Boosting your enterprise by adding to your equipment collection is a step towards productivity. And, therefore, a step towards business success. Whether you’re contemplating purchasing used milling machinery, plasmas, fabrication equipment, and more, here are the advantages of choosing tried-and-tested non-brand new apparatus.
1. More Economical
This is the immediate benefit that motivates buyers into selecting used machinery. Used machinery tends to be miles lower in cost compared to their newer counterparts. And these days, “cost” cannot be ignored.
New machines now have exorbitant hefty price tags on them. If you’re trying to protect your capital in case you’re a small to medium-sized business, a startup, or that you’ve only been breaking closest to even with your recent projects, then consider this incredible and practical option.
If it has been well-maintained by the previous owner, you can be sure you can rely on in for years to come.
Even better, buying used machinery will have you save on sales tax as well. Sales taxes are classified under “consumption tax”, or taxes allotted on the purchasing of goods and services. The percentage apportioned to them is directly related to the total cost of goods or services.
Therefore, the lower the amount on the receipt for sales, the lower the taxes you will have to pay.
2. Initial Depreciation Avoidance
The first year or two of a new machine after it has been taken off of the seller’s hands will experience rapid depreciation. Such depreciation will slow down into the latter part of the second year, into the third, the fourth, and so on.
In fact, studies show that at least 40% of depreciation takes place during the first year alone. What this means is that maintenance and/or repair costs within this timeframe is generally higher (and more complex) than the remaining years.
With used machinery, you can skip this hassle and have your name stamped on the “true value” of a machine, without having to shell out for its year-1 because of rapid depreciation.
3. Other Cost-Saving Loads
Besides initial purchase cost and sales tax, other types of savings can be gained from buying used machinery, including amortization and insurance, among others.
Amortization is achieved by deducting the residual value of the instrument from its original value. The difference is to be divided across the machine’s remaining lifespan. The final amount is what you can “amortize” perennially.
With regards to insurance, you can ask the seller about carry-overs. Or if not, have them permit a transferral.
4. Versatility In Upgrading And/Or Disposing
Should you purchase a used machine from a reputable dealer, you can rest assured that once you’ve utilised it for its required purpose (if it’s short-term), you will be able to easily discard of it with their help.
In some cases, cash-backs are in the offing, too. This isn’t always the case but it’s a cherry on top of the icing. Still, what all of this implies is that you can upgrade your current equipment or exchange it for a different one, more conveniently. The same is true with convenience in repairs.
Your dealer will have direct contacts with the machine’s manufacturer (along with a slew of other makers and suppliers) who can assist with these transactions. And because you’ll be working with them directly, upgrades, exchanges, and repairs will also be more economical compared to that of new machinery.