ForConstructionPros.com

In its relatively short lifespan, horizontal directional drilling has gone from boom to bust and is now making its way back up again. The used equipment market for drill rigs has followed this cycle. Although the overseas market is absorbing a large portion, there are still used units available. So, how do you know if purchasing a used drill rig is a good idea for your operation?

"Used units can be a good fit for a contractor who does an occasional bore," says Klane Kirby, Astec Underground. "Typically, the used buyer is someone who does very few bores a year and can't justify a new purchase."

Previously owned drill rigs can also be a good fit for startup contractors with limited funds. "You're able to get in at a lower cost with a used system," notes Richard Levings at The Ditch Witch organization. "But some of that depends on if you have the ability to purchase used support equipment.

"If you need a certain size unit and you don't have the funds to purchase a totally new system, then you will have to look at used components within the system, which include trucks, trailers, vacuum excavators, etc.," he continues. "The piece of equipment that is purchased used depends on which piece is available, and affordable."

By affordable, Levings means you need to evaluate the true costs of the used equipment. "You don't want to have to turn around and spend a large sum of money to repair it or bring it up to working condition," he explains. "You need to evaluate which piece of that system is the least risk. If you have limited funds and spend all your money on that system, you don't have any cash to cash flow the business or make repairs you didn't foresee."