And almost right away, my brain kicked into “and getting used equipment instead alleviates that” (since Section 179 eligible equipment can be new or used.)

So let’s talk about used equipment a little, specifically the advantages of used equipment over new (note: this assumes used equipment in decent shape and still useful in a technological sense.)

Used Equipment Is Less Expensive – You will always save money with used equipment over new. And in many cases, the used equipment is still quite relevant when compared to new. Sure, a used computer with a CRT monitor can be borderline useless due to rapid technological advances, but a used dump truck or bulldozer can typically do the same job as a new one can.

You Can Take Delivery of Used Equipment Right Away – This is a big benefit, as exemplified by my last post. Used equipment is already assembled and complete, and more importantly, it’s simply “there”, meaning you can take immediate delivery of almost any used equipment purchase. Anecdotally, I know someone who must wait several months for a new piece of equipment that needs a delayed chipset. And I know someone else for whom we financed a used skid steer last Friday, and he’s undoubtedly using it as I type.

You Can Finance Used Equipment – We will happily provide used equipment financing for most business equipment. Even private party used equipment purchases can be financed, which can be a big help to a lot of small businesses (tooting our horn here, because not everyone offers this.)

Used equipment has always been popular with small and mid-sized companies. And in 2021, the “we can use it immediately” aspect is another clear checkmark in the “advantages” column, because, assuming the equipment itself is eligible, your Section 179 deduction is safe. 

The reasons for the popularity are pretty easy to understand: CNC machines are incredibly useful to all manner of industries, and as technology increases, they become more affordable to businesses. In fact, our small and medium business customers finance CNC machines regularly. 

For those who don’t know, the “CNC” stands for computer numerical control. Basically, a CNC machine handles tasks via CAD software that used to be done manually. Cutting, drilling, pressing, shaping… these tasks can now be handled by CNC machines with astonishing speed and precision. So companies can now invest in CNC lathes, drills, cutting tools, routers, and more. I’ve even seen small consumer CNC routers that are perfect for a home garage or amateur/hobby woodshop. Neat.

With the rise in 3D printing, I’ve seen some publications call 3D printers CNC machines. But then I also see videos like this one showing the differences (note – this is also a great video for a basic primer on CNC machines). The stated difference is CNC machines subtract material, while 3D printers add it. That said, the market will eventually bear this out – maybe someday everyone will consider 3D Printers CNC machines (and Crest Capital will still finance it all!) 

On that note, we’re very proud that we’ve been financing CNC machines since our beginning in 1989. We recognized right away how much businesses needed these, and saw the potential for small business CNC machine financing, especially as the technology increased and the CNC machines got more compact in size and the price became more affordable. 

Along the way, we’ve also become experts on these machines, and our reps are well-schooled in how they work, and what type of CNC machine leasing or financing makes the most sense. So whether our customers are buying their first CNC machine (which is always an exciting step) or buying their 10^th, we are honored to help make it happen.

I first wrote about used equipment financing in spring of 2008, when gasoline prices were going crazy, and whispers of a financial crisis were just beginning to be uttered. My point then was financing used equipment was a great way to save a few bucks, and I posted about it because not many people knew they even could finance used equipment.

Well, the more things change, the more they stay the same, and I’m going to reiterate the same message for my 2009 audience, because if anyone needs to save money, it’s businesses in 2009. And I’m pretty sure some of them (just like last year) have no clue that financing used equipment is even possible.

So to those people, I say “yes”, many equipment finance companies will finance used equipment for you. This could mean a used equipment lease, or a straight finance. Of course, there are a few caveats, which should be pretty obvious. The used equipment that is to be financed has to still carry a decent value (after all, nobody is going to finance garage sale type equipment), and it has to be a type of equipment that will still hold a certain value at the end of the lease or finance term. But that’s true with almost anything you want to finance, used or new.

But even when you factor in those two basic conditions, many options come to mind. Financing used manufacturing equipment, for example, is a very popular option here at my company. That’s because most manufacturing machinery holds value for years… even decades. I know of fabricators using steelworking equipment made before I was born. Some of this equipment is still worth quite a bit today. And if it’s worth something, many equipment finance companies will finance or lease it.

Used equipment financing is a decent enough part of my day here, and it’s a shame more people don’t know it exists. Hopefully, I changed that a bit today (just like I did last year!)