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Disadvantages of Second Hand Equipment (i) Less Backup As they have been owned previously, it is likely that a second hand product is too old to come with any guarantees unless bought from a shop which offers one with the sale. This means that in the event of any future problems, all service and repair costs will have to be paid for, if they are even repairable at all. (ii) Higher Risk Buying a product second hand is more risky than buying a new product, as you can not always be sure that the product is as described. Although a product may appear to be in good condition, there may be an underlying fault that is not apparent on inspection. If a product is faulty, you should be able to get your money back from a shop. However, although by law the goods must be as described and fit for their purpose, it will be almost impossible to recover money from an individual if the goods they have sold are faulty. (ii) Cosmetics A second hand product has already been used; this means that it could have cosmetic damage, spoiling the look of the product slightly. This should not affect the usage of a product, but if your office is seen by your customers, you may not wish to have scratched or dented equipment on show. Refurbished Equipment A refurbished product is one that was bought new, and was returned with cosmetic damage or a fault that has since been repaired. They are available mainly from retail stores, who sell large number of items, and use refurbished bargains to clear those few that have been returned and fixed. Advantages of Refurbished Equipment (i) Cost
(ii) Guarantee Although refurbished products are much cheaper than new products, they still come with the same full guarantee that the new product would have. This means that you can save substantial amounts of money, without risking losing it on a product that does not work. (iii) New Even though refurbished goods are not sold as new, they are effectively new products. They may have been used briefly, or as a display model, but they will not normally have undergone the same amount of use as a second hand equivalent. This means there is less wear and tear on the unit, and even if there is a fault, it is covered by the guarantee. Disadvantages of Refurbished Equipment (i) Cosmetics As refurbished goods have been previously bought, they can often have scratches or dents. These will not affect the working of the product, but may make it less appealing; particularly if your office is seen by your customers, and you do not wish to have damaged looking equipment about. (ii) Missing Items Some refurbished items are reduced because they do not have all the relevant accessories or documents (E.g.: Instructions, connecting cables, remote control). This is not a problem for many pieces of equipment; but in some cases the product may be unusable without it (or replacing the missing parts may cost more than the discount on the product). Refurbished goods offer equivalent prices to some second hand goods, but for a guaranteed and almost new product. If you are looking to save money without risking faulty goods, or are buying lots of equipment for a new office on a tight budget, then you may find refurbished goods to be exactly what you are looking for. Leasing, Renting or Buying? When you look at purchasing larger items of office equipment or furniture, one of the biggest factors is usually price. If you are buying several items together the costs can run into many thousands of pounds. If this is too much to pay in one go, then leasing or renting equipment could provide a solution: Advantages of Leasing / Renting (i) No Lump Payment If you purchase large office equipment and furniture, you can end up with a huge lump sum bill. By leasing you can pay small monthly payments without losing out on quality equipment. In some cases, you may be able to afford much better equipment by leasing, as you do not have to pay the full price upfront. (ii) Short Term Use If you need a piece of office equipment for a short while, then buying it may be a waste of money. By short-term leasing or renting you can get full use of the equipment for the time you need it, without having to fund the full cost, and without needing to find a buyer afterwards or have the equipment left doing nothing. (iii) Credit It
is easier for a business to get credit for leasing than for other finance
to buy a product. As the leasing company / finance company retains ownership
of the equipment, the need for other security is much l
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As
the goods are not technically new, they are sold at a much lower price
than their new 'pristine' equivalent. This can save you large amounts
of money; refurbished discounts can range from 10% to as much as 40-50%
depending on the condition and age of the product.