---
title: 4 Factors You Can't Avoid When Buying New Machinery
description: "There are 4 factors that you need to consider when buying new machinery: Asset, Replacement, Resale, and Wholesale value."
image: https://www.southernfabsales.com/hubfs/images/blog-images/4-factors-you-cant-avoid-when-buying-new-fabrication-machinery.jpg
---
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Posted By: Andy Kamashian | Posted On: February 15, 2018
# 4 Factors You Can't Avoid When Buying New Machinery
Used Machinery
When buying new machinery, a buyer typically does so based on the desire for the newest/fastest/best technology available. If a new machine is the only way to make parts better, faster and cheaper then, by all means, go for it! But, in most cases, a [quality used machine](https://www.southernfabsales.com/used-machinery-buyers-guide) can perform the same task to the same accuracies and speeds for far less cost than investing in a new system AND, used machines can provide the buyer with the same access to service as new ones.
Sometimes, buyers opt for the cheapest solution to their needs. Others may opt for the "Brand" they are most familiar with. However, there are 4 very important factors you should consider very carefully before making your decision on any brand and model, whether it is a new or used machine.
## **Replacement Value**
This is the simple value it takes to replace the same process running the same output with a like process on your floor. It doesn't mean the "As New Price," but rather the price of a similarly-capable used system. This should be your "Insured Value."
## **Asset Value**
Asset value is the value the fabrication equipment retains on your floor 2, 3, or even 10 years after your purchase. It's not only the value of your equipment, it is the value that the asset can be liened (business lines of credit), or "borrowed," against. Even if you never plan to sell or borrow against your equipment, a high asset value brings more security for your investment and your company.
## **Resale Value**
Although similar to asset value, resale value is the expected return on your investment should you decide to outright sell or auction your used machinery a few years down the road. Resale value takes a closer look at the current market for your type of machinery including time-to-sell, availability of like machinery and market desirability for your equipment.
## **Wholesale Value**
Wholesale value is the value you might expect to receive if you need to [liquidate your equipment quickly](https://www.southernfabsales.com/used-machinery-sellers-guide) (under 90 days). Selling your machinery at a wholesale value is sometimes the quickest way to turn old, unused assets into usable capital for new projects and equipment.
At Southern Fabricating Machinery Sales we stay hands-on with the used machinery market because used machinery is all we do. We know what buyers are willing to pay, and risk, for quality used equipment. We have AMEA Appraisers on staff and put all used machines offered for valuation through the resale tests of:
1. **Value**
2. **Market Demand**
3. **Time-To-Sell**
4. **Brand & Model Demand**
We know which models, of which brands on the used market sell, and which tend to stick around a while, thus affecting their value, and eventually your investment in Capital Equipment.
Feel free [to call us anytime](https://www.southernfabsales.com/contact-us) and inquire as to what the 3, 5, and 7 Year expected values of your proposed new (or used) machinery asset should be. We can also help you decide between that quality piece of used equipment and the latest and shiniest new machinery on the showroom floor.
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Andy Kamashian
Andy has extensive experience in Machining as well as Metal Fabricating. Gaining his knowledge through years dedicated to Tool & Die Making, Machining and Metal Fabrication with hands-on applications at companies such as: Kamashian Engineering, US Navy/DOD, Boeing, Charmilles, AGIE and Calypso Waterjet Systems. Andy is able to share this experience to assist you in your machining and fabrication equipment and application needs.
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