(CNBNewsnet)(August 30, 2018)--Buying used equipment for your business can be a risky move to make, but if you take the right precautions and think about your purchase carefully, it is less likely to end in a disaster. For many businesses, there is no other way to go than to buy new every time. However, not all businesses have a budget big enough, and there are times when it’s simply not the best option. Buying used is a time-consuming process, and you need to be aware everything is “sold as seen.” You need to consider quality, price and buying experience as well as the following points.
Choose a Reputable Seller
You’ll be able to avoid lots of headaches in the future if you do your research on the seller first. If it’s a company or broker you’re buying from, look at public company records to check how long they’ve been operating. Furthermore, see if you can find any company reviews online. You can also check customer testimonials, but be wary of those that aren’t very specific about the buying experience and the quality of the equipment.
What Are Your Requirements?
Think about the size of the equipment you need, the model, whether there are any attachments and how it will perform. It’s possible there will be more than one option that suits your needs, so do your research. Ask the seller about the performance and don’t assume that because it suited their purposes, it will suit yours as well.
Ask for Some History
You need to make sure there are no liens against the equipment, and it’s not stolen. Ask the seller for the title of the equipment. Documentation should be available, and the seller should be able to prove there are no liens against it. There are organizations you can approach, or your local bank may be willing to help. Alternatively, research it online. If you’re unsure whether the machine is stolen or not, you need to take down the serial number or personal identification number and check with the police department or an online register. Checks such as these are easy to make, so it’s worth taking the time to do them.
The tax benefits of buying used equipment are not the same as buying new. Previously, new purchases would have reaped the biggest tax rewards. However, from 2018 onwards, there are also tax breaks for those buying used equipment. From now on, it is going to be possible to write purchases off, but not to the same degree. If you want to know more about tax breaks, there are a number of different companies you can contact, depending on your location. Tax Return, for example, can answer questions about Australian tax law.
Other features to check before buying something that has been used before include the condition and levels of the fluids, how long it has been operated for and whether there are any obvious signs of wear and tear. If possible, ask about a test run or talk to operators of the machinery about its operation. There are advantages to buying used equipment, so it’s always worth checking out.