As your business grows, you would need to add to your infrastructure. New machinery is needed to add more power to your capacity and boost efficiency. In such circumstances, you have to choose whether to invest in a new machine or buy second-hand machinery. A general conception is that new equipment is easily available, easy to maintain, and more efficient. However, it may not be the best choice every time to invest in second hand industrial machinery.
The decision must be taken considering all influencing factors such as cost, urgency, purpose, and many more. Businesses are increasingly inclining towards the purchase of used equipment for their low cost and easy availability. These are proving game-changers for many enterprises, especially small businesses or new entrants who do not have enough capital to invest.
- Buying and selling used machinery
In the present day and age, there are plenty of options to buy or sell your used equipment. You can explore all the options and pick one that provides the most profitable deal. Some options are:
- Industry auctions
Businesses often use industrial auctions to sell a larger inventory in a shorter time. You choose this option if you seek to expand your equipment inventory at a low cost. As sellers are looking for cost coverage, you can get machinery at a lower cost.
- Specialized dealers
Dealers of equipment are often specialized in a specific industry. They are the easiest and most trusted sources of used machines. Some dealers also handle transport and setting up. They also offer limited warranty and financial services.
- Online markets
The Internet provides a marketplace for everything, including used machinery. You can find authorized suppliers and even auction platforms online.
- Benefits of investing in used industrial machinery
You buy industrial machinery after careful contemplation and a detailed tradeoff between new and used equipment. Considering the cost you may save and the money you would earn by getting it in place and functioning sooner, often makes second hand industrial machinery a winner. Here are some enticing benefits you can draw from used equipment.
- Low cost
Barring a few cases, purchasing used machinery costs much lesser than a new one. This is true even if you are looking for an equipment piece. The difference between their price can range from thirty to seventy percent. This wide range of price difference is primarily based on the quality and overall condition of the equipment.
- Low lead time
Lead time is also a common concern when adding equipment to your inventory. Machinery dealers often face difficulties such as shortage of manpower for installation, shortage of spare parts in stock, delays in shipping, etc. On the flip side, used machines are mostly available immediately. Also, if you can find them in your vicinity, it will further reduce the delay and shipping cost. Getting a machine timely can mean the difference between success and failure of a project or critical move for business expansion.
- Depreciation and value
The depreciation of industrial equipment is highest in the first year of its sale. The value of the equipment stabilizes after it is depreciated by twenty to forty percent. This means the value of the second hand industrial machinery you have purchased is likely to stay the same for the next few (generally five) years. It also means you can get a higher resale value from it.