Used Industrial Machinery: When Should You Buy Used Instead of New?
Betting on the overall performance of new machines against used ones is a forgone conclusion – or is it? In woodworking, there are some instances when buying the latter is more sensible than buying the former, especially when it features industrial grade design. Unlike hobby grade and mid grade machinery, industrial grade machinery can last for decades, delivering top performance despite frequent use under hash conditions, such as those found in high capacity woodworking factories.
If you are considering buying industrial woodworking machinery used instead of new, below are four situations in which buying it secondhand makes the most sense.
You Need More than One Machine Within a Short Timeframe
For some woodworkers, upping production means buying two or more machines within a short timeframe. If this describes your situation, investing most of your money in one machine and then figuring out ways to buy the others does not make much sense, and could lead to unwanted financing.
Some woodworkers do this when they buy CNC machines. Instead of carefully inspecting a pre-owned machine, they buy a new one to ensure that its computer and cutter heads operate as expected. However, pre-owned CNC equipment can offer the same performance as new equipment.
As with any used woodworking machine, the key is to make sure that a used CNC machine is (1) sold by a professional seller who has a good reputation, (2) has a spotless maintenance record, and (3) has been professionally inspected for signs of wear.
You Are Investing in a Larger Workspace
If you are moving to a new CNC machining factory whose purchase will use up most of your expense budget, upgrading your equipment with used equipment could be the best move. While everyone wants new machines when starting a new venture, buying them pre-owned will make the transition more affordable and let you realize more revenue as profit.
You Need Machines to Meet Increased Production Demand Now
Most woodworkers aspire to high production demand. When that demand becomes overwhelming, woodworkers often find themselves in the position of needing one or more new machines almost immediately.
The problem, of course, is that revenue from increased production demand justifies the machinery purchase, but it cannot be realized without the machinery. In such cases, buying equipment secondhand instead of financing new equipment is the sensible option. Once your revenue catches up with your production rate, you can buy new equipment as you please.
You Are Starting an Official Woodworking Business
If you are going from being a casual woodworker to one who earns a livelihood from his or her skills with wood, minimizing business financing should be a primary goal. The less you owe, the more revenue you can realize as income and put toward developing your production line. Buying used industrial machinery might require financing as well, but remember, the less you finance, the more you earn. For small businesses, this simple relationship can mean the difference between success and failure.