The Advantages of Rebuilding Equipment

Anyone who owns or manages heavy equipment eventually faces this question: is it better to rebuild or buy new equipment? Getting the best value out of your equipment is tricky, but rebuilding can be better for your bottom line and overall efficiency.  

The Advantages of Rebuilding Equipment

Savings

Depending on the type of equipment you want to rebuild, a refurb can offer savings up to 50% – 65% compared to buying a new machine.  Additionally, the price of a refurbishment can typically be deducted from your taxes because it increases resale value. A refurbished asset can be recapitalized on a depreciation schedule at half the value of a new machine. 

Engines

If your equipment was manufactured before 2015, it likely has a Tier 3 diesel engine. If you purchase a new piece of equipment, you’ll be getting a machine with a Tier 4 engine regulated by the EPA (Environmental Protection Agency). While Tier 4 is better for the environment, purchasing a new piece of equipment can increase your carbon footprint, too. 

Refurbishing a Tier 3 engine can save you money over time. They don’t require DEF (Diesel Exhaust Fluid) fuel and may use less fuel than Tier 4 engines. They may also require less regeneration downtime and less maintenance because they have fewer sensors. 

Check out this article for more information about engine rebuilds. 

Timeframe

Many maintenance teams can rebuild an engine in fewer than 20 weeks. If you purchase a new machine, there can be a 12-18 month waiting period. 

 

Warranty

Most refurbishment programs offer a 1-year warranty, similar to the manufacturer’s warranty on a new piece of equipment. 

Rebuild components

During a refurbishment, your maintenance team will change out all of the major (and most of the minor) components of the machine. They will perform calibration and setting adjustments after replacing components. The finished product is a newly revamped version of your machine that will run like new. 

 

If you are interested in learning more about the specifics of a re-build, check out our Rebuilds page!

Have additional questions? Contact us!

 

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