What Businesses Need To Know Before Buying Refurbished Equipment
New equipment is nice to have, but it’s not always necessary or better, especially when you’re working with a tight budget and can’t afford to pay full price. The alternative is to buy refurbished equipment when you need to replace aging machinery. But choosing the right unit isn’t always easy and carries some risk.
The key is to know what to look for, what to avoid, and how to properly evaluate the condition of equipment before you buy.
The benefits of choosing refurbished equipment
Cost efficiency is the most obvious benefit, but it’s not always about bargains. Refurbished equipment lets you scale, test new technologies, and upgrade your operations without risking too much capital. Industrial sectors do this all the time, especially when sourcing cooling systems.
For example, air chillers can be expensive, but a refurbished chiller can cut costs while providing the same level of reliability as a new unit. The same logic applies across all industries, from IT hardware to office machinery.
- Lower upfront cost. Refurbished equipment costs significantly less than new equipment. That makes it possible for businesses to upgrade their infrastructure and stretch budgets further.
- Faster deployment. New units can come with long lead times, while refurbished equipment is usually available immediately. This keeps workflows steady and prevents costly downtime.
In addition to supporting the business, reusing equipment reduces waste and manufacturing emissions. For companies that prioritize environmental responsibility, refurbished equipment is a must.
The biggest risks of buying refurbished equipment
Saving money is great, but it can turn into regret if you buy blindly. If you’re considering buying refurbished, understanding the risks and how to mitigate them is essential.
- Unknown usage and maintenance history. Refurbished equipment doesn’t usually come with extensive documentation, so it’s hard to know the history of the unit. This means you could be inheriting someone else’s hidden problems.
- Limited or no warranty. Some refurbishers offer a 90-day or year-long warranty, but some don’t offer any guarantees. No warranty is a red flag. Never buy a used piece of equipment that doesn’t come with at least a short-term warranty.
- Discontinued parts. You might get a great deal on a used piece of equipment that works great for several years, but it can turn into a nightmare if replacement parts are hard to find or discontinued.
If you’re going to buy refurbished, only buy from a reputable company that has a solid reputation for refurbishing the type of equipment you’re looking for.
How to evaluate refurbished equipment
Pre-purchase inspections are critical. While every piece of equipment will be slightly different, the key is to think like a technician and bring in a professional if needed.
- Verify the seller. First, make sure the seller is legitimate. Legitimate businesses will provide performance tests, inspection results, and serial numbers. If these elements are absent, take that as a red flag.
- Inspect the physical condition. Check all the wiring, seals, bearings, controllers, and other components that are sensitive to wear and tear. Power up the unit and see how it performs under a real load. If you can’t do this, make sure you have a strong warranty.
- Verify history. Two identical machines can break down differently based on how they’re used. Runtime logs and maintenance history will help you discern which specific unit to buy.
- Call in a pro. If you don’t know what to look for when inspecting a piece of equipment, hire a pro to come with you. It will save money and frustration later on.
Pre-purchase inspections can reduce unexpected repair needs and are one step you can’t afford to skip.
Know warranty and return policy specifics
When you buy a refurbished unit it’s crucial to know the exact terms of your warranty and the company’s return policy. Warranty laws at the federal level are complex, but it’s crucial to understand how it all works.
Never assume a 90-day warranty will cover everything that could possibly go wrong – even if it’s not your fault. And never assume every warranty and return policy will follow the law. Many companies have policies that violate the law, and they get away with it because consumers don’t know their rights. You might have more rights than what’s outlined in your paperwork.
Smart buyers get the best results
Refurbished equipment can deliver performance and cost savings, but only for buyers who understand what they’re purchasing. With a pre-purchase inspection, a solid warranty, and a verifiable documented history, refurbished equipment can preserve your budget and boost your ROI.
