5 Reasons to Buy Used Equipment

March 4, 2020

Value Engineering and how AM Industrial can help your business

Whether you are a large manufacturing company or a small shop, when purchasing industrial equipment typically there are two options: new equipment or used equipment.

There are many assumptions that are made about both new and used equipment but there are certain advantages to both.


Sometimes a need for industrial machinery comes up and it is essential that it is addressed immediately.  Generally, used equipment is in stock and ready to ship where as new equipment has a lead time of 8 weeks and in some cases more.  When the need is urgent, most businesses choose to go with used as the shorter lead times reduce down time. 


Used equipment is like cars when it comes to cost.  As soon as a new piece of equipment is used in a factory it depreciates greatly – the same as a new car when you drive off the lot.  Buying used equipment means someone else has already taken the brunt of the depreciated value, allowing the machinery to be sold at a better value.  The reduced cost of used equipment will help keep the project under budget.

Return on Investment: 

Used equipment provides a faster return on investment than new equipment.  Because of shorter lead times and the lower costs, a machine can be purchased and in production in a matter of days.  With new equipment there are longer lead times and higher costs making the process of getting the machine to your facility can take months. LOWER COSTS + SHORTER LEAD TIME = FASTER ROI

Know before you buy: 

When purchasing a used system, often you can inspect the machine and see exactly what you are getting before purchasing it.  When buying new equipment, often it is built after the order is placed or a down payment is made.  Used equipment typically arrives in the same state as when you inspected it.


If there are already machines in a factory that need replacing, often it is more convenient to replace the machine with the same machine or one similar.  If the manufacturer is no longer making that specific model, a used machine is the answer.  Being able to replace a machine with the same model is convenient and reduces training costs. 

At AM Industrial, we will discuss options for going with used versus new to save both time and money.  We have access to a large amount of used inventory that is in stock, ready for inspection and to be sold at excellent value.  Contact us today!


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