4 Reasons to Consider a Used Industrial Generator
Businesses and organizations of all types rely on electric power. From office environments to large manufacturing facilities, electricity powers production. What happens if power is disrupted? Operations are halted and revenue is lost. Backup generators are essential to a prepared business or organization.
At the same time, new generators are costly. When the time comes to replace or add generators, the impact to the bottom line can be intimidating. Used generators can be a good alternative to new generators. Here are five reasons why.
1. Lower Cost
Cost savings is the most obvious benefit of buying used. Used generators cost an average of 40%-60% less than their new equivalents, even those used over a short period of time with low hours. When a company needs to lower expenses, buying a used generator instead of a new one is a simple way to reduce costs without feeling an impact.
Organizations often have to wait for new generators to be built. During periods of high demand, you may need to wait a few months from order placement to delivery. Used generators are immediately available. Companies that have a time-sensitive need can reduce their risk by buying used.
3. Lower Depreciation Costs
Generators are similar to cars in that they begin to depreciate the minute they’re “driven off the lot” (i.e. leave for a customer’s facility). The steepest depreciation happens over a period of one year. You can avoid bearing the brunt of depreciation by buying used. The sweet spot for age is two years, when the worst of the depreciation has been experienced but there’s still a lot of life left in the machine.
4. Lower Cost of Insurance
Also similar to the situation with a car, used generators are cheaper to insure than new ones. Insurance premiums for a piece of equipment are typically based on the replacement cost. It's significantly less expensive to replace a used generator than it is a new one, so the insurance premiums are lower for used generators.
What to Look For in a Used Generator
Used generators do come with their own set of risks, however. You don’t have the benefit of a warranty, and you need to do your homework to make sure that the previous owner took proper care of the generator so you’re not surprised by a shorter lifespan than you anticipated. Here’s what you need to consider when you’re shopping for a used generator.
- Low Hours and Age — How much life is still left in a generator? Different types of generators and different manufacturers will have different life expectancies. Find out the average life expectancy for the unit you’re considering and check the unit’s odometer read-out to see how many hours it’s been run.
- Quality Manufacturer — As with any product, the manufacturer will affect the value. Read ratings and reviews to learn which manufacturers have good reputations for quality products. Also consider the availability of replacement parts for the unit you’re considering.
- Reputable Reseller — Many resellers neglect to verify the condition of the equipment they sell, and they don’t have reliable customer service if something goes wrong. These resellers are typically trying to offer the lowest price, cutting out testing and refurbishing and customer satisfaction to do so. Decide what’s important to you in a relationship with a reseller and seek out one that has what you’re looking for.
A used generator can be a smart decision that saves businesses and organizations significant money. The key to making a good purchase is to do your homework and partner with a seller who has a track record of happy customers.
Considering buying a used generator? Give us a call at 864-4249-0943 to talk about your needs and get questions answered.