Benefits of Purchasing Used Machinery

In today’s rapidly changing and economically challenging environment, businesses increasingly turn to second-hand equipment as cost-effective alternatives to new purchases. Numerous benefits, including significant potential financial savings and desire to grow more sustainable solutions, drive this shift. These advantages allow businesses to evolve while making the most of used machinery.

Financial and Logistical Benefits

One of the primary advantages of purchasing used equipment is the significantly lower cost compared to new. According to Oliver Marzi, International Asset Sales Manager CT&I at DLL, in 2024 and 2025, rising costs due to supply chain disruptions and component shortages have made new machines approximately 30-40 percent more expensive. Furthermore, used equipment offers better value over time because it depreciates slower than new.

Used equipment offers greater flexibility in times of frequent supply chain disruptions, such as the recent port strike. Because it is instantly available, companies may make decisions at the last minute without waiting for long periods to buy new equipment.

“Regarding delivery and implementation, used equipment has a clear advantage. Many manufacturers have reduced production capacity, further lengthening the delivery times for new equipment, while used options are readily available,” says Nicola Zingraf-Bolton, Head of Physical Asset Data Management at DLL.

In contrast to new models, which frequently have lengthy lists, used second-hand equipment can be purchased quickly. Michelle Why, Asset Sales Specialist Healthcare at DLL, recognizes a similar situation with specialized items like ambulances, where waiting lists are full every year, and customers are turning to used options, which are typically more available.

Sustainability

Investing in second-hand equipment and promoting the circular economy can provide major sustainability advantages. For example, buying used equipment can significantly lower manufacturing greenhouse gas (GHG) intensity since it avoids the emissions that would otherwise be required to build a new asset. By tracking the usage history of equipment, businesses can ensure it meets environmental and regulatory standards. Beth Salus, Equipment Evaluation Specialist at DLL, emphasizes, “As sustainability becomes a key focus for businesses, it’s increasingly important to balance economic and environmental considerations. While economic factors may take precedence in regions like Africa and Eastern Europe, meeting emissions standards remains crucial for market access.”

Circularity can be further enhanced by updating or refurbishing certain used equipment with modern components. By doing this, machinery's lifespans can be increased by 20-30%. Salus adds, “DLL is committed to assisting these markets through collaborations or contributions, as used equipment may greatly benefit circular economy in all regions”

The global market for used equipment is anticipated to expand at a Compound Annual Growth Rate (CAGR) of 5.2 percent from 2023 to 2028, highlighting its growing significance. Choosing second-hand equipment not only reduces the demand for raw materials but also lowers the energy consumption involved in manufacturing processes. Moreover, it helps decrease the amount of waste that ends up in landfills, contributing to more sustainable solutions through better use of resources.

Performance, Reliability, and Risk Mitigation

Used equipment that has been adequately maintained can sometimes outperform new models. While new equipment might feature the latest technology, well-maintained used equipment can be just as dependable and effective.

When buying pre-owned equipment, one of the possible concerns can be uncertainty regarding the condition or history of used equipment. To mitigate this, it is important to provide transparency. Complete information on the equipment, including extensive inspections and service records, should be made available to customers. Before completing the sale, any possible queries can be addressed using telematics insights regarding the asset's actual utilization, health, and maintenance diligence during its life cycle. This can also help to increase buyer confidence.

Technological Relevance

It is crucial to understand the intended use and lifetime stage of used equipment to ensure asset relevance. Some used equipment can even be remanufactured, as not all end users need the newest technology. Salus states that this strategy increases the equipment's lifespan and promotes circularity.

Strategic Advantages

Buying second-hand equipment might provide strategic advantages in many cases. For example, used ambulances and standby equipment with little use can offer cost-effective solutions. Additionally, businesses can reduce their financial risk by purchasing old equipment to test new services or markets without having to make significant initial investments.

Market Demand

The market demand for specific types of equipment can significantly influence the decision to purchase new or used equipment. According to Article 58 of the French Circular Economy Law, for instance, " As of 1 January 2021, the goods acquired annually by the public authorities shall be obtained through the reuse or integration of recycled materials in proportions of 20 percent to 100 percent, depending on the type of product.” This law mandates that used equipment be included in public procurement. Additionally, the Loi AGEC (Anti-Waste and Circular Economy Law) supports these efforts by setting broader goals for waste reduction, reuse, and recycling to promote a more sustainable economy.

Gaurav Sharma, Head of Circularity and Life Cycle Management at DLL adds, “Used equipment offers new pathways for sustainability and business ambitions by reducing waste and thus minimizing environmental impact, as well as enabling extension of equipment life and business continuity.”

The DLL Equipment Showroom Advantage

At DLL, we recognize the diverse needs of businesses and the increasing significance of sustainability. With our expertise in financing used equipment and refurbished machinery, and our dedication to transparency and customer satisfaction, we are a reliable partner in your journey to cost-effective operations.

For first-time buyers considering used equipment, it’s important to:

• Understand the equipment’s history by requesting service reports and information on any ongoing warranties or service agreements.
• Ensure there is a good inspection of the equipment and transparency of the results.

Whether you’re looking to save on costs, reduce your environmental footprint, or ensure quick delivery and implementation, DLL is here to help you navigate the benefits of purchasing used equipment. Explore available assets on Equipment Sales | DLL where you can bid on and buy quality used equipment with worldwide delivery available.