Should you buy used or new restaurant equipment?

When going into business, it’s often much cheaper, initially, to purchase used equipment. But over time, this used equipment may cost you more money, or it may last well beyond its typical lifespan and be a steal.

I’m gonna try to help you understand when buying new vs used equipment is ideal.

When buying only new equipment, you’ll benefit from:

1. Longer equipment lifespan in most cases
2. Latest technology and advancements
3. Less of a risk of equipment breaking down
4. Warranty on equipment
5. Reduction in downtime if equipment breaks

Buying new allows you to rely on your equipment for longer. But there are also some disadvantages to buying new, too:

1. Higher initial upfront costs
2. Higher costs for slightly used versus new models

We’ve discussed why buying new restaurant equipment is a better idea, but there are a lot of advantages to buying used, too. Of course, if the equipment being purchased isn’t mechanical or electrical in nature, buying used may not be an issue.

When buying used, you’ll find that there are several reasons to do so:

1. Saving money. A main reason for the debate between used and new restaurant equipment is money-related. A restaurant may be able to outfit their entire kitchen with high-end equipment if they choose to buy used instead of new.
2. Like-new equipment does exist, and this equipment may be a good option if you’re just starting out. When buying like-new, you’re purchasing slightly used equipment that may even come with a warranty.
3. Less waste. You’re choosing to be environmentally-friendly when buying used.
4. Tax deductions do exist on new and used kitchen equipment under the current IRS Tax Code.
5. Used equipment will depreciate slower than new equipment.

There’s also no harm in buying used equipment as a backup for current or new equipment that, if ceased operation, could cause a restaurant to suffer financial losses.

The issue with choosing used equipment is that:

1. A lot of equipment will come from an unknown supplier, so you never know what you’re receiving.
2. Old equipment is likely outdated, so you’re not able to offer the best possible equipment to employees.
3. Warranties may or may not exist.
4. The condition of the equipment may be below standard, and there’s a chance that even after testing, the issue is sporadic and didn’t present during testing.

So, should you choose used or new equipment?

It depends on your financial situation. New equipment should offer more long-term value, less upkeep and less worry that something may go wrong with the equipment. There’s a big difference between new and used commercial kitchen equipment, and if used means a month and not years, it may be a good buy.

Generally, if the business has the finances to do so, buying new is the best option.

Source: How to Choose Between Used and New Restaurant Equipment