Anyone who owns or manages heavy equipment faces the decision at one point or another whether to re-build or to simply buy new equipment.
One of the things every business using heavy equipment will have in common is the goal to realize the maximum possible value of their equipment. Heavy machines do important work that keeps production moving and affects the bottom line as well as overall efficiency. Below are some advantages of a re-build.
- Engines – Currently, your machine more than likely has a Tier 3 engine (no emission control) – If you buy a new piece of equipment, you will be purchasing a machine with a Tier 4 engine that the emissions system has been regulated by the EPA (Environmental Protective Agency), often resulting in lower HP ratings and more expensive maintenance costs and a larger fuel consumption rate due to DEF (Diesel Exhaust Fluid) and the regeneration process.
- Savings – Depending on the type of equipment, a refurb CAN offer a substantial savings (up to 65%) compared to buying a new piece of equipment. Equipment managers are initially drawn to the option of refurbishment because of its cost benefits. Refurbishment typically costs about half as much as buying new and can bring a machine back to like-new condition.
- Time frame – Total re-build time in 16+ weeks in some cases versus 12-18 months wait time for a new (Taylor Machine Works) machine.
- Warranty – Depending on the type of equipment, most refurbs offer a (1) year warranty, similar to the manufacturer’s warranty of a new piece of equipment.
- Re-build components – A re-build includes changing out all of the major and most of the minor components of the machine. Calibration and settings adjustments are performed when applicable as well. The finished product is a newly revamped version of your machine that will run and perform like new.
- Tax advantage – The refurb price can typically be fully deducted from one’s taxes. Refurbishment increases resale value and can provide tax benefits to a business, depending on how it’s structured. A refurbished asset can be recapitalized on a depreciation schedule at half the value of a new machine.
If you are interested in learning more about the specifics of a re-build, please visit us here and contact our Taylor specialist.