If you are in the construction business then you will know how capital-intensive this business can be for equipment and vehicles . Which is why most construction companies with a limited amount of capital, get creative in managing their finances . For instance, they buy used dump trucks instead of buying new vehicles.
The company’s dump trucks are used to transport and deposit large quantities of materials and huge objects on jobs the company have acquired. Nowadays, most dump trucks are automated and the dumping work can be handled by just the driver .
Such vehicles are essential to the company, they literally are the business. But, dump trucks are an expensive capital investment , and buying new takes a long time to recoup their cost .
So, buying brand new dump trucks can tie up a great deal of capital expense. And, especially in the current economic recession , such expenditure is just not possible and would impact on the cash flow and operations of the business.
So, what does the shrewd business owner do ?
They buy good used dump trucks to run the business, and retain enough banked cash to tide them over until the next job payments come in.
New dump trucks can be very expensive. Vehicles could cost a company hundreds of thousands of dollars, and for a very large heavy dump truck, you could be looking at costs in the millions.
Some used dump trucks can be bought for around $3,500, depending on the size and type of truck. At the other end of the scale, a set of tires for a large truck could cost around £30,000. Sometimes, it could make more economical sense to purchase a used dump truck rather than to buy a new set of tires.
Buying used dump trucks could ease the burden on any temporary cash-flow problems of the business, but the reverse is true if you are not cautious. So, here are some tips for buying used vehicles.
A visual inspection is not always good enough. You should always try out the vehicle. Test all of its functions by test driving and running it through its paces .
After the test drive and functions is a good time to check for any leaks . When a vehicle has just been operating is when these types of defects tend to show up. Check the valves and hoses . Have a good listen to the truck when it is running for some time. Notice any unusual smells like burning oil or shorted circuits. If the vehicle is newly-painted, check for hidden rust patches .
Are all the controls working properly? Do the hydraulics sound right? Check the control display – is it fully functional? Expect minor defects in a used dump truck, that’s part of the reason for the low price. Anything you find incorrect that the seller has not revealed to you – use it to reduce the price.
Finally, you have to weigh up the pro’s and con’s of buying used dump trucks from either reputable dealers or from owners. You can get warranties from dealers, but not owners. However, if buying from an owner, you can find out a great deal more about the vehicle, and expect to pay a far lower price than at dealers.