ADVANTAGES OF BUYING USED EQUIPMENT
It may be the preferred option to buy new assets for your business, we all like the thought of a new piece of machinery but there are many advantages to buying used equipment as well. Here are a few key points to consider –
You can purchase quality used machinery and equipment at a much lower cost to your business.
Buying new machinery & equipment is an investment that can have a significant impact on your company’s cash flow. Why buy new when you can purchase quality used Machinery & equipment at a much lower cost. It’s possible to save thousands over the cost of buying new machinery by choosing this option.
The price of new equipment & machinery has increased over the past several years, and with a few economic factors to throw into the mix, namely Brexit and a Global Pandemic – The availability of new machinery & equipment is difficult to source. It’s always nice to think about buying something brand new, but you don’t need to sacrifice quality simply because the machinery has been previously owned. If the machinery assets have been well maintained, you can still get years of reliable service from it. For more information on what to look out for then click here
New Machinery & equipment starts to depreciate as soon as you take it away from the manufacturers Manufacturers shop floor. In the first 12 months after purchase, its not unheard of for a double-digit depreciation, this is a hard hit for any business. It will then generally slow down in the next few years of ownership.
By choosing to buy a used piece of Machinery or equipment, you are avoiding taking the initial “hit” on the depreciation
If you decide to buy a new piece of equipment, and it depreciates as the same rate as a new car (between 20-40 percent in the first year), it’s possible for you to owe more on it than what its worth after 12 months or so. No business wants to be sinking in debt on a new piece of machinery or financing for heavy equipment if they ever had to consider selling the asset quickly.
By choosing to buy a piece of used equipment from New England, you avoid the situation with the particular asset and can focus on building your used machinery portfolio.
Hold Equipment Value Longer
As long as the used machinery or equipment is properly maintained, it will hold its value. As a reputable auctioneer we are quite specific with the quality of assets we buy. We prefer maintenance history on the equipment we sell. If you do have something that you want to sell contact our team for a free valuation and we can discuss the right sales process for your used machinery or equipment.
Free Valuation – Contact our Team!
Once you take delivery of your used assets, make a point of keeping detailed service records. Not only will you need to track any expenses incurred in keeping the equipment serviced for income tax purposes, but this information will be very important when the time comes that you want to sell the equipment later on.
Do you have something to sell? Contact our Team now!
Prospective buyers will be very interested to find out when the machinery was serviced and what was done. The more details you can provide, the more likely we will be able to find a buyer quickly and get an offer close to, or at, your asking price.
Get Your Used Machinery Right now
With ordering a new machine, It may be necessary to place an order and wait for your piece of machinery to be manufactured. Although taking delivery of a brand-new machine is appealing, you have to consider any possible lead time. In the current climate lieu times on machinery or other types of equipment are months even over 12 months.
This is a situation where you’ll need to evaluate exactly how important speed of delivery is to your business when you’re looking for machinery equipment.
On the positive side, New England have a huge range of used machines, tooling & other types of equipment. Once you have made arrangements to buy it and have it delivered to your facility or directly to a job site, you can start working with it (and have it start paying for itself) right away.
You can review the available used machinery and equipment online at any time that is convenient for you.
Simply click on our search function to see what is available. If there is not something available please drop us a line. We are members of the EAMTM, have joint venture partners and have a database of over 100,000 contacts
Have Lower Costs of Ownership
After the first year, used machinery and equipment maintain its value quite well, so you can use it then sell it if needed. By selling it back to New England you can recoup a good percentage of the price you paid for it. We understand the market trends and will market your assets in the best strategic way.
Increase of cashflow
Since you can purchase used machinery and equipment much more easily and for less money. This in turn will free up more readily available cash rather than having this tied up in new assets. Due to not having to spend money on new machinery, you could put this extra cash into other areas of your business. Perhaps you can bid on jobs you would not have been able to consider before. A temporary financing arrangement for a used piece of equipment can be factored into the cost of taking on a specific job for several months or the intended term.
When the work ends, if you don’t end up landing another contract where you would need the specialized machinery again, you have the option of selling it and recouping much of your initial outlay. If you need to sell your assets contact our valuation team.
Enjoy Lower Insurance Costs
Generally, insurance companies would price their policies according to the replacement cost of the equipment, rather than how much you would be able to sell it for. This makes used machinery equipment less expensive in terms of overall coverage due to the lower overall cost. Again another added benefit of used assets.