The Benefits of Using Previously Owned Industrial Equipment
If your business or farm has a need for industrial equipment then you realize just how costly the machinery is. Perhaps you operate a factory, and you are facing the same problems. While it would be great to have brand new equipment with state-of-the-art technology in a perfect world that would lower costs, the real world just isn’t like that. Purchasing new equipment, no matter what machines are needed in your particular industry, can be extremely expensive.
Everyone has a budget to stick to, whether you are just a single person or a full corporation, and straying from that budget can spell the doom of your company. Your business will soon be out of business if you don’t stay in the parameters of what your revenue produces. Only governments can get away with being consistently over budget, and that is simply because they just tax its citizens more to make up the difference. As a business owner yourself, if you try marking up all your prices, your customers will just go elsewhere. The key is to stay within your operating means and make a profit at the same time. If you aren’t making a profit, you might as well close up shop and look for a new career.
If you are worried that your factory or farm needs new equipment and that you just can’t afford it, there are alternatives to buying new that could be more attractive. There are companies that buy and then refurbish previously owned industrial equipment. Next, they turn around and sell it at a much discounted price than what new equipment would cost.
For instance, if your factory has a certain need, it does not hurt to make inquiries. Perhaps you can take advantage of a chemical mixer that has only been used a couple years and purchase it at an affordable rate. Thinking outside the box could save your farm or factory serious money on even just the first purchase. Not to look into buying previously owned equipment is doing a real disservice to your company.
Another option would be to lease the industrial equipment that you may need. There are definitely certain pros and cons that go along with leasing. One pro is that you are usually paying a lower monthly payment than you might be if you were to take a loan from a bank for a new piece of equipment. Plus, there is usually somewhat of a warranty in place the entire time you are leasing. This means that if there are any repairs that are needed, then the warranty can help with this without costing you too much extra money. Another positive with leasing is that you can have the newest equipment without having to pay the premium cost.
However, there are several negatives that go hand in hand with leasing that many people tend to overlook. For one thing, you have a monthly payment every month and it will never end. It just keeps going on going. You are simply renting the equipment and will never own it. Actually owning the equipment will provide you collateral down the road that you would not have if you leased. Another con to leasing is that the company you are leasing from usually has extra fees built into the contract. There may be an acquisition fee, a disposition fee, and an excessive wear and tear fees. All of those can quickly add up and leave you scratching your head wondering why you just didn’t buy the piece to begin with. So think carefully if you would not just be better off buying previously owned and save yourself the new costs and the headaches of leasing.