5 Thoughts Before Buying Used Machinery
Buying used machinery can be an excellent way to grow your business and stay within budget. You could be searching for high-end CNC equipment or a consumer grade drill press, and the chances are, you would save money buying used. The first part of buying used is knowing where to look. Obviously, I would recommend HGR Industrial Surplus given the large inventory and variety of equipment. In the end, wherever you choose, there a few things to keep in mind when buying used machinery.
- Reasoning – What are you looking for in a used machine? Do you want to get a great deal on a working machine without any issues that runs for life without a need for maintenance? Flip another quarter in the wishing well, and throw me in one too while you’re at it. The truth is, used machinery doesn’t come with all of those guarantees and often needs some sort of work done to it before it is in optimal working condition. So, if you have the resources or knowledge to do so, buying used may be an option for you. Do you need to see it in working condition before you buy it? Maybe try an auction on our homepage.
- Financing – Not all machinery dealers offer financing and banks may be hesitant to loan money for used machinery. You may have to come out of pocket for the full cost of the machine and the repairs. While this will most likely benefit you in the long run, you have to have the resources available before making that decision.
- Component Usage Wear – It is important to know what you are looking and where to look when buying a used machine. You may use one of these machines daily and know exactly where to look. For the rest of us, we aren’t hopeless. Luckily smart phones have given us the ability to search the make and model and which components wear out or are frequently damaged. While the damage may not be a deal breaker, it may give you leverage on the price when haggling, so make sure to take a quick search while inspecting.
- Know the Value – Every company is out to make money, so don’t be surprised if the prices aren’t rock bottom steals. These companies have to purchase the machines and then have them shipped into a facility to sit and take up floor space waiting to be sold. There is a cost that builds with each machine. With that said, a little research can give you some buying power by knowing what the machine is worth. It is hard to argue prices, if it is at market value. Knowing what the machine is worth will ensure you don’t overpay and get a fair deal.
- Kill the Deal – Keep in mind that when you go to see a machine in person, you may see things you didn’t in the photos, so make sure you can have someone inspect it, if possible. That person, or yourself, should have “Deal Killers” in mind. Things that you have decided will detour you from this purchase. It may be specific damage you see, overall condition, storage condition, or a complex repair that is needed. The inner voice in your head says it’s a good deal and I can fix this, but will you ever do it? Know when to say when and decide the tipping point to when this machine is no longer a value.
Interested in used machinery? See our new arrivals here!
Maybe an auction? Take a look at a few auctions HGR is currently marketing.
By Joseph Powell