When it comes time to replacing machinery, many businesses look at buying either new or used equipment. This blog will explore the benefits or disadvantages of each choice.
Advantages of buying new
The obvious advantage of buying new equipment is that you are the first person to use it. If you plan on keeping the equipment for a long time, so as to maximise your investment, then buying new will be the best choice, as you will be able to enjoy all the immediate benefits of a new machine, as well as have a long warranty in case anything goes wrong. Also, by buying a new machine, rather than one that is already a few years old, you’re better able to take advantage of new technology by acquiring the latest version, as well as having reduced maintenance costs from having a machine with newer components. By buying new equipment, you also have the option of selling or trading it in later for a greater return if you decide to then upgrade it, likely reducing the cost of purchasing the newer model.
Disadvantages of buying new
The main disadvantage of buying new equipment is the cost. Also, due to the depreciating value of items, once you purchase it and start using it, its value will have already decreased. While many businesses will factor this into their running costs, some smaller companies may not be able to justify it. You’ll also need to pay more in other costs, such as insurance, in order to ensure that your investment is protected in case something goes wrong.
Advantages of buying used
For those businesses with tight budgets, buying used equipment can be an incredibly cost-effective way of getting the equipment you need, without spending too much money. If you don’t need the latest advancements in a machine and could get by with something that’s a few years old, then purchasing used equipment can be a great way to get what you need without spending lots of money on it. One major benefit of buying used is that you can often get great deals on equipment which is almost new or which may have some cosmetic or minor flaws in it, greatly reducing the cost.
Disadvantages of buying used
One of the main disadvantages of buying used equipment is that it may not come with a manufacturer’s warranty that will cover anything that goes wrong. It will also have a reduced lifespan given that someone else has already used the machine. You may also not be able to take advantage of tax incentives available for the purchase of new equipment, meaning the difference in cost between new and used might be less dramatic than you think.
Whichever path you take, it’s important to know the advantages and disadvantages of buying new vs used equipment. AusLift are experts in the hire and sale of new and used machinery, so contact us to discuss all your access hire and crane equipment needs.