Used vs New Equipment: Pros and Cons
Are you considering upgrading equipment in your business? Too often, business owners default to buying new equipment. Although there’s a time and place for new equipment, used equipment can provide the same benefits at a fraction of the price.
In this article, we’ll explore the pros and cons of new and used equipment, giving you the information needed to make an informed decision on your next purchase.
The Pros and Cons of Used Equipment
Used equipment comes with both pros and cons. First, used equipment is cost-effective. You aren’t paying full price for the equipment, as the item is not brand new. However, most pieces of used equipment are lightly used, meaning they operate the same as a new machine. Additionally, if your business is worried about obtaining an equipment loan or compromising cash flow, used machinery can be a great option.
In addition, used equipment allows you to extend your purchasing power. Maybe you can now buy two used machines instead of one new robot. This gives your business the ability to grow at a quicker pace. However, there are disadvantages to be aware of. For one, used equipment doesn’t always come with the same warranties as new machinery. Nevertheless, many used equipment providers offer some type of warranty at purchase.
The Pros and Cons of New Equipment
Like used equipment, new equipment leads to pros and cons. The first advantage is that new equipment can be customized to your business. From choosing dimensions to specific features, you have full control when you buy a piece of machinery new. Moreover, new equipment usually comes with extensive warranties and re-servicing options. This isn’t always the case with used machinery.
The main disadvantage of new equipment is the stiff price tag. New equipment can become expensive, especially if you customize it. This isn’t ideal for growing businesses and those with tight cash flow. Furthermore, new equipment can take months to be delivered to your business. If one of your machines breaks, downtime can become a real concern.
Making the Right Choice
So, which option should you choose? Although both used and new equipment have pros and cons, the right choice depends on what your business needs. Are you trying to save money or install a fully customized machine? Do you need the equipment now or six months down the road?
About IMS Supply: IMS Supply is a leading distributor of maintenance, repair and operations (MRO) products and services with facilities in East and West Michigan and Kentucky. Through our MRO Asset Recovery Program we stock hard to find parts and supplies from thousands of different manufacturers at prices up to 70% less than MSRP. Contact us today to find out how we can help your business.
