New Versus Used – Major Factors To Consider When Purchasing Industrial Equipment

New Versus Used – Major Factors To Consider When Purchasing Industrial Equipment

Posted by Ali Wade on Jul 17th 2020

When an older piece of machinery dies, or your business operations require the addition of another piece of equipment to the mix, your initial reaction will likely be to purchase equipment from a supplier brand new. However, there are many reasons to buy used equipment rather than new machinery.

1. The most compelling reason for buying used machinery: It’s more cost-effective. We all know that every penny counts when it comes to your business operations. Many people look to save where they can but are hesitant to sacrifice quality.A great compromise is to consider a used piece of equipment that has been thoroughly inspected by an expert in the field – this will provide the reliability you’re seeking at an affordable price point.

2. It’s faster. When purchasing new equipment direct from a supplier or equipment dealer, it’s likely that you’ll be faced with long or inconsistent lead times due to shipping delays, not having certain parts on hand etc. Because used equipment is almost always available immediately, delivery and lead times are much faster than it would be if you purchased new. From order to installation the average lead time for used machinery is roughly three weeks whereas the typical lead time for new industrial equipment can be up to six months.

3. Greater Resale Value. New equipment has been known to drop as much as 40 percent in value over the course of the first 12 months of purchase. When purchasing a well-maintained piece of used equipment, you’re likely to experience a slight depreciation over the course of the life of the machine but you’ll retain a resale value for almost as much as you paid for it initially all while avoiding a large initial equity loss.

No matter the industry – buying used industrial equipment could very well be the right decision for your business operations. It’s important to find a credible used equipment dealer or reseller with a strong and respectable reputation. Be sure to research all your options and when possible, discuss the opportunity for equipment inspections and view the equipment in person prior to purchase.