Under $20,000 buys you two things: a small new machine, or a considerably more capable used one.
Both are legitimate. Which is right depends on what you need the machine to do and whether you can evaluate used equipment.
New Under $20,000
A narrow band. Generally the smallest 1-ton value-tier machines.
What you get: roughly 5–6 feet of dig depth, modest lift, basic specification, canopy only.
What to check:
- Engine make and model — common platform or proprietary?
- Auxiliary hydraulics plumbed?
- Parts availability and lead time
- Warranty terms in writing
- Actual specs, not marketing figures
Where it works: tight-access residential, interior demolition, landscaping, shallow drainage.
Where it doesn't: footings at frost depth in cold climates, utility burial at code depth, anything needing real lift capacity.
Used Under $20,000
A much wider field. At this budget you're looking at 2–3 ton name-brand machines with meaningful hours, or older machines with fewer.
The trade: more capability, unknown history, no warranty.
What decides it: the undercarriage. Tracks, rollers, idlers, and sprockets are the most expensive wear system, and a full replacement is a large share of what you're paying. Price it and add it to the purchase price — that comparison frequently changes the answer.
Also check:
- Slew bearing for play or noise
- Pins and bushings for slop
- Cylinder rods for scoring, and drift under load
- Whether it ran a hammer — hammer hours are the hardest hours a machine takes
- Whether auxiliary hydraulics are present
Get an independent inspection on anything significant. It costs a fraction of a bad purchase.
Which Way to Go
Buy new if:
- You can't evaluate used equipment confidently
- Warranty matters to your cash flow
- Your work fits within 1-ton capability
- You want a specific configuration
Buy used if:
- You can inspect competently or hire someone who can
- You need more depth or capacity than a 1-ton offers
- You value the parts network of an established brand
- The undercarriage checks out
Don't Forget the Rest of the Budget
A machine at the top of your budget with no money left for attachments is a machine that only digs.
Budget for:
- A thumb — the highest-value addition on most machines
- Additional bucket widths
- A coupler if you'll run multiple attachments
- Transport, if you don't have a trailer and a truck rated for it
Transport catches people. If you'd need to buy a trailer and a bigger truck to move the machine, that's a real cost that changes the math.
Is Renting Better?
Under roughly 15–20 days a year of use, renting frequently wins.
Run it honestly: purchase price divided by local day rate gives the raw break-even, then add delivery, attachment charges, and your time on the rental side, and transport, storage, and maintenance on the purchase side.
FAQ
What can I get new for at the low end?
Generally the smallest 1-ton value-tier machines. Verify current pricing.
Is used better at this budget?
Frequently more capability for the money — if the undercarriage is sound and you can evaluate it.
Will a 1-ton dig a footing?
In mild climates with shallow frost depth, potentially. In northern climates, usually not.
What's the biggest risk buying used?
Undercarriage condition, followed by slew bearing and hydraulic wear.
Should I finance to get more machine?
Depends on your cash flow and whether the extra capability earns. A machine that can't do your work is expensive at any price.
What about auction machines?
Cheaper, and you frequently can't inspect or run them. Higher risk.