Businesses and individuals may assume that buying the newest equipment and machinery available is the best option. However, more experienced buyers know that’s not always true. There are many benefits and drawbacks to buying new or used equipment. For that reason, to make sure your new or used equipment purchase will best suit your (organization’s) needs, we always recommend assessing a project’s requirements.
Below, we weighed the pros and cons of buying new and used equipment.
- The primary benefit of buying new equipment or machinery is that it will typically possess the newest features available on the market
- Features only available to new equipment may give you a minor competitive edge that enables more productivity
- New equipment and machinery typically comes with customer support and warranty plans
- Buying new equipment is normally the most expensive option
- You may need additional equipment, attachments or maintenance, repair and operations (MRO) parts – your budget may not be able to accommodate purchasing new equipment for all your project's needs
- Buying new may mean long wait times for equipment orders; depending on your production schedule a long wait time may cause serious loss
- Purchasing used equipment is less expensive than purchasing a comparable piece of equipment at its new value
- In fact, used equipment typically sells for 50 to 60 per cent of its new value
- Buying used equipment gives you or your organization flexibility. If you have a temporary increase in demand that requires a specific type of machine, you can purchase it quickly at a lower price point.
- Used equipment may not have a warranty or customer support. Note: Some sellers may offer warranty. Also, so far as reselling the item does not void the terms and conditions of the manufacturer’s warranty, the item still may be covered if the warranty has not expired.
- You’re encouraged to assess the condition of the equipment. Due to the technical and trade skills involved, as well as any geographical distance, this isn't always easy or possible. Last week, our post offered some solutions to this problem.
For more information on trusted used equipment marketplaces, read:
- 4 Things to Consider When Selecting an Online Marketplace
- Top 3 Marketplaces for Buying Used Industrial Equipment