By: Derek Abel on Oct 31, 2022 2:55:12 PM
Are you in the market for some new (to you) business equipment? If so, you might wonder whether buying from a private party or a dealership is better. There are pros and cons to both, but today we're going to focus on the positives of buying from a private seller. Keep reading to learn more!
The Case for Buying from a Private Party
Consider buying from a private party instead of a dealership for three main reasons: cost, return on investment, and fewer restrictions.
Cost: It's no secret that used equipment is generally cheaper than new equipment.
But did you know that buying from a private party can be even cheaper than buying from a dealership? That's because dealerships have overhead costs that they need to recoup, and those costs get passed on to the customer. When you buy from a private seller, you're just paying for the equipment itself—no markup for the middleman.
ROI: In addition to being cheaper upfront, buying used equipment can be a wiser investment in the long run. That's because used equipment has already taken its biggest depreciation hit—meaning it will hold its value better over time. So, if you decide to sell the equipment down the road, you're likely to get more money back than if you had bought it new.
Fewer restrictions: Finally, there are often fewer restrictions when buying from a private party. For example, many dealerships won't sell to customers who don't have an established business. But when you're dealing directly with the previous owner, they usually couldn't care less whether you're just getting started or you've been in business for years. Additionally, some dealerships won't sell certain types of used equipment.
The Case Against Buying from a Private Party
Of course, some potential downsides to buying from a private seller are worth considering before making your final decision. These include the following:
Warranties and maintenance plans: One of the significant benefits of buying from a dealer is that they usually offer some warranty or maintenance plan. This protects you in case something goes wrong with the equipment soon after purchase—and let's face it; things often do go wrong unexpectedly. When you buy from an individual, on the other hand, any repairs and maintenance will be entirely up to you (and your wallet).
Customer service: Another potential drawback of buying from a private party is that you will only have someone to turn to for customer service if something goes wrong. With a dealer, you can usually call or stop by, and they'll help you out. But when you're dealing with an individual, you might need help getting in touch with them—or they might not be very helpful even if you do.
Documentation: When you buy from a dealer, they take care of all the paperwork for transferring ownership of the equipment. When you're dealing with an individual, however, it will be up to you to ensure everything is documented correctly—and if it isn't, there could be severe consequences down the road.
As with anything in life, there are pros and cons to buying used equipment from a private party sale instead of going through a dealership. Ultimately, though, we believe that the pros outweigh the cons—especially when working with a reputable company like Huddle Business Capital. We'll work with startup and established businesses to help them get the used equipment they need while ensuring all the documentation is handled correctly, so there are no surprises later on down the road. Deciding on which used equipment to buy for your business is a difficult task, but huddle business capital can help. We offer financing options with no age or mileage restrictions to get the best bang for your buck. Contact us today to learn more!