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Price of used equipment compared to new?

Mike W

Stainless
Joined
Jan 12, 2003
Location
Central Kali.
I am looking for a general rule of thumb for the value of used tooling or machines. Say the tool or machine is still available new and the used one is in excellent condition. What is a reasonable percent to pay for the used item compared to buying new? Thanks.
 
There are so many variables that will screw up any rule of thumb.
Geography, scarcity, type of machine, initial quality, and whether you can still make money with one, just to start.

For example, a new Monarch 10EE would be somewhere between $50k and $60k. There is a late model (80's) well tooled, supposedly almost new one for sale in LA right now at a dealer for $29k. Well, by your rule of thumb, thats about 50%- but it still seems like a lot to me.

Some tools are incredible deals, because they are oddball, or obsolete, or just not popular. Moore Jig Bores that would cost $75k to $100k new, selling for $2500.
Other tools like Haas VMC's have an unreasonably high resale value- sometimes as high as 95% of new.

With tools that are ten years old or newer, its the rare dealer that will go as low as 50%. They shoot for more, often lots more.
 
50% for a machine that you can still buy new makes sence to me. You wouldn't have a warrenty which may or may not be that big of a deal. I am just looking for a point where I would say no to a purchase of a used machine.
 
Ries has it right, no "rule of thumb"....too many variables...and he states many of them well.

Someone here once asked what it typical dealer profit on machines....same answer....so many variables I can't even type them all, but include machine popularity, condition risks (hooked to power or not, etc..esp for CNC), rigging costs, weight/size (warehouse space...HBM's often not good cost to profit vs hassel ratio for example) and on and on... But they are all running thru my head when I decide how high I will go to buy a machine.

I have a 1993 Davenport CNC multi spindle Screw machine that is very low hours, pristine, like new in condition and appearance, that cost over $400,000 new. If I could get even 25 percent of new on that one, I'd be dancing in the street !
 
I didnt say I didnt "like" 50%- we all would.
Just that in real world situations, what you would like is not always what you get.
I had a girlfriend in high school who used to tell me "wanting isnt getting" :D :D

Think about it like used car prices- I can sometimes buy a totally oddball car nobody wants, like say a Gremlin, for a couple hundred dollars- but a similar age and condition Dodge Challenger would go for a bit more money.
 
Here is an example. A guy has a BP clone, 3hp, variable speed, and wants $3000 for it. The condition is like new and probably wasn't used very much. You can buy the same machine for $4000 but will pay freight and sales tax. Which way would you go?
 
I'd pay $4,000 for the new one, but those folks that buy late model Honda Accords would go for the used one. (if you need that analogy explained I'll be glad to ;) )
 








 
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