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Know what your budget is
The leading reason why most people will opt for used equipment is because of the decreased price you can get on the equipment. Furthermore, when armed with good negotiating skills you can get it for way less. If you are running or a project that needs to work in the most efficient way without ripping through your finances, then budget is essential. Just because you can afford the equipment at a very cheap price will always have to be weighed against whether you need it. You will also have to take into factor the replacement costs. You can always weigh your equipment options against your budget to make a sound choice. You should also consider whether you need a loan to do so, such as taking out a small business loan to buy your equipment.
Inspect your equipment
Since you know it is used, it’s best to make sure that you are getting the best deal for your money. Ask if the equipment has a warranty and if it is transferred when you buy it. Despite finding the best deal at dodgy Franks, it’s best to buy your used equipment from a reputable seller. Don’t be fooled by its appearance or the smooth talk the seller is giving you. Turn your FBI detective skills and give it a good visual inspection for any rust, leaks, funny things that go bump, or fall off. Prod and poke it. If it is possible, take it out for a test run to see how it fairs. If you still not sure you can take it to an expert who will either give it a thumbs up or down.
Know your equipment’s history
You can always run a background check to check your equipment’s history to ensure that you are not being sold a dud that will cost you more in future. Ask your seller if they can provide you with some documented information about the equipment you consider to be valuable. If it something that has only been used by the seller, ask how it has been maintained over the period that they were in ownership of it. What conditions was it used in, or even how long it has been under their operation. This will be a worthwhile investment so take your time.
Ask for manuals
Even if it seems as a no brainer, it is advisable for you to ask for the manuals and go over how it works. This could be beneficial for both experienced and unexperienced personnel that will be operating the equipment to prevent premature break down’s.
Ask for help from a professional
When taking out something like a $10,000 business loan to purchase your equipment, make sure to always shop around and compare. Whether this is for loans or the actual equipment itself. Sit down with a financial advisor who will help you see holes that you overlooked when looking to finance your used equipment. Your future self will thank you for it.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Approval for commercial loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.
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