Investing in heavy equipment usually requires a substantial capital investment. So it’s not something most businesses want to rush into.
Obviously, getting the best price is important. But there is more to capital equipment expenditures than just getting a great bargain. You also want to ensure that the equipment you are buying is durable, that your purchase is protected by a comprehensive warranty, and that you are going to get the most for your money.
The last thing you want when spending big bucks on heavy duty industrial equipment is to experience buyer’s remorse. To help you ensure you are making the best possible decision, here are some essential questions you should ask before signing that big check.
Before You Buy, Talk to Current Users
When you were growing up, there probably was always that one person on your block who was the first to buy the latest gizmo. While this may have made them cool while you were in school, in business it pays to be more cautious.
Before you buy any major piece of industrial equipment, ask the dealer for the names and phone numbers of other people who have recently purchased and are using that same vehicle or tool. Then give them a call to see how they like it, what problems if any they are experiencing with it, and whether or not they would recommend that you buy it.
This gives you the benefit of learning from other people’s mistakes or benefitting from their positive experiences with that particular piece of equipment.
Look at Longevity
From an accounting perspective, the value of your new equipment likely will be accrued over a long depreciation, possibly as long as 10 or 20 years. Consider whether or not it actually is designed to last that long and if your business will be configured in such a way that you will still be using that same vehicle or tool in 2027 or 2037.
Think about what changes you anticipate in your production and operations process over the course of the life of the equipment that could affect its use or performance.
Ask for Technical Specifications
The more you know about your purchase, the better informed you will be. Ask the dealer to provide you with the technical specifications or owner’s manual before you buy. If they can’t provide it for you, ask to be connected with the manufacturer.
Give these technical specifications to your facilities and maintenance people so that they can assess the complexity and durability of the equipment. After all, they are going to be the ones who will have to maintain and repair it should you decide to buy.