Should You Buy Second-Hand Or New Metalworking Machinery

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The metalworking industry supplies our world with the needed materials to build a better future. Thus, this industry is key for the development of every country.

Metalworking businesses have the option of buying second-hand or new machinery whenever entering the industry. And if you’re thinking of which to go with, then this article is for you.

In this article, we will compare the pros and cons of both and that will hopefully help you make the right decision. With all that said, let’s start.

Source: bCL Photography

Advantages Of Buying Used

There are some clear and obvious advantages when it comes to buying new metalworking machinery. Let’s look at that.

  • Lower Cost

The biggest advantage to buying any sort of used machinery is that you aren’t paying the price of new. Used machinery will sometimes cost a lot less since others have been already using it. There are plenty of sellers that will offer top prices for second-hand metalworking machinery.

Experts suggest that used machinery will cost you anywhere between 30% to 75% less. And that is something that should be taken into account when comparing both.

  • You’ll Get It Sooner

Do you need a metalworking machine right now? If so, then buying used will save you plenty of time. The reasons for that are pretty simple.

Namely, although we have access to all kinds of shopping venues, certain machines or parts might not be available at the moment. Unavailability can seriously put many businesses from buying new and instead opt for second-hand equipment. Extensive postponements can put a business out of work, and that’s not something you want to happen to your business.

Although this is certainly not always the case, there is a much greater chance of waiting for more for new equipment to arrive than second-hand.

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  • No Initial Depreciation Value

Initial depreciation is when a machine instantly loses its value the moment you buy it. Metalworking machines are quite similar to cars. Cars instantly lose value the moment you buy it from the dealership.

And whenever buying new metalworking machinery, it will be subjected to an initial depreciation value the moment you take it out of the warehouse.

The initial depreciation value differs but most put it anywhere between 20% to 40%. As you can imagine, that isn’t the case when buying used machinery. The depreciation value doesn’t matter when buying second-hand as its value is already depreciated.

  • More Options

When it comes to buying second-hand machinery, it’s safe to say that we can get it for a much cheaper price. This gives us plenty of options to work with, as second-hand machinery isn’t subjected to losing its value.

This means that you can use the equipment for one to two projects, and then sell it off for a similar price. It is something that is done quite commonly in the metalworking industry, especially for businesses that don’t specialize in a particular sector of production.

The machines get constantly sold from one to another and they do their job excellently. Whenever buying second-hand metalworking machinery, it will be in your best interest to also buy quality. So regardless if you’re thinking of buying new or used, www.jps-machinery.co.uk has you covered.

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Advantages of Buying New

Now, let’s look at some of the advantages of buying new.

  • Staying Up To Date

The whole point of buying new metalworking machinery is to stay up to date with the latest technological advancements. As you can imagine, this can have a pretty serious impact on your company.

From utilizing the latest tech that gives you production speed to craftiing more materials at once, the benefits are truly astonishing.

Owning new equipment gives your company a competitive edge over those that use second-hand. Since second-hand machines aren’t the latest to come out, it makes your company a more serious player in the industry.

Source: Entrepreneurship In A Box
  • Improves Your Production Capabilities

Although we did mention this, it’s important to stick around it as it needs a bit more explanation. Make no mistake about it, the metalworking industry is constantly making new toys for businesses to play with.

And that is a huge reason why many choose to buy new. Having a competitive advantage is one thing, but being able to truly experience the speed and production capabilities of some of these units is even better.

Everyone looks to increase production but that only be the case if you’re buying new.

  • Ownership

When you’re the first buyer of a metalworking machine, you have sole ownership over it. Plenty of companies get into contracts with other manufacturers that lend them second-hand machines. This endless cycle of agreements, negotiations, and contracts to sign can be difficult and hard.

Why go through all that when you can get yourself a new machine and have the freedom to determine when exactly to run maintenances? More so, being the sole owner means you can sell it at any time and at any cost you like. But you will have to consider the initial depreciation value.

Source: Rabin Worldwide
  • Better Safety

The newest toys tend to also be safer, in addition to being better and more effective. That’s also the case in the metalworking industry. New machines have improved safety features and mechanisms that put the worker’s safety at number one spot. Old equipment runs the risk of breaking down and potentially injuring the operator at any time.

And when you consider the fact that safety features are a number one area of improvement in the industry, it makes all the sense to buy new instead of second-hand.

  • Tax Incentives

And lastly, we come to the dreaded tax incentives. Plenty of people hate paying their taxes, but there might be a silver lining if you’re thinking of buying new metalworking machinery.

Namely, you could take advantage of tax incentives whenever buying new machinery. Sure, the initial costs are nowhere near when buying second-hand, but you can use it to gain something else entirely.

Source: Illinois CPA Society

Conclusion

If you’re thinking long and hard as to which to get, we recommend you consider these advantages and make a sound decision at the end. If quality is what you’re after, then buying new will always be better. If saving money is your deal, then you could save plenty by going with second-hand machinery.

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