One of the main questions business owners ask is "Does DEROTTO finance used equipment?". Financing used equipment is a primary part of DEROTTO Leasing. At least 90% of the financing DEROTTO puts in place is for used equipment. Much like 2009, the team at DEROTTO believes we are in a period where the demand for used equipment will be higher than the demand for new equipment.
Avoid Initial Depreciation
New equipment is no different than new cars in that the minute you drive it off the lot, it depreciates in value – as much as 20% to 40% in the first 12 months.
Just because a vendor is offering 0% financing for new equipment doesn't make it more affordable. Many times, the vendor inflates the prices of equipment to offset the 0% interest cost.
Holding the Value
Although used equipment has depreciated, it can hold its value if it’s well-maintained. When it is time to sell, it is actually possible to get close to what you paid if you sell at the right time. It is very important to keep a detailed record of all maintenance records for future re-sale value.
Knowing the History
When buying new equipment, it may have the uncertainty of potential future issues. Almost all equipment brands seem to have a “lemon” model. A positive aspect of used equipment is having the option to do a simple Google search and look at the reviews on that equipment to see if there are any potential issues with the certain make and model.
With COVID-19, one of the main issues DEROTTO has seen is when a business orders new equipment from the manufacturer the time from order to delivery can be months. Many manufacturers are backlogged. This can especially be a problem if you require the equipment quickly to meet the demands of a contract.
The global used equipment market is massive, to say the least. And that’s good news for buyers. That means more choice of equipment than any one brand could ever offer. Whether you’re looking for construction, transportation, mining, oil & gas, or farm equipment, there are literally thousands of items available for sale at any given time across Canada and the US.
DEROTTO has several lending sources that will finance used equipment. Many people are unaware that banks and credit unions will finance used equipment. DEROTTO has over 40 lenders in its network with about a third of them being banks or credit unions. All the banking and credit union sources DEROTTO works with will finance used equipment.