Purchasing used machinery for sale can be an attractive option for many industrial buyers. There are a few things to consider prior to putting the deal in motion.
Tom says his office receives six to eight calls daily from people looking for credit references on sellers listed with Surplus Record. He explains how the website offers transparency to endusers unlike some other online marketplaces.
Cost Savings
Purchasing used machinery can save you thousands on the price tag of a new machine. This can help you preserve cash flow and direct it towards other business needs like ersonnell, work tool attachments or even additional equipment.
It can also avoid hefty down payments. New machinery depreciates rapidly, and it is possible to end up owing more than the equipment is worth after just one year of use. Purchasing used machinery prevents this scenario, as the value retains its stability and your business can pay it off over time.
The demand for used equipment is high, and it is often available at auctions or from established dealers. It is important to have the machine inspected and tested before making a purchase, but you can find quality equipment from reputable sellers at affordable prices. This option can be beneficial for companies that require heavy equipment for specific projects with short durations. They can acquire the equipment at reasonable costs and resell it when the contract is over.
Time Savings
Aside from the initial cost savings, used machinery for sale allows businesses to bypass lengthy lead times. This is particularly beneficial in construction, where equipment lead times can be stretched out for months due to supply chain disruptions.
Purchasing used fans and blowers, tanks, motors, screeners and more from a quality seller can be much faster than waiting for the arrival of new machines. As an added benefit, this speed can help reduce operational disruptions that may negatively impact the business’ bottom line and productivity.
Additionally, it’s important to consider that unlike brand-new equipment, which is typically relegated to the specific inventory a dealer has in stock, browsing the used market means you can find anything from machines released just last year to those launched decades ago. The variety of options available in the used market also means you can purchase equipment with specialized features and capacity requirements that you may not have found when looking at brand-new models.
Financing Like New
Many manufacturers and dealers offer financing for new equipment through third-party lenders. However, the terms, amounts and rates vary widely. In addition, you must typically have great credit and a down payment to qualify for this type of financing.
If you buy equipment from a private party, it’s essential to perform a thorough inspection, research pricing and ensure the seller can transfer free and clear title. Additionally, if you’re buying machinery from an online marketplace, be sure the marketplace has strong security features. A lending partner that specializes in small business equipment can help you find the right loan for your needs. These lenders may provide loans for used equipment or offer special programs loan guarantees that can help you save money. They also understand how to assess the potential resale value of your equipment, which is important for lending purposes. This allows you to secure a better rate and reduce your total costs.
