used equipment

Refurbished vs. New Equipment- What is Best for Your Business

Are you in the market for some new equipment? We know that making the investment for new equipment is not always feasible exactly when it is needed, not to mention it can also be very challenging to find the right piece of used machinery for your specific needs when the demand is there. Purchasing used machinery is the ideal alternative to buying brand new machinery or equipment, both of which typically come with a pretty hefty price tag. Although looking on the reverse end, purchasing used machinery can mean more maintenance as well as the risk of purchasing something that was not refurbished up to condition and safety standards.

Refurbished Equipment

What is refurbished equipment exactly? It is equipment that has been previously owned, inspected, and restored to a sellable condition. When you find yourself purchasing used machinery you can pocket savings that average 30 percent to 50 percent of the selling price for the same equipment in new condition and saving on the initial depreciation cost right when you walk off the lot.

A big key to successfully purchasing refurbished equipment is double and triple check how the vendor your purchased from defines “refurbished”. Did they dismantle the equipment and replace and parts that might have been too worn out? Did the company go through a thorough testing process after the equipment was reassembled to make sure that everything was working in great condition? Be sure to ask the right questions to the seller before jumping into a new purchase. Another thing to look for is if the vendor you are purchasing from has some experience in serving in your local community. Do they have good reviews online or has someone you know and trust referred them to you? This will give you an idea of their track record and if their products they are selling are good condition and safe for users.

Pros of Purchasing Refurbished Equipment

  • Purchase equipment at a lower cost
  • Depreciation Avoided
  • Holds better value
  • Get your equipment right when you need it
  • Enjoy lower insurance costs
  • Increases flexibility for other avenues where revenue is needed
  • Availability of equipment- greater selection
  • Cons of Purchasing Refurbished Equipment

  • Possible poor condition
  • Possible subpar safety
  • High repair costs if something breaks
  • No warranty
  • New Equipment

    New equipment is just that! The latest and greatest model. The equipment will be more efficient, have all the bells and whistles including all the safety and comfort features. Also, you have a lower risk of breakdowns and repairs. With all of that comes a price, and the price tends to be a very pretty penny. But with that pretty penny comes a peace of mind about the equipment’s history, use, or current state. You won’t have to be worried about starting your machine in the morning, if it’s going to work all day or if it’s safe for your employees to use.

    Another key here is to check into the company you are purchasing from. Make sure they are reliable, have been in the industry for some time, and check their reviews! What people say about them will give you great insight on what they’re selling and their customer service.

    refurbished machinery

    Pros of Purchasing New Equipment

  • Purchase the exact model you want that is tailored to your business needs
  • Repair costs are very low for a longer amount of time
  • Warranties to cover unexpected costs
  • Shows company’s professionalism
  • Enjoy lower insurance costs
  • Greater technology
  • Tax advantages
  • Cons of Purchasing New Equipment

  • Upfront costs are costly
  • High depreciation cost upfront
  • Return on investment
  • Long wait times to receive equipment- could be damaging to business
  • All things considered, buying used machinery makes more financial sense, it offers a greater return on investment, and you have access to a greater selection with availability. When purchasing new equipment, you are putting more money into it but you don’t have to worry about repair costs or safety and you’re offered warranties to keep them up to date and reliable for your company. Not to mention the tax advantages that come with it!

    Speed-Tech Equipment sells new and refurbished equipment, so whatever you’re looking for- we can help! Before you make a decision on which process is best for your needs, contact us to see how we can help!

     View our Collection of what we have in stock for new and refurbished equipment