Regardless of which business sector your company operates within, one of your primary concerns should be deciding where to spend your assets. For businesses with a construction, warehouse or manufacturing background, a large portion of your capital is spent maintaining and purchasing specialist equipment.
Generally, two options are available for organisations when purchasing equipment, whether a small warehouse or a large manufacturing company: new or used. Indeed, the advantages of purchasing used equipment outweigh that of buying brand-new, from reduced costs to the sheer range of second-hand equipment available. This article looks at some of the advantages of purchasing used equipment in more detail – keep reading to find out more.
Purchase Costs Are Lower
Not only can purchasing brand-new machinery can be a significant investment for businesses, but it can also be an incredibly wasteful use of your capital. Investing in new machinery is considered a sizeable investment for most businesses, one that usually involves careful budgeting so that the expense doesn’t disrupt cash flow.
Let’s face it, purchasing something brand new is always appealing. Still, provided that the equipment has been well looked after, you can get several years of reliable service out of a second-hand piece of machinery despite it being used. As well as saving on the initial investment costs, purchasing used equipment means paying less in sales tax. Any savings can be put towards a second piece of equipment, accessories, or other business areas.
Huge savings can be made by purchasing used forklifts from companies like Refurbished Forklifts, which retail a range of used and refurbished warehouse equipment ranging from used aisle-master forklifts and much more. To see how their used and refurbished products could save your business money today, head over to their website or contact a team member directly for information.
Receive Your Equipment Quicker
Another advantage of purchasing used equipment is that you’ll reduce the time spent waiting for your order to arrive. Generally, when purchasing brand-new equipment, most businesses will have to wait for it to be manufactured before starting to use it. However, as satisfying as owning a new machine off the conveyor belt might be, it doesn’t warrant wasted time.
On the other hand, purchasing used means that the item is in stock, available, and ready to be shipped within a few business days, which means that you can start using it as soon as you receive it and that it’ll start paying for itself straight away.
Reduced Insurance Costs
Comparatively, if you weigh up the costs of insuring a brand-new piece of equipment versus a used one, you’ll find that insuring a used piece of machinery is much more cost-effective. The cost of insurance is generally determined by the equipment’s replacement costs opposed to how much you would be able to get at resale value.
When it comes to used equipment, insurance is generally more cost-effective since the equipment replacement cost is lower than purchasing a new piece of equipment. Although different insurance companies have various regulations, ensure that you read the fine print and fully understand what is covered and what is not when you come to insure your latest addition.