlers often include innovative safety systems like Load Stability Indicators (LSI), advanced hydraulics, and improved fuel efficiency.

• Full Warranty Coverage: Purchasing a new telehandler means you benefit from the manufacturer's warranty, which typically covers parts and labor for a specified period. This reduces the risk of unexpected repair costs and provides peace of mind.

• Greater Reliability: New equipment is less likely to suffer from mechanical issues or breakdowns. This reliability means less downtime and fewer interruptions on the job site, ensuring maximum productivity.

• Customization Options: When buying new, you have the flexibility to choose specific features, attachments, and customizations that best suit your operational needs.

Cons of Buying New

• Higher Upfront Cost: New telehandlers generally have a higher purchase price than used models. This can be a significant investment, particularly for small businesses or those operating on tight budgets.

• Longer Delivery Times: Depending on the model and customizations, new telehandlers may have longer lead times before delivery. This delay could affect projects that need equipment fast.

2. The Pros and Cons of Buying a Used Telehandler

Pros of Buying Used

• Lower Initial Cost: The most apparent advantage of buying a used telehandler is the cost savings. Used telehandlers can be significantly cheaper than new models, freeing up capital for other business expenses.

• Slower Depreciation: Used telehandlers have already gone through the steepest part of their depreciation curve, meaning they retain their value better over time.

• Immediate Availability: Used telehandlers are usually available for immediate delivery.

• Proven Track Record: With a used telehandler, you can often research its performance history or even obtain the specific machine’s service records, allowing you to assess its reliability and suitability.

Cons of Buying Used

• Higher Maintenance and Repair Costs: Used telehandlers may require more frequent repairs and maintenance due to wear and tear, which can add up.

• Limited Choice and Customization: When buying used, you are limited to the specifications and features of the available inventory. Finding a model that perfectly matches your needs might be more challenging.

• Uncertain History: If the service records are incomplete or unreliable, you might end up purchasing equipment with hidden issues leading to unexpected breakdowns and additional costs.

• Potential for Shorter Lifespan: A used telehandler will have a shorter lifespan, especially if it has been heavily used in the past. This reduced lifespan can result in earlier replacement and additional capital expenses.

3. Factors to Consider When Deciding Between New and Used

Assess Your Budget and Financing Options

• Evaluate Your Budget: Determine how much you can afford to spend on a telehandler, including any financing options available. If your budget is tight, a used model might be more appealing.

• Explore Financing: Many dealers offer financing for both new and used telehandlers. For example, in partnership with Watsons Equipment, JLG Financial and Mazo Capital Solutions provide flexible payment plans, which can make purchasing a new telehandler more manageable. It can also be the difference between buying new vs buying used.

Consider the Equipment's Intended Use

• Frequency of Use: If you plan to use the telehandler frequently and for demanding tasks, a new model might be more cost-effective in the long run due to its reliability, warranty, and lower maintenance costs.

• Specific Project Needs: For specialized projects that require the latest technology, such as precise load handling or advanced safety features, a new telehandler may be the better choice. If your needs are more general, a used telehandler might suffice.

Evaluate the Total Cost of Ownership

• Upfront vs. Ongoing Costs: Consider both the initial purchase price and the ongoing costs, such as maintenance, repairs, and fuel. New telehandlers might have higher upfront costs but lower ongoing expenses, while used telehandlers could be the opposite.

• Resale Value: Think about the resale value of the telehandler. A well-maintained new telehandler may retain its value longer than a heavily used one, providing better returns when it's time to upgrade.

4. Where to Buy New or Used Telehandlers

Authorized Dealerships

• New Telehandlers: Authorized dealers like Watsons Equipment offer a wide range of new JLG and SkyTrak telehandlers, providing expert guidance, full warranty coverage, and support services.

• Used Telehandlers: Many authorized dealers also sell certified used telehandlers, offering a balance between cost savings and quality assurance.

Online Marketplaces and Auctions

• Online Marketplaces: Platforms will often list both new and used telehandlers, allowing you to compare models from various sellers.

• Auction Sites: Auctions can be a great way to find used telehandlers at competitive prices. However, be aware of the risks, such as limited inspection opportunities, uncertain histories and condition.

5. Tips for Making the Right Decision

Do Your Research

• Compare Models and Prices: Research different models, brands, and prices to understand the market and what you should expect to pay for a new or used telehandler.

• Read Reviews: Look for reviews from other businesses to learn about the performance and reliability of specific telehandler models.

Inspect Before You Buy

• Thorough Inspection: Always inspect used telehandlers thoroughly before purchasing. Check for signs of wear and tear. How does it run? How does it sound? How does it feel?

• Hire a Professional: Consider hiring a professional inspector to evaluate a used telehandler’s condition, especially if you’re unfamiliar with the equipment.

Consider the Long-Term Impact

• Think Long-Term: Consider how long you plan to use the telehandler and the total cost of ownership over its lifespan. A new telehandler might be a better long-term investment for frequent use or demanding tasks.

• Plan for Future Needs: Think about your future business needs. Will a used telehandler meet those needs, or will you outgrow it quickly? Investing in a new model might provide more flexibility as your business grows.

Conclusion

Choosing between a new or used telehandler depends on your specific business needs, budget, and long-term goals. New telehandlers offer reliability, the latest technology, and comprehensive warranty coverage but come with higher upfront costs. Used telehandlers provide immediate cost savings and slower depreciation but may require more maintenance and have a shorter lifespan. By evaluating your needs, budget, and total cost of ownership, you can make an informed decision that best supports your business’s success.

For a wide selection of new and used telehandlers, visit Watsons Equipment. Our team is ready to help you find the perfect telehandler for your needs!