Second-hand vs. New: Which Choice is Best for Getting Your Money Back?

By comparing the data, it analyzes the differences in cost, payback period, and long-term profits between second-hand and new equipment to help entrepreneurs, freelancers, and small business owners make more profitable investment decisions.Key words: Payback period for used equipment; return on investment for new equipment; cost analysis of used versus new equipment.

Why is the payback period so important?

Whether you are buying a coffee machine to open a coffee shop, or a computer to open a studio, everyone worries about how long it will take to make back their investment.Used equipment is cheaper, but you worry that it won't last long. New equipment is stable, but the cost is high.We'll use real data to break down the options and see which one is better suited to you.

Costs: Can second-hand really cut costs in half?

This is the first hurdle in buying a machine.

For example, a brand new industrial-grade printer that sells for NT $ 10,000 new might go for NT $ 4,000-6,000 second-hand.It looks like you've saved 40-60 %, but don't be in such a hurry to place your order. Research shows that 30 % of buyers on second-hand platforms have had to deal with hidden defects, and have had to spend an average of NT $ 800 on repairs.

It's a hidden bill that's easy to overlook.

New machines usually come with a one- to three-year warranty, but you have to pay for repairs on second-hand equipment.As an example, the average annual maintenance costs for a used notebook computer are 200-500 yuan higher than for a new one, but the total cost of ownership over three years is still 2,000 yuan less than the purchase price of a new machine.

Payback period: The time it takes to recoup your investment might surprise you.

It has the edge of being able to get started very quickly.

Second-hand equipment allows you to open 1-2 months earlier for 60 % of the cost.For example, if a tea shop owner saves NT $ 20,000 on equipment, he will have to earn an extra NT $ 333 a day just to recoup the cost of the new machine. This is particularly hard for a small business owner who is already cash-strapped.

The long-term variables.

Data from the restaurant equipment industry shows that second-hand refrigerators last an average of 4.2 years, 2.8 years less than new ones.For a plan that is operated for more than three years, the monthly depreciation cost of a new machine is 15 % lower than that of a used machine.

How do you choose the smartest?

Adapt strategies to the industry.

For pop-up stores or seasonal businesses, used machines are more flexible, but for production lines that need to operate long term, new machines are more reliable.Educational institutions that use second-hand iPads for teaching save 57 % on the cost of replacing devices every two years, and avoid the risk of depreciation due to technological obsolescence.

Balance your "psychological account.

Accepting used equipment requires a greater willingness to take risks.It is recommended that 20 % of the budget be reserved as a contingency fund, and that priority be given to second-hand dealers that offer a warranty of at least three months.Comparing the two, the return on investment for the second-hand equipment with warranty was 29 % higher than for that without warranty.

A true story will tell you the answer.

The owner of a photography studio, Xiao Lin, saved NT $ 38,000 by using secondhand cameras with new lenses. In eight months he had recouped his investment. But a competitor who insisted on using all new equipment had to spend NT $ 52,000 more to achieve the same result.But Wang, who does baking training, says that the second-hand ovens have been breaking down and affecting the courses, and that this has actually hurt her reputation.

(For the illustration, we suggest a bar graph comparing costs, a curve graph showing the payback period, and a table showing the suitability of different industries.