Adding a piece of equipment to your shop is one of the most significant investments that any company can make regardless of its size. Deciding whether to go for a new or used piece of machinery can be overwhelming. When buying a new machine, you have the ability to customize the machine to your specific needs and the warranty a new machine is enticing. However, the savings on a quality used machine cannot be ignored. In either case, adding capability and capacity to your shop is necessary to grow and reach your potential.
THE BENEFITS OF NEW MACHINERY
Buying a new machine ensures that you have the most up-to-date technology available in controls, safety, and drive systems.
One of the key benefits to purchase new equipment is the ability to tailor it to your company’s specific shop requirements. No need to settle for the closest option (with used) and then add capabilities and tooling, automation, etc.
Most new equipment purchases can be customized to included training for your shop employees to make sure they are using the equipment properly. Warranties give you peace of mind in case of those unplanned breakdowns or controller/drive failures. The manufacturer can quickly support and repair the machine to get it back into production.
New machines feature the latest design and technology both in machine design and controls, drives and electronics. This means that they function at optimal levels delivering top-of-the-class performance while often integrating desired safety items right into the operating design making them both fast and safe. New compact high speed hydraulic systems, powerful lightning-fast linear drives as well as fiber optic communications all add to the speed and performance of the latest new machinery. While in the end a used machine may be able to complete the same task, a new machine may perform it much quicker and more accurately.
THE BENEFITS OF USED MACHINERY
Unlike most new equipment, used machines come at a relatively lower price. Saving anywhere from 30% to 70% over the cost of a new machine can save thousands of dollars for the buyer. With the same tax benefits as purchasing new and financing opportunities, a used machine can be a smart investment.
Like automobiles, machines depreciate in their first months and years of use. When buying a used machine, you avoid the initial depreciation. Also, due to the U.S. Federal tax laws (Section 179), these assets can also be depreciated over time allowing for a tax write off just like new machinery.
The marketplace for used machinery is massive. No matter what machine you are in the market for, you will probably be able to find it without much trouble. Most of the machines are readily available to ship without delay and can ship in a matter of days rather than weeks or months as with new machinery.
You can add services like freight, installation, training, and warranties as needed in most cases. You can also personalize your machine with accessories and parts.
The decision to purchase new or used equipment relies heavily on your ROI as well as the financial health of your Company. Weigh the options and benefits of New vs. Used and choose based upon your Company’s long-term goals. Manufacturing Solutions is here to help you make the right decision for your company. Give us a call to discuss your options. We’re here to help.