Capital assets are essential in industrial or manufacturing organizations. When purchasing such properties, the more common alternative is to buy new ones. However, looking for used ones has its advantages, even if there is unwarranted
stigma to it.
The following are some of the benefits of buying used capital assets:
Lower costs: The most obvious advantage in opting for buying secondhand is the lower purchase price. The percentage of the cost that can be saved typically ranges from 30 to 70 percent, and the difference in the price can be allotted to other investments or other valuable expense streams.
More options: Models are always upgraded or modified over time, replacing previous ones that some companies would prefer. By looking at used capital assets, buyers are presented with a wider range of variety – ones that are cheaper.
Depreciation: Capital assets generally undergo a higher rate of depreciation, compared to other types of assets. A huge percentage of a property’s overall depreciation occurs during the first year of its useful life. By buying a used, already-depreciated asset, its value remains relatively stable for the remainder of its lifespan. It still has good resale value should the company eventually decide to dispose of it or upgrade it.
Ryan Jacob is the CEO of CAE (Capital Asset Exchange & Trading), a company that strives to create a transparent and connected market of high-technology manufacturing equipment. For more information, visit its official website.