Used Equipment: Vetting the Value

One thing photos may not reveal is whether a particular machine suffered structural damage when it was disassembled.

“You’d like to think that nothing dropped and hit the floor,” says Jackson. “Structural damage is one of the most-difficult things to get past.”

Click photo to enlargeSalem’s Spears offers a specific example of just such a problem. The company was called to take back a piece of equipment sold by its glass division to an owner who shut his doors and walked away from his business.

“The landlord needed the building to be emptied, so he hired a rigger to come and hook onto the piece of equipment and drag it outside,” Spears relates. “We disassembled it and brought it back here, and that’s when we found breakage to several parts that wouldn’t have broken if the machine had been handled properly.”

EXTRA, EXTRA

Then there are the extras – not all of them options – which a new machine will come with, and that may or may not be included in the sale if you’re buying used.

“You need to ask, ‘What are the extras you’re getting with the machine, and are all the parts there?’” says O’Connor. “For instance, if it’s a CNC machine that uses vacuum pods, but it comes with none of them, that’s a problem. Or, how many tool holders does it have? If there are 10 and you need 12 just to start it, that can add up.

“Many machines require specialized wrenches. You can pay $80-$100 for a wrench and you may need four or five of them. Those costs add up.”

He adds that other niceties, such as calipers, indicators and a tool-height gauge typically aren’t stored with the machine, and may become separated from it in a hasty sale conducted by someone who doesn’t know what they’re doing.

In one instance, he says, he was called in to evaluate a saw from which the shop owner removed the laser.

“If you didn’t know it came with a laser, you’d think it looked pretty good,” he says. “However, that laser would be at least $1,000 to replace. It would have been much easier to sell with the laser.”

Then, there’s the matter of software. CNC saws and production centers usually require  proprietary software to run the equipment, and that software (or an authorizing code) may or may not be available to a buyer.

“A lot of times the customer may have the software, but a physical key – typically a USB dongle that identifies the computer is capable of running the software legally – may not be included,” says Rollin’ Stone’s Jackson. “If that key’s not there, it can cost anywhere from $3,000-$10,000 to replace. It’s also something the buyer needs to be aware of.”

Granite Machine’s O’Connor agrees. He tells of one shop where he was hired to go in and dismantle a machine being repossessed. The employees weren’t paid for their last two weeks of work, and he says some took their anger out on the equipment.

“As they left, they were sabotaging the machines, deleting software files and taking the dongles,” he says. “To replace those is a fortune.”

Nor is that the only part of the software saga that can cause problems. While some companies make updates available to the original buyers for a nominal cost, if you’re buying used there’s no guarantee the same relationship will continue.

“Some companies – especially those overseas – will work with you real well, but others will not,” says Stone Equipment’s Kruschke. “I know one Italian company that  told a guy they would send him new interface software and everything else he needed, along with instructions on what computer to buy, and it was less then $3,000.

“However, I know of another company where that bill came to $23,000. You have to do your legwork up front.”