Financial advice is designed to make you spend less, save more, and invest carefully. But sometimes the best investment you can make doesn’t involve dollars at all—it involves other people’s castoffs. Here are compelling reasons why industrial equipment should be bought second-hand rather than brand new.
Used Industrial Equipment Is Less Expensive
A brand-new machine from a manufacturer is going to be the most expensive on the market. On the other hand, used industrial equipment has already depreciated, so it will cost much less. You can save up to 30% or even 50% off the new price by just waiting for the right deal to come along—especially if you buy from a nationwide dealer. This is because nationwide dealers have better prices due to their large inventory of goods. So they can afford to be flexible with their prices.
Used Industrial Equipment Is Just As Good
Many industrial machines have a very long lifespan of 15 or 20 years or more—and then they’re often resold for parts or refurbishing. That means plenty of used machinery still has decades of work left in it, so buying brand-new means paying top dollar for something that’s already losing value each day on the open market. Newer isn’t always better!
There are ways to tell if the equipment is still good. Look out for a manufacturer’s sticker in a corner or a serial number that falls into the range of numbers listed on the company website. Also, press down on any rivets or screws to see if they’re loose—if so, it means there might be rusting inside the welds which will destroy them sooner rather than later. Finally, try turning knobs and switches with your fingers—they should feel tight and secure.
Used Industrial Equipment Often Comes With Extras
Many factories and other manufacturers keep extra parts around for years just in case they need a replacement part down the road—and some will even sell those without any questions asked. You can get things like cables, control panels, tires for heavy equipment, and even whole motors.
Used Industrial Equipment Increases Tax Deductions
If you have to upgrade or replace part of your factory’s machines, then that money isn’t taxable because it falls under capital investment. But if you choose to buy brand-new equipment instead of secondhand, then every year after that point the depreciation would also fall under capital investment. That means all those yearly tax returns are taxable—meaning big losses for your company’s bottom line!
Used Industrial Equipment Is Easy To Dispose Of Later On
If you buy brand-new equipment, it’s much harder to get rid of when the time comes. Many companies will offer to take old equipment off your hands—but they only want certain types. And usually, there are specific models they’re looking for because those are the kind that isn’t working out well in the field. But if you bought used industrial equipment then you can sell that same machine to any company because there’s no manufacturer preference—so you’ll get a better return on investment (ROI).
Used Industrial Equipment Is Greener
New equipment means new materials and energy expended in production. But since some old machines are still running smoothly after two decades of service, buying used will only result in about half the energy consumption of a brand-new equivalent! That’s great news for industries that care about their carbon footprints, such as food processing plants and power companies—and for the environment in general.
Used Industrial Equipment Demands Less Insurance Money
New machines come with hefty insurances rates while older heavy machinery is exempt from them since some of their value has depreciated. This means instant savings anywhere between 5 and 20 percent for every machine you bring home.
Used Industrial Equipment Is Easy To Find
New industrial equipment is either difficult—or impossible—to find, depending on where you live and what kinds of factories you’re trying to buy from. But used machines are everywhere around the world! So if your local supplier doesn’t have the sort of heavy machinery that you need, then they can still help you look for it elsewhere. Plus, used industrial equipment shows up much more regularly than new machines so it’s easier to wait patiently for exactly what you want instead of settling for something inferior due to a lack of options.
Tying together all the points listed above, it’s clear that buying used industrial equipment is better in every way than purchasing new. The resale value of previously-owned heavy machinery holds up well over time—often keeping its value equal to or greater than what it sold for originally. So when you’re looking for equipment to improve your factory’s efficiency, don’t shy away from secondhand options.