The Top 6 Things to Consider When Purchasing Used Equipment
Purchasing used equipment can offer considerable advantages. Let’s start by looking at the basic pros and cons. On the positive side, used machinery can be attractive in price and by choosing to go with pre-owned equipment, you eliminate the initial depreciation that comes after buying brand new. And when the machine you need is available in the used marketplace, delivery time can be much quicker than through placing an order for a new unit.
On the other hand, used machinery may have a shorter future service life than new as well as not having all the latest bells and whistles. There are several things to consider. The most important thing is to work with a reputable equipment broker that can ask the right questions to help ensure a successful buying experience for your business.
Here are the six top things to consider when purchasing new equipment:
1. Compatibility with your operation’s layout and production line
Don’t inadvertently let a newly purchased machine bog down your line. It is important to buy equipment that has the production capacity needed to maintain or enhance your throughput. For example, you don’t want to purchase a stacker that can’t keep up with your gang saw. There are also other considerations such as the footprint of the machine being bought. Going back to the example of the stacker, a higher speed stacker will be longer than a lower speed unit and require more space. Also, consider machinery voltage requirements.
Additionally, the installation may have implications for pedestrian and forklift safety, as well as for moving wood to or from the machine. For newer equipment, CAD drawings will often be available. For older machines, a reputable broker can provide a sketch with lengths, as well as several photos to help you better understand how your new machine will integrate into your operation.
2. Transportation of used machinery to your business
For the inexperienced, transporting heavy equipment safely can initially seem like a daunting challenge. Look for an equipment broker that offers transportation services through experienced providers. Pallet Machinery Group, for example, eliminates the headaches of delivering your machinery purchase. It deals directly with a knowledgeable freight services provider, providing the dimensions, weight, and other pertinent details necessary to ensure your equipment arrives in good condition. It passes along only the freight costs to the buyer. Because Pallet Machinery Group does work with freight brokers, brokerage charges can be avoided by customers opting to arrange their own freight as an option for those experienced in that area.
3. Financing your used equipment purchase
Look for a machinery broker who can arrange equipment financing, as required. Pallet Machinery Group, for example, works with a financial institution that offers flexible solutions, including no payments for three or six months, allowing the equipment buyer to generate a return on their investment before having to make their first payment. Credit can be approved quickly, often within a day once the paperwork is completed.
4. Machinery installation
Oftentimes, used machinery purchasers have a good enough understanding of the equipment they are buying that they do not need support with the installation. When customers do need help with installing their purchase, however, a reputable broker will have connections with the various equipment vendors and can help connect used equipment buyers with the manufacturer support team.
5. Understanding machinery condition
When possible, it is a good idea to take a look at the equipment before you buy it to ensure its condition, especially for larger investments. The experienced machinery broker may also physically inspect the equipment and will also request as many pictures as possible. Additionally, they will ask the right questions, to ensure that you are getting a quality machine. When a machine has concerns, the broker should spell them out so that the potential buyer understands the repairs needed to restore it to full functionality. Some buyers have expertise in repairing equipment and are willing to take on that challenge if the price is right.
6. Let your broker know the piece of equipment that you need, even if they don’t have it listed
Just because you do not see the machinery you need listed by a broker, take the time to let them know of your interest. Brokers such as Pallet Machinery Group are happy to note the request and typically will alert the prospective buyer if a unit becomes available - before it is posted. A quality machinery broker will also feature WANTED EQUIPMENT in its newsletter or e-blast to help match equipment buyers with surplus machinery.
In the final analysis, purchasing used equipment doesn’t need to be a “necessary risk”. A reputable broker will help ensure that the right questions are asked as well as offering support with finance, transport, and installation, as necessary, to ensure that you get full value from your used machinery purchase.