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Buying New or Used Equipment: The Pros and Cons

For various reasons, many service providers and companies have been plunged into worries because they find it hard to choose a category of equipment. If you are in the process of acquiring new equipment, and you need help to determine whether to purchase old or new ones, then you’re in the right place.

 

Buying New Equipment:

Advantages:

Purchasing new equipment gives the following advantages:

  1.  New equipment come with warranty, which covers maintenance
  2. The parts of a new equipment are intact, and the spare parts are readily available.
  3. New equipment are durable
  4. They are safe to use and are more reliable
  5. Some companies allow you to return the equipment for an upgraded version
  6. Quality can be guaranteed, as OEMs have their reputation to protect
  7. Financial support by way of loans are available for the acquisition of some new equipment.

 

Disadvantages:

However, the acquisition of brand new equipment can be an economic burden on the company, even with financing. Besides, some equipment are only needed for short-term use. Moreover, some equipment might need constant updating to keep functioning, which also comes with a cost.

Advantages of Used Equipment:

Purchasing used equipment present the following advantages:

  1. Cost price is negotiable You can beat down the price because once an equipment is used, the price value depreciates
  2. Some used equipment are relatively new, and might still be under warranty.
  3. Used equipment are perfect for backups.
  4. Used equipment are also your best bet for seasonal or occasional use.
  5. Used equipment can be tested before purchase.
  6. The saved cost can be invested in other business activities.

Disadvantages:

With used equipment however, the main demerits are

  1. Short lifespan: With equipment as with most things, new lasts longer than used.
  2. Fewer selection options: With used equipment, there are fewer options to select from in terms of specifics like colour, age, manufacture date, etc.
  3. It’s actually harder to source for reliable used equipment than brand new.

There is no gainsaying that the onus of selecting the right equipment rests on the user. All an individual or a company needs do is to weigh the different options and make good calculations.

This article was written to educate buyers on the reasons some individuals or companies pick equipment from either categories, and to help them make their decisions based on the company’s capability.

 

Images from pixabay

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