A Guide To Understanding The Key Factors In Buying Used Industrial Equipment and Machinery

Buying used industrial equipment can be complicated and confusing. Making the right choices when buying used machinery is essential to running your business efficiently and profitably. This guide will provide the key things to consider when buying used industrial equipment, beginning with clarifying what you need and why you need it.

Clarifying Your Needs

• What outcome do you want?
  It is critical to know why you are buying equipment. Is timing the most important issue, or is finding a duplicate of an existing machine for spare parts the most vital? Once you know your desired outcome, such as replacing a broken machine ASAP or expanding your operations, you will know where to focus. For example, availability might be your most crucial buying criterion if you need to replace a broken machine ASAP. Conversely, a more measured search may make sense if you are buying equipment for a pilot project.

Key Factors In Buying Used Industrial Equipment

• Price: how much can you afford vs the range of pricing in the market?
• A helpful rule of thumb is that used equipment should cost 50% less than new equipment
• While it can be challenging to find pricing for used equipment, Aaron’s Blue Book database contains sale pricing for thousands of pieces of equipment from the last ten years. Please get in touch with Erik Eichert at eeichert@aaronequipment.com if you would like pricing information.
• Brand: The market usually prefers a handful of manufacturers, and knowing which brands are the most popular and why they are popular will be helpful to your analysis. The reasons might include support for the machine, availability of parts, and reliability.
• Condition: Ideally, you want to buy a machine in good condition. Factors influencing the condition include appearance, how many hours it has been operated, and the nature of its past use.
• Maintenance: How well has the machine been maintained? This information may or may not be available, which is why the condition is a critical factor. Some machines will have been reconditioned, and knowing when the machine was reconditioned is essential.
• Age: The age of the machine may or may not matter, depending on the nature of its construction and use. For example, at Aaron, we often sell 50-year-old stainless steel tanks because stainless steel has a long useful life. Conversely, machines with many moving parts, like centrifuges, may have a shorter life span.
• Ongoing cost and support: How easy or hard will it be to get support for the machine? This is particularly important if you are considering buying a machine from a company that is no longer in business.
• Ask for Help: Many customers ask, “Will it work for me?” This is precisely the right question. Once your salesperson at Aaron understands your process and needs, they can help you answer this question.

Advantages of Buying Used Equipment

• Availability: used equipment is usually available immediately.
• Lower cost noted above: used machines generally sell for half the new machine pricing.
• Reduced depreciation: there is less depreciation in the value of the used machine.
• Contributes to sustainability efforts: As companies increasingly seek to engage in sustainable best practices buying used machines contributes to sustainability because machines are being recycled, requiring less new machinery to be produced.

Disadvantages of Buying Used Equipment

• Lack of OEM support: some OEMs will not support machines they did not sell directly to you.
• No warranty in most cases: Generally used machines do not come with a warranty. Some dealers like Aaron, however, will offer a right of return for an agreed-upon time.

Using industrial equipment can save you money and contribute to a healthier planet. Your decision process when purchasing used equipment should include a clear understanding of your needs, inspecting the machine for condition, age, and wear and tear, and being sure to enlist the help of your salesperson who can help you ensure the machine will meet your needs.