The Balloon Payment (or Residual) is the final payment needed to finalise an equipment or…
An issue business owners often face is whether to buy new or used equipment.
On one hand used equipment can be less expensive, but it’s not without risks. On the other, new equipment is generally more expensive.
When weighing the options as to whether to buy new or used equipment, it is critical to look beyond the question of price.
Buy New or Used Equipment – Do Your Research!
Many factors come into play, particularly if the use of the equipment is core to your business and the products or experience you provide to your customers.
The useful life of the asset is also important. Whether it is of a type that regularly needs to be upgraded due to changes in technology which may be needed to maintain your competitive edge or productivity.
To avoid later regret, doing your research and weighing up the pros and cons is critical.
To help you work through the process I have outlined some pros and cons of buying new or used equipment:
Pros of Buying New Equipment
Pros of Buying Used Equipment
Cons of Buying Used Equipment
How to decide whether to buy New or Used Equipment
The key to a successful outcome, like all business decisions is to do your research.
Questions to answer:
As can be seen, many factors need to be taken into account when deciding whether to buy new or used equipment.
The key as stated previously is to do your research and weigh up all the pros and cons.
In my experience, you get what you pay for!
If you would like to learn more or discuss the financing options available, give me a call