Posted By: Southern Fabricating Machinery Sales | Posted On: June 3, 2020
Is New or Used Machinery the Right Choice for Your Needs?
Adding a piece of equipment to your existing arsenal of options is one of the most significant investments that any company can make regardless of its size. Considering the numerous things that need to be decided on in the process of expanding capability or capacity is whether to go for new or used machinery. While the intended use for the equipment should be the first consideration, you also need to factor in the ROI and each type's advantages to ensure that you make a sound decision that is right for you and your company. Many times new machinery is the right option but often enough a quality used piece of equipment at 50% to 70% less than new is overlooked. Here we break the comparison of used vs. new machinery down
The Benefits of Used Machinery
Although used machines may not have all the technological advantages of new, they may have a myriad of advantages that your company can leverage. These include:
Unlike new pieces of equipment that require you to break the bank, used machines come at a relatively lower price. Priced anywhere from 70% to 30% of new can save tens of thousands for a buyer. Further with all the same tax benefits of new and the same financing opportunities a used machine can be a smart investment while allowing the savings to be redirected into specialized tooling, raw materials or even additional shop staff. This means that by purchasing used machinery, you can save a considerable amount of cash and use it in other manufacturing business sections.
- Avoiding Depreciation
Just like cars, machines also depreciate in their first months and years of use. Buying a used piece of equipment helps you avoid the initial depreciation since the one who bought it first has already suffered the hit. Further due to the federal tax laws currently in effect (Section 179 in the US) these assets can also be depreciated over time allowing for a tax write off just like new machinery.
- More Variety
The global market for used machines is massive, and you can be sure that no matter the type of machine you want, you’ll get it without too much trouble. Machines are readily available and can ship in a matter of days vs. weeks or months for new machinery. Manufacturers will find thousands of options to choose from if they opt for used machines.
- Greater Flexibility
Since used machines are reasonably priced, you can purchase one when you have a specific project that needs a specialized type of machine or you can opt to .
- Purchase Services A-La-Cart
While used machinery doesn’t come loaded down with extra services like freight, installation, training or warranties you can add these services as needed. For example when purchasing a new machine you're paying for all these items up front whether or not they are needed. If you are currently familiar with the machine and controller then training is likely not needed. You also may have a great source for trucking and shipping options available that can save you even more. With used machinery you have the option to select the items needed to add to the purchase package, which of course, can all be financed in just like new machinery.
The Benefits of New Machinery
Although they experience fast depreciation, require higher initial cost, and often are not readily available, new pieces of equipment also have their benefits. And they include:
- Up-to-date with Modern Technology
Buying a new machine ensures that you keep up with the latest technological developments in controls, safety and drive systems. While used machinery can be upgraded to include virtually any features available on new machinery, new machines come prepackaged with all the features and benefits you need.
- Customized To Your Needs
One of the benefits of buying new machinery is the ability to tailor order it to specifically your needs. Instead of settling on the closest thing in used machinery with one you can order the options that best suit your manufacturing climate including tooling, automation, safety guarding, training and extended warranties.
Although new pieces of equipment may require a significant initial investment, they do come with peace of mind in the form of a warranty. Warranties allow us to rest assured that in case of unplanned breakdowns or controller/drive failures that the manufacturer can quickly support and repair the machine to get it back into production. While warranties don’t guarantee your new machine won’t break down, they do provide a level of assurance that support is readily available when it does.
- Improved Performance
New machines feature the latest design and technology both in machine design and controls, drives and electronics. This means that they function at optimal levels delivering top-of-the-class performance while often integrating desired safety items right into the operating design making them both fast and safe. New compact high speed hydraulic systems, powerful lightning fast linear drives as well as fiber optic communications all add to the speed and performance of the latest new machinery. While in the end a used machine may be able to complete the same task, a new machine may perform it much quicker and more accurately.
New vs. Used Machinery: Which is Right for Your Needs?
Deciding whether to go for a new or used piece of machinery can be a daunting task. With the ability to tailor the machine to your specific needs and the added warranty a new machine is enticing, however the savings on a quality used machine simply can't be ignored. further is the performance differences between the machines is negligible you have even a tougher choice to make. In either case adding capability and capacity to your shop is absolutely necessary in order to grow your reach and potential.
New or Used, SFMS Can Fulfill Your Machinery Needs
While the decision to purchase new or used equipment relies heavily on your ROI as well as your financial capability, you must weigh all the options and choose the path that aligns with your company's long term goals. We highly recommend you look first at used machinery, measuring productivity vs equipment cost and decide if the right used machine is available for your needs. If not, then a new piece of equipment is best suited for you. This will allow you to stay within your budget and enable you to scale your resources and achieve profitability putting your added resources .
At Southern Fabricating Machinery Sales we offer both Used and New Machinery solutions. We can help you with many available options best suited for your specific needs. Call us today at 1-813-444-4555 for immediate help or visit us on the web and browse through the available options at www.southernfabsales.com or check out the Used Machinery Buyer's Guide linked below.