Purchasing used manufacturing equipment is a smart choice if the quality of the technology is not the most important deciding factor in the buying process.
Buying Used Saves Money
Purchasing industrial equipment fiscally makes sense because they cost significantly less than new counterparts. A machine that may cost upwards of $250,000 will cost possibly half that price when it has aged a few years. Ultimately, the savings leave plenty of wiggle room for maintenance, upgrades, and repairs if necessary. The money saved is then easily invested into other parts of the business such as hiring new personnel or purchasing manufacturing supplies.
Pay Attention To Asking Price
Buying used equipment means you should save a great deal of money, but in order to do so, you need to consider what a certain piece of machinery costs new. Of course, well known brands will still demand a higher price on the secondary market than a new import brand. Still, you need to weigh the value of what you’re getting and how much money you will actually save by purchasing used.
Used Machines Require Elbow Grease
Whenever you decide to purchase used machinery, you also need to take into consideration that the equipment will need some work. In order to produce quality products, you will need to invest some time and money into making the equipment function as new again. From fixing minor hydraulic leaks to retooling the machine, fixing what doesn’t work shouldn’t take too much effort on your part. Ultimately, it is best to retain an additional 10% of the asking price to help cover the costs of getting the machinery up and running.
Inspection Before Purchase Is Key
It’s crucial to know exactly what you’re getting yourself into, therefore, you will need to inspect the machine for flaws and malfunctions. If you can’t perform the inspection yourself, have someone else do it on your behalf. A used machine will possibly have multiple flaws, but that shouldn’t deter you from making the purchase. It simply means you need to leave room in your budget to address repair costs.
Align Expectations With Reality
It’s crucial that when you make the decision to purchase used equipment, you align your personal expectations with reality. A used machine will never work as well as a new machine would, but that doesn’t mean it won’t perform reasonably well or have a similar output. This also means being slightly more forgiving about certain flaws equipment may hide and understanding that what you purchase is in as-is where-is condition. Anything you discover after purchase is your responsibility without any help from the seller. From setting up the truck and riggers to hiring technicians and electricians, these are all parts of the used machinery buying process. However, considering that you will save up to 50% off of the brand new purchase price, these extra efforts are still worth it. It all comes down to making your purchase from a reputable company willing to work with you directly.
Financing Is Possible!
Financing is absolutely possible when purchasing used equipment, and most importantly, the depreciated value can also get written off as it would with new machinery. Getting used equipment is a great way to curb the overhead production costs of running your manufacturing business. Most importantly, it allows you to spread out the monthly payments associated with your equipment in a way that’s both affordable and manageable.
