Buying Lift Equipment
As experts in the materials handling industry, we at Warehouse1 know a thing or two about buying and selling new and used lift equipment. A common question our customers ask is on the benefits of new and used equipment.
Here are some pros and cons of buying lift equipment:
Buying New Equipment
Pros Functionality -- Products made directly from a factory can, if working properly, provide an immediate rescue from old, worn equipment that isn’t adequately getting the job done anymore. Many times the reason you buy new equipment is to replace malfunctioning lifts or conveyors. The hassle and time saved with avoiding repairs and maintenance on old equipment mitigates some of the pain of upfront costs. Long-Term Costs -- Buying a machine new also means saving money on fixes and shutdowns, as newer equipment promises to last longer than used. By splurging on costs upfront, you’re saving yourself money in the long term. Cons Training and Research -- Granted, training and education are great things for equipment operators, getting acclimated to new lift equipment means hours spent on training.. By buying a used model of your current lift, much of that time and money can be funneled to other phases of your business. By the same token, the extra hours poured into researching what kind of new equipment is best suited for your warehouse can be extensive, too. Sometimes it can be less of a headache to seek a familiar used model to your warehouse. Short-Term Cost -- Even though the long-term financial benefits will come in time, it’s difficult to swallow the upfront costs of buying or leasing a new machine. One good way to mitigate these costs is to take advantage of Tax Code Section 179. This is an IRS deduction that allows you to write-off equipment you lease in 2015 for the full amount when doing your taxes. So if you lease $100,000 of equipment in December, yet have only paid down $5,000, you’re able to write off $100,000. This should incentivize you to buy before the year ends, so if you need any equipment, click here to access our store.
Buying Used Equipment
Pros Cost -- Compared to new, the cost of acquiring used equipment is significantly less. So if you’re in a bind in need of equipment, buying used is the avenue for you. Reliability -- When buying used equipment, a common assumption is buying used means a less reliable product. Often times, this isn’t the case. A used machine has been inspected and ran through rigorous testing, had repairs made on it and been given tons of care in nursing it back to working order. Thanks for reading!