Posted By: Southern Fabricating Machinery Sales | Posted On: March 17, 2020
What to Do With Used Industrial Equipment
Industrial equipment is an extremely valuable asset to have on hand. One of the biggest mistakes companies make is throwing old industrial equipment away. That said, industrial equipment can be borrowed against, traded or sold and turned into a substantial amount of money. Here’s what you need to know about unloading your used industrial equipment after it’s no longer needed.
What to do With Old Industrial Equipment
When you have old industrial equipment on your hands, you have several options available to you. Should you just pitch it and be done with it? Do you recycle it or repurpose it somehow? Or do you sell it, and if you do, what’s the best way to do it? These are all important questions to ask yourself when deciding what to do with old manufacturing equipment.
6 Ways to Get Rid of Old Machinery
There are essentially 6 major options to choose from when determining what to do with your old manufacturing equipment.
- Scrap - One of the easiest but least profitable options is to scrap the equipment for a small profit, consider scrapping machinery when the machine is just too old or repairs needed to make it operational exceed the system's value.
- Repurpose Internally - If you have a clever engineer in your employ you might be able to have them come up with alternative uses for old machinery. Many times old machinery can be adapted to a custom application solving another manufacturing need.
- Trade it In - One of the often overlooked options is to trade in the machinery towards a new machine. By doing this you will lower the purchase amount and avoid having to pay Capital Gains Taxes that may be do should you turn you sell it outright without replacing it. There are plenty of rules and each state differs, but in general, trading-in your machinery OR selling it outright and buying a newer replacement can be treated as a Like Kind Exchange. (Read all about Like Kind Exchange Here)
- Wholesale to a Dealer - This option is recommended when you have multiple pieces of equipment to unload and need it gone fast. A used machinery dealer like Southern Fabricating Machinery Sales, can make you a cash offer on the equipment turning old iron into new dollars available to be used on anything else your company needs.
- Sell Direct - Selling direct is an option if you can market your equipment effectively and have time to answer a myriad of calls and low ball offers.
- Broker with a Dealer - This can be the most rewarding option as it brings the highest return to firms on their equipment. Provided you have a few weeks or months to move the equipment a quality used machinery dealer can help not only get the most return, but also cover costs associated with moving the machinery such as trucking, rigging and even technical specialists to prepare it for relocating.
How to Sell Used Manufacturing Equipment
Countless businesses end up with used industrial equipment on their hands at one point or another. For example, you may have generated enough revenue to purchase brand new industrial equipment and find yourself with some obsolete equipment lying around. In another scenario, you might have outgrown a certain production process entirely or changed the focus of your business to services and have no further need for your remaining industrial equipment.
Whichever scenario you find yourself in, selling used machines is always a smart idea.
Start by getting good clean clear pictures of the equipment along with as many technical specifications you can find. Gather any maintenance and service history, operating hours etc and send them to a used machinery specialist. You can easily find us by simply searching for the machine you are considering selling and a myriad of dealers will appear. Choose the dealer that's best at your type of equipment and not necessarily the one that is closest to you. The dealer will take it from there, buying and selling your machine quickly for top dollar.
Selling Used Manufacturing Equipment
If you decide to go it alone and sell it yourself you will need to know values and how to leverage it. When you’re going to sell used machinery you will need to have a thorough understanding of what that machinery does, how it works, important factors of operation and it’s maintenance history so that you can answer questions when speaking with potential buyers.
To sell used machinery effectively, you should get it cleaned up and make it look as fresh and new as possible. With old machinery, this can be challenging, but the effort is always MORE than worth it.
Again, try to collect as much documentation on the specifications of your old machinery as you can. Another way to give yourself the best chance of fetching a fair price when selling used machines is to take a video of the equipment in action so that buyers can see what the equipment is capable of.
If you’re looking for the best deal when selling used machines and want to work with a dealer that you can trust, look no further than Southern Fabricating Machinery Sales. We have Certified Equipment Appraisers on Staff and know machinery and machine values. We’re a trusted leader for a reason, we take care of the people we work with and strive to get them the highest return in the least amount of time. We also have published a great sellers guide available to you below to help you get the most out of your used machinery.
Connect with Southern Fabricating today and let us help you find money for your old machinery.