The Benefits of Used and Refurbished Mining Equipment

February 16th 2018

Providing surplus mining equipment is a central part of what The Mackwood Group does. When a mine begins the process of closing down, we have the contacts and experience to liquidate its assets. We serve the world’s mining, civil, and heavy equipment industries from our main offices in Blind River, Ontario, Canada, which is central to Canada, and North America. With our daily analysis of the world’s used surplus equipment market, we are familiar with the ever-changing conditions within the industry, what buyers are currently searching for and the values they are prepared to pay. As a result of our analysis, we know that there are many benefits to buying used and refurbished mining equipment over buying new.

Lower Cost

As in any industry, buying used equipment has a lower cost than buying new. In mining, the largest drop in depreciation for any machine happens within the first year. It comes “off the lot” shiny and new, but within weeks it goes through the process of getting its first dents, scratches, and required repairs. When you buy new equipment, you pay for the pristine quality of it. You pay for the concept of the newest technology, the shiny finish, the final checks of the parts by people who know those machines inside-out and their profit margin, the sum total of the selling features that may or may not prove useful in the pit, and so on. With a new machine, you may not understand everything that you’re paying for. With a used machine, you know that the price is the result of your negotiation with the seller and that you are paying far less for it as compared to new. Used equipment costs less – and if it’s still in good condition, it will work as dependable as a new unit.

No Operational Surprises

With a new machine, you assume that everything is going to work without issues, but in reality you are at the disadvantage of not knowing if all its functions are going to work. Since no one has used that particular unit before, it has no history. There is no mechanical record explaining the one or two unexpected problems that had occurred on this one piece of equipment before a final fix. With a used piece of equipment (if mechanical records were kept),and especially with refurbished equipment, you will know what you’re getting. You can see the records of this machine’s maintenance history and repairs, so you can estimate what the maintenance frequency will be, and whether its repairs will be expensive.

Maintains Value

As previously mentioned above, mining equipment’s largest drop in value happens in the first year of service. When you buy used, you avoid that first year of depreciation and the manufactures huge profit margin. Your equipment’s value drops less and less every year, so, if you buy a used piece of equipment then sell it again in a few years, your selling price will be closer to your purchase price. This is what we call good investment recovery.

More Options

There are many, many more options for equipment when you’re buying used. Instead of only having a catalog of the newest available equipment from the main manufacturers, you have access to every make and model in the recent past. Some older machines were made to work harder and last longer, so you may find some of those too! Check out our equipment sales page to see the many items we have for sale.

Quick Purchase and Sale

Getting new equipment can take time. And considering depreciation, if you need a machine in a short period of time and only for a short period of time, then it’s no help to you to buy new. This is similar in the case of purchasing equipment to match trends in the marketplace. If the metals market is seeing a large increase, then purchasing used or refurbished equipment that can go immediately to work will provide you with the opportunity to take advantage of a higher stock market price or the commodity prices that you are dealing in and have an immediate impact on your bottom line and higher profits. New equipment has in most cases lengthy delivery and setup times. Whereas used machinery can be bought relatively quickly, and if you need to sell it afterwards and it has been well cared for, you know that its value will not drop very much in the time it was used. This gives you the flexibility to get into production sooner, at less cost and reaping the rewards of higher investment recovery, than purchasing new. It also allows you to take on smaller contracts that you wouldn’t be able to otherwise take on. This is a way to grow your business.

Whether you are looking to buy, or sell your surplus mining equipment, we at The Mackwood Group of Companies Ltd will promote your assets at every opportunity, seven days a week, twenty-four hours a day. We have access to the largest selection of Mining, Mill Processing, Civil and Construction related equipment in the world. We attribute our success to a thorough knowledge of the market, worldwide contacts, aggressive advertising and a strong motivation to complete sales in order to receive a commission for our services. So please contact us. With your approval, it would be our pleasure to add you to our ever growing list of satisfied clients.

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