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Article:

Should You Buy New or Used Warehouse Equipment?

When your company is looking at purchasing pallet racking or other equipment for your warehouse, you’ll have one big question to answer: new or used? There are pros and cons to both options, and you’ll need to carefully weight each side in order to determine which one is best for your material handling needs.

Struggling to decide which option is right for you? Our project managers can help. We have access to both new and used warehouse equipment inventory so we can help you find exactly what you need at a great price. Read through the pros and cons and then get in touch with a member of our team to find the equipment you need.

Should You Buy New or Used Warehouse Equipment?

The Pros and Cons of Used Equipment

When it comes to used equipment, it’s important to know where your used warehouse equipment is coming from. Many warehouses choose to sell their old pallet racking systems and other equipment to distributors like DAK Equipment and Engineering. They do this primarily as a way to free up space for their new equipment and recover the costs of the initial investment. The reasons it’s important to know where your equipment comes from is because this can have a big impact on the safety and quality of the used equipment that you are purchasing. A reputable distributor will take that used equipment and inspect it thoroughly before selling it on; if it’s in need of any repairs, they will be done before the equipment is sold. Some distributors also offer warranties on the used equipment that they sell, giving you peace of mind that if something does go wrong you’ll have options to recover your costs. Make sure that you carefully look at any warranties, terms, and conditions that come with the used equipment before you make a purchase. That will help you make a smarter buying decision.

Pros:

  • Less expensive than new equipment
  • Allows you to expand your warehouse more rapidly without spending more capital

Cons:

  • Could need repairs that could put safety in jeopardy
  • May not come with a warranty that protects your investment

The Pros and Cons of New Equipment

There are a lot of benefits to buying new warehouse equipment. You know it’s coming to you undamaged from previous ownership and can get exactly what you need, usually with a great warranty. It’s sometimes easier to purchase new equipment that’s compatible with your old equipment, versus trying to find the same items in the second-hand market. But all of that convenience comes at a higher price tag, as the up-front costs of new warehouse equipment are going to be significantly higher than buying used. This can limit how quickly you can expand your warehouse and may leave you lacking the equipment that could help your productivity. This could be an especially big concern when it comes to automation; you might not be able to automate as quickly and that could leave your warehouse dangerously out-of-date and unable to compete in a growing market.

Pros:

  • Easier to find equipment that’s compatible with existing equipment
  • You can get exactly the equipment you need without searching the second-hand market

Cons:

  • More significant upfront investment
  • May have to buy in smaller quantities to stay in budget

So Which Is Right for Your Warehouse?

So is new or used warehouse equipment the right choice? It’s not always clear and may depend on a number of factors, such as what you need to purchase, your budget, and how you are going to be using the equipment. A warehouse consultant can help you sort out your options and find the one that’s best. If you do decide to purchase used equipment, make sure that it has been thoroughly inspected for damage first; this is something that DAK Equipment & Engineering does to ensure that we’re passing on only the best pallet racking and other used equipment to our customers. If you decide that buying new is the right choice, then you’ll want to get quotes from several companies to ensure you are getting the best deal. If you follow these guidelines, you should end up with equipment that works well for you over the long term no matter whether you choose new or used.

Want to learn more about new and used warehouse equipment and which one is right for your business? Talk to one of our project managers today. They’ll help you find the right equipment, whether that’s from our huge selection of in-stock new pallet racks or saving money on used equipment. DAK is stocked with the equipment that you need and will ensure you get a great deal on quality gear. Give us a call today or contact us through our website to start working with a project manager in your area.

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