Reasons to Buy Used Industrial Equipment and Machinery
There are two options for businesses seeking to buy industrial equipment and machinery. Their first option is to buy new ones and the other is to buy used equipment. There are many businesses who always want new equipment thinking that they are more efficient, easier to find, and can be maintained cheaply. New industrial equipment and machinery can be very expensive and this is the reason why many businesses are not able to pursue their plans of purchasing new ones. So, these business owners use their other option of purchasing used equipment.
The good thing is that even if equipment or machinery is used, most OEMs design their products to be long lasting. Even if equipment has been used for years, there are many businesses that sell their used but still very new industrial equipment and machinery due to plant closures or large businesses changing their production strategies. These businesses sell their used equipment for a small fraction of their original cost.
There are some factors that you need to consider when purchasing your used industrial machinery and equipment which can help mitigate the risks associated with buying used equipment. We will look at the factors to consider when buying used equipment and machinery after we have looked at the benefits of doing so.
One of the best benefits of buying used industrial equipment and machinery is that it is a lot cheaper than buying a brand new one. The price difference is very great and depends on the quality and condition of the used equipment.
If you purchase new equipment from an OEM or machinery dealer, you can be faced with long lead times. The reasons for the long lead times could be the OEMs not having parts or materials on hand, shipping delays, not having enough staff to meet deadlines, and a lot more reasons. However, used industrial equipment is readily available. You can have it and use it quicker than if you purchased a new one. The lead time for used equipment is only a few weeks but it will take up to six months lead time for brand new equipment.
Remember that equipment and machinery depreciation is highest in the first 12 months of a sale which brings the price really down. The value of the machinery is the same for at least five years. Because of the lack of depreciation after the first year, used industrial equipment can be resold for the same price it was purchased on the used market.
Here are the things to consider when buying used industrial equipment.
Ensure that you are buying from a reputable source. Reading online reviews will help.
Make sure that the used equipment you are looking at is the one advertised and something that is working properly.
if you bring a machine operator to examine the equipment, he can find out signs of machinery maintenance.