It’s cheaper to buy used equipment when starting a business. However, over time, you may find that the equipment is more expensive or may be worth a lot more.
There will always be debate about which restaurant equipment is best: new or used.
We’ll help you to understand the differences between new and used equipment.
Advantages and disadvantages of buying new equipment
This means the equipment should:
- Fully operational
- No defects
When you purchase new equipment, you can feel confident in your decision.
Five Reasons You Should Only Purchase New Restaurant Equipment
You’ll get the following benefits if you buy only new equipment:
- Higher equipment life expectancy in the majority of cases
- The most recent technology and advances
- Equipment failure is less likely
- Equipment warranty
- Reduction in downtime if equipment breaks
You can rely on your equipment longer if you buy new. However, there are some drawbacks to purchasing new equipment.
- Initiative upfront costs are higher
- Prices for slightly used models are higher than new models
Because of the higher initial costs for new equipment, the cost will be the biggest disadvantage. However, replacing old equipment with new equipment has the net benefit of saving money.
It is possible to not replace equipment that isn’t fully depreciated. However, this is dependent on the equipment’s current condition. If the equipment is in good condition and low maintenance, you may want to keep it rather than replace it. If maintenance and upkeep costs are prohibitive, you may want to consider buying new equipment.
One of the benefits of buying new equipment is tax advantages
Advantages and disadvantages of buying used equipment
While we’ve already discussed the benefits of buying new equipment for restaurants, there are many other advantages to purchasing used equipment. If the equipment isn’t electrical or mechanical in nature, then buying used might not be an issue.
Most issues occur when buying used appliances, stoves, or other equipment that is prone to mechanical or electrical issues.
Sometimes it comes down to the decision of whether to buy new equipment or repair old equipment. The net advantage, as outlined above, can help businesses understand which option is best for them in the long term.
There are many reasons to buy used.
Five Reasons to Buy Only Used Restaurant Equipment
The buyer will reap the benefits of used equipment in many ways.
- Money-saving. The main reason for the debate between used and new restaurant equipment is money-related. If a restaurant chooses to purchase used equipment instead of new, they may be able to equip their entire kitchen with the highest-quality equipment.
- There are still options for like-new equipment. This equipment could be a good choice if you are just starting out. You can purchase slightly used equipment, which may include a warranty.
- Reduce waste. You’re choosing to be environmentally friendly when buying used.
- Under the current IRS Tax Code, there are tax deductions for new and used kitchen equipment.
- Equipment that is used will appreciate slower than new equipment.
There are many benefits to purchasing used equipment, as a large percentage of foodservice businesses fail within the first year. The money saved on used equipment may be enough to hire employees and market the business.
It’s okay to buy used equipment to back up current or new equipment. If the equipment stops working, it could result in financial losses for a restaurant.
When choosing used equipment, the problem is this:
- Many pieces of equipment will be shipped from unknown suppliers, so you don’t know what you are getting. You may end up buying an item that is not working or grossly misrepresented due to a lack of standards or reliability.
- You don’t have the ability to provide the best equipment for your employees if it is old.
- There may be no warranty. This means that you might not be able to repair equipment if it has a defect.
- It could be that you are inheriting another’s problem. You may have equipment that is not up to standard. There’s also a possibility that the problem might be sporadic or not present during testing.
Hidden costs such as repair fees or the cost of replacing the equipment several times within the past month may also be involved. This information may not be provided by the seller. The equipment may still work today but you will need it to be repaired in the near future.
Do you need to choose between new or used equipment?
It all depends on your financial situation. You may need to purchase new equipment. They offer greater long-term value, require less maintenance, and are less likely to be damaged. It is possible to make a profit on used commercial kitchen equipment if it lasts for a month or less.
If the company has the funds to buy new, it is usually the best option.
Get a Quote on Commercial Equipment
Ask for professional advice and estimates about the equipment needed. Also, get a list of all supplies required to open a restaurant. Or you can contact a reputable supplier like restaurant supply houston tx.
Main Auction Services, Inc. is a family owned and operated company bringing more than 35 years of combined experience in the restaurant, food service and related industries to the internet sales marketplace. Main Auction Services offers a wide variety of quality, new and used restaurant equipment, kitchen supplies, appliances, furniture and decor.