Across Nigeria, Ghana, and Côte d'Ivoire, the second-hand excavator market is roughly four times the size of the new-equipment market by unit volume. Most contractors default to used because the upfront price is 30-50% lower. But the real Total Cost of Ownership picture is more nuanced — and often flips by year three.
The 5-year TCO model
We modelled a typical 20-ton mid-class excavator running an average of 2,000 hours per year in Ghana. Three scenarios: brand-new, certified refurbished (5,000-8,000 hours at purchase), and high-hours used (12,000+ hours).
| Year | New (USD) | Refurbished (USD) | High-hours used (USD) |
|---|---|---|---|
| Acquisition | 180,000 | 95,000 | 55,000 |
| Yr 1 fuel + service | 28,000 | 31,000 | 38,000 |
| Yr 2 fuel + service | 29,000 | 34,000 | 45,000 |
| Yr 3 fuel + service + major repair | 30,000 | 55,000 | 75,000 |
| Yr 4 fuel + service | 32,000 | 42,000 | 55,000 |
| Yr 5 fuel + service | 33,000 | 44,000 | 60,000 |
| Yr 5 resale value | (95,000) | (35,000) | (8,000) |
| 5-year TCO | 237,000 | 266,000 | 320,000 |
Used isn't cheaper over 5 years
Our model shows new excavators are 11% cheaper over 5 years than certified refurbished and 26% cheaper than high-hours used. The exception is buyers with sub-3-year project visibility, where the lower upfront cost wins on cash terms.
When used IS the right choice
- Project duration under 3 years — you exit before the major-repair year
- Constrained capex with no financing route to a new-equipment loan
- Specific older-generation parts compatibility with existing fleet
- Light duty cycle (under 1,500 hours/year)
When NEW is the right choice
- 5+ year project horizon or ongoing fleet build-out
- Heavy duty cycle (2,500+ hours/year)
- Access to manufacturer-backed financing (SANY Capital, JCB Finance, etc.)
- Need for warranty coverage and predictable service costs