The new versus used dilemma comes up a lot when shopping for cars, houses, furniture, and even clothes. Depending on the commodity we are comparing, there are different pros and cons to consider, and mind you, new does not always win.
However, when it comes to industrial equipment, there are some misconceptions floating around, often making it seem like it’s either new or nothing.
Let’s clear up some myths right away:
You can’t pay for used equipment in installments
MYTH: Find used equipment dealers who offer financing options for those who are in good financial health. This can be super useful for your company’s cash flow, especially in the start up stage of your business. However, if you do buy directly from another company without going through a dealer, you can find it more difficult to convince them to allow for a longer payment plan.
There’s no warranty on Used Equipment
MYTH: While every dealer will have its own way of doing things, often depending on the specific piece of equipment you are purchasing, many will offer a warranty. If not included in the purchase price, ask if it’s an option to purchase an additional one. With some research, sometimes you will find that the original manufacturer’s warranty could still be valid for any broken parts meaning that you can get it fixed for free or at least cheaper than you thought.
Used Equipment Doesn’t Do the Job as Well
MYTH: Right away when people hear “used,” they think old. That can be the case but it doesn’t have to be. There are multiple reasons why a certain piece of equipment can be for resale, from a company going out of business, it didn’t fill the role they thought it would, they changed their production model, or they quickly needed something bigger. Some items are only used a few times, while others have certainly been used for years and years. You might find that the quality of the older models is actually better than some of the newer ones with the “bells and whistles” that you wouldn’t even end up using.
And while we’re on this topic, do you want to hear some truths are well?
Used Equipment is Generally Cheaper
TRUE: While sometimes the durability of the materials from which the older models are made from can make them quite expensive, in general you’ll find that they are more affordable options than brand new ones purchased straight from the manufacturer.
Used Equipment is Easier to Fix
TRUE: Though this again is a generalization which can be different depending on the kind of equipment, older equipment based on mechanical and simple electronic systems are often easier to fix than the newer computerized versions. An easy comparison is that of a manual transmission versus an automatic one. Manual might be simpler technology and a bit more difficult to drive, however, if the transmission is out, is a much more affordable fix. Disclaimer: if the piece of equipment is extremely rare and very old, it could actually be more expensive during repairs if the parts are no longer available and the technicians are few.
As you see, there are many myths out there surrounding used equipment, often influencing our decisions once we get to the point of choosing. However, once all is put into consideration, you might find that used is actually a better choice for you and your company when factoring in the price, options, and value.
If you are still on the fence about the perfect fit for you and your company’s needs, ask the advice of others in the industry. They might have a favourite model or brand which has served them well and they could recommend to you.