Finance on quality used machines like this BOY 80M has advantages over finance on new machinery, says STV
Supplier of pre-owned injection moulding machinery, STVconnect, says that the company’s continued growth is an indication that more business owners are realising the benefits of purchasing refurbished machinery.
The Wellingborough-based company says high quality refurbished machinery can meet the productivity needs of a company with greatly reduced costs and minimal risk, as well as increasingly being affordable to finance.
STVconnect, in co-operation with Close Brothers Asset Finance, says it is now offering flexible finance options on quality refurbished machines for customers, many of whom it says have been unaware of the benefits of financing a used machine over a new one.
“The perception in the marketplace is that finance on used machines may be expensive, but actually, the reverse is true,” Richard Perry of STVconnect explained. “Refurbished machines older than 12 years have already experienced most of their depreciation, so for the finance company the risk of loss due to default in the first couple of years is much lower than for a new machine which can depreciate by as much as 30 percent in the first couple of years - and lower risk to the finance company equates to lower cost for customers.”
As an example, STV says a used machine valued at £15,000 can be obtained for as little as £1,500.00 deposit plus VAT, followed by 60 monthly payments of just £308.00. The total cost would be £19,980.00 which equates to a flat annual rate of just 7.38 percent.
“What could you get for £15,000? A fully refurbished and guaranteed Battenfeld BA1000/315 CDK or a Boy 80M with Procan control are just a couple of examples,” continued Perry.
“STVconnect has an excellent reputation for providing quality refurbished machines and therefore if the buyer decided to settle the finance early, say, after two years, and sell the refurbished machine on, the resale value will remain relatively high and consequently there is a much better chance of clearing any outstanding finance from the sale proceeds compared to the same circumstances when financing new equipment,” he added.
At roughly 25-30 percent the capital cost of new machines, STV says buying refurbished machines opens opportunities for increased productivity at relatively low cost. Finance subject to normal credit checks is not an obstacle and, if a trusted specialist has carried out the refurbishment, then the machine should be trouble free for many years to come.
“Professionally refurbished pre-owned machinery makes excellent business sense in this day and age - and low-cost finance is making it more available to the marketplace. It’s a win/win situation.”