Purchasing second hand machinery is becoming a lot more common in the industry. And why not? It always seems to be a much cheaper option. However many believe second hand equipment lacks in quality. We took a look at all the pros and cons to determine when second hand is a no-go and how to make the final decision.
Find Out How Much the Machinery Depreciates
Investigate the resale price of used equipment similar to what you want. For example, you can still fetch a good price for used forklifts from reputable companies, especially if they are maintained well. If something holds its value, it might be easier to buy it new. This avoids potential problems with the condition of second hand machinery, and you’ll get bonuses such as warranty as well.
Of course, some machinery depreciates much more rapidly. If this is the case for what you’re going to buy, it’s well worth looking into the used market as you are more likely to get a good deal.
How Common is the Equipment You Need?
Machinery is rarely a ‘one size fits all’ matter. Conveyor belts, pallet trucks, forklifts and many other types of handling equipment often have to be specialised to suit a specific warehouse. However, if your warehouse doesn’t have any significant height, width, or incline restrictions that will limit your choice of machinery, you will likely have some good options on the used market.
Weigh Up the Budget
There is no denying the main advantage of second hand machinery. It is cheaper. Much more so than buying new or specialist equipment. These days, companies are looking to cut costs and reduce budgets any way they can to increase the profits. The budget for new equipment may be tight. In this case, second hand machinery is a much more lucrative solution to keep in mind.
How Urgently do You Need it?
There is one other big advantage of second hand equipment vs new. It is already there. Often new items, especially for unique needs, take weeks to be manufactured and shipped to the required locations. Second hand equipment however can be collected or delivered as soon as the transaction is completed.
When You Only Need it Short Term
Second hand machinery normally requires more maintenance than new. It will also not be as valuable for as long, but is a more cost-effective solution for short term use.
Always Test it Before Buying
Some sellers may omit important defects with the equipment you’re buying. Furthermore, if you’re shopping online, be especially aware of scammers. With this in mind, make sure to meet the seller and see the equipment with your own eyes before the purchase. If a deal sounds too good to be true, it usually is!
Featured Image: © Garett Mizunaka (Unsplash)