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How to Accurately Value a Used CNC Machine Before Selling or Buying

No matter if you are planning to sell your current CNC machine or buy a used CNC machine, in both cases you need to be properly aware of one thing and that is the valuation of the machine. Neither should you sell it underpriced nor should you buy it overpriced in the respective cases. Accurately valuing the used CNC machine is an important job to do while selling or buying. To rightly value the machine, you need to take a lot of factors into consideration. To know those factors, and the ways you can sell or purchase the machine at the right value, continue reading with us till the end.

Factors that decide the value of a used CNC machine

Here are some of the factors that help you determine the value of your machine at the right value proposition –

Brand name and reputation – Brand name and reputation are the first major factors that help to determine the price of a used CNC machine. If the products you are concerned about are from any high end brand like DMG Mori, Mazak, Haas, and Okuma then the price will still be higher after a few years of usage because they are known for reliability and longevity.
Age and usage of the machine – Once you are aware of the product’s brand value, you should now focus on the age of the machine and the hours it has been used. Like every other machine, CNC machines also lose some capabilities with time, and that plays a huge role in depreciating the machine’s price. Also, higher hours of usage mean more wear and tear, which further decreases the machine’s value.
Generally, a machine faces a depreciation of around 20% in the first year, and then the depreciation rate gets lower over time. But you can still be able to sell your machine at a good price after years if you have used it in the right way and taken proper care of it.
Condition of the machine – The next thing you should check in the machine is the overall condition of the machine. A well cared for machine will be able to bring better bids for you. If as a buyer you see a machine with damaged parts or rust then you should negotiate for a lower price. Here are the things that you need to take into consideration while checking the condition of the machine –
- Check the overall cleanliness of the machine, like rusting, excessive oil, or broken parts.
- Look for wear and tear in the machine parts and the electrical system of the machine.
- Finally, check if the machine is running smoothly and not making any weird noises while operating.
Specifications of the machine – Now the features that your machine and the type of machine play a huge role in determining the price of it. So here are the two things that you should check while deciding the value of the machine –
- Firstly, check the size and capacity of the machine. Also, make sure that you are well aware of the technological features of the machine and if they are modern then you can get a better value.
- Next, the type of the machine is also another factor important to determine the value of the machine. Whether it’s a 3-axis or 5-axis or it’s a vertical spindle machine or a horizontal spindle machine. These features are very important to determine the value of the machine.
Market Demand and Trend – The country you live in, the manufacturing condition of that country, the brand of your machine, or the features all play an important role in deciding the market demand for the machine you’re trying to sell or buy.
Machines with new and advanced features, from top notch brands in a competitive market like the USA or Mexico will definitely have a high market demand, and eventually, the machine will be able to fetch a higher price which is bad news if you are planning to buy one.

Best ways to assess the accurate value of a used CNC machine

Once, you are done checking all the factors mentioned above for the used CNC machines, here are the further steps following which you can decide the right value for the used CNC machine

Step 1 – Research the market value:

The first thing you should do is check what is the average value of an X yrs used CNC machine of a similar model in different platforms and then you’ll be able to decide a price for the machine you are concerned about more accurately.

You can check

Other machine listings.
Recently sold machines of similar model.
Adjust it with the condition of the concerned machine.

Step 2 – Cost of repairs and upgrades:

If the machine has some kind of problem let it be electrical, mechanical, color damage, or technological, all these factors should be taken into consideration while deciding the price of the machine.

If as a buyer you feel like you’ll have to repair, change or upgrade any particular part of the machine then you must talk about that while negotiating and decrease the price as per the cost you will have to bear while finally doing the repair and upgrading.

Step 3 – Check the maintenance records (or supply them):

If you are buying a used CNC machine then ask for the maintenance record of the machine from the seller. Also, if you are a seller then it is your responsibility to give those records to the buyer for a more transparent deal.

You should gather different documents about the machine like –

Regular servicing invoices of the machine.
Any modifications that have been done to the machine.
Any repairing or part changes that have been done to the machine.

Step 4 – Consider the remaining useful life of the machine:

So it is an underrated factor many people just miss while buying especially. One should definitely think about the remaining life period of the machine to determine the price. Here brands also play an important role because the high end brands are meant to have better longevity over the normal ones.

Step 5 – Consult an expert:

If you are feeling overwhelmed after reading all the factors and steps to finally get an accurate value of a used CNC machine, then we would say that you should get consultation from an expert. Especially if you are using a third party platform like Machine Station to sell or buy a used CNC machine then you will get access to their in-house experts who will help you to get the right value for the machine.

Conclusion:

In our final words, we would say defining an accurate value of your used CNC machine is not rocket science but an easy job if everything is kept in mind. If you are a seller then being transparent about the history of the machine can give you a price edge over others, and as a buyer, you should just be fully aware of what you’re buying in detail.