Procurement managers often face the choice between buying a used packaging machine at a lower upfront cost and investing in a new machine. The lower initial investment may make a used machine attractive, but the purchase price is only one part of the total cost of ownership for a machine that is expected to run on your line for many years. A reliable comparison should include the full cost of ownership and the risks associated with each option, rather than simply comparing two price quotes.
What does a new or used machine include?
A packaging machine is a long-term operating asset that requires product adaptation, commissioning, staff training, spare parts, and service over the coming years. When you buy a new machine from the manufacturer, these elements are usually part of the purchase: engineering adaptation to the specific product, warranty, full technical documentation, and a service contact with detailed knowledge of the machine in case of a breakdown. When buying a used packaging machine, some or all of these elements may not be available. These differences should be taken into account when comparing the total cost of both options.
Integration with the line is another cost to consider. A machine that was not designed for your line may require conveyor adjustments, conveyor-to-conveyor connections at different heights, and integration with the existing control system. For a new machine, these requirements are defined during the characterization stage and included in the design. With a used machine, they may only become apparent on site after the machine has been delivered. Additional adaptation work can also extend the time until the line is ready for production. Therefore, both alternatives should be compared all the way to line start-up, not just to the point of machine delivery to the plant.
What to check before buying a used packaging machine
- Who is the original manufacturer, and do they still provide parts and support for this model?
- For which product was the machine originally adapted, and how much does it differ from your product in terms of dimensions, weight, and sensitivity?
- Is there complete technical documentation available, including drawings, electrical schematics, and editable control software?
- How many operating hours has the machine accumulated, and which components have been replaced during its service life?
- Who will carry out the installation, conversion, and commissioning, and who is responsible if a fault is discovered after startup?
If some of these questions cannot be answered definitively, the lower purchase price may not reflect the machine’s full cost. A machine adapted for another product may require engineering conversion, the cost of which is not known in advance, while line downtime caused by the unavailability of a spare part may cost more each day than the savings achieved on the purchase price.
The warranty terms should also be examined carefully. What is covered by the warranty, and what is not? Does it include labor, or only parts? What is the required response time? Does it remain valid after conversion or modification of the machine? For a new machine, these terms are set with the manufacturer and can be negotiated before purchase. For a used machine, even if some form of warranty is offered, its scope is usually narrower, so the warranty terms should be read carefully before comparing prices.
Total cost of ownership: what to include in the comparison
| Cost component | New machine from the manufacturer | Used machine |
| Purchase price | Higher | Lower |
| Compatibility with your product | Included in the design and tested during commissioning | Buyer’s responsibility, to an unknown extent |
| Warranty and support | Included, provided directly by the manufacturer | Limited or nonexistent |
| Spare parts availability | From the manufacturer, throughout the model’s entire life cycle | Depends on the machine’s age and the availability of the original manufacturer |
| Documentation and control software | Complete and up to date | Sometimes partial |
| Risk of unplanned downtime | Support through the service system | The buyer bears responsibility |
The table shows why purchase price alone does not provide a complete comparative picture. A reliable comparison consists of comparing the total cost of ownership of both alternatives over the entire operating life of the machine. The more central the machine is in the line, the more costly downtime can be and the greater the importance of service, spare parts, and warranty in the decision.
When can a new machine provide a cost advantage?
A new machine may be worth considering when the product requires specific adaptations, when the machine is critical to production, or when integration with an existing or future line is necessary.
The first situation occurs when the product has unique properties, such as viscosity, brittleness, or being frozen, and requires adaptation of the feeding and gripping systems. The second occurs when the machine is a bottleneck in the line and any downtime stops the entire production process. The third occurs when integration with an existing or future line is required and the machine must communicate with additional control and transport systems. In all three cases, the ability to design the machine for a specific requirement may be more valuable than saving on the purchase price.
Another argument for buying from a local manufacturer is access to local service. IMPAC Engineering has been designing and manufacturing industrial equipment in Israel since 1974, and its service team can come directly to the customer’s production floor, without depending on the availability of a technician from abroad. In machines such as the MKH-4 cartoner, where every axis is servo-driven and the feeding system can be disconnected in one second, this design additionally simplifies routine maintenance for local production staff.
How to compare a used machine and a new one
To make the comparison more objective, a consistent set of requirements should be applied to both options. First, define in writing the line requirements: the product, the range of formats, the target output per shift, and the expected number of changeovers per week. This provides the same basis for evaluating both options and prevents comparing offers that do not refer to the same requirements.
Second, ask both sides to provide written answers to the same questions: What does product adaptation include? What are the warranty terms? What is the availability of parts and service? What is the full schedule up to line startup?
Third, assess the potential cost of downtime. Multiply the cost of one hour of line downtime by the estimated downtime resulting from each supplier’s response time, and include the resulting value in the total cost of ownership for each alternative. This makes it possible to focus the comparison on the costs that have the greatest impact on the overall assessment, rather than solely on the purchase price quoted in the offer.
Summary
Used packaging machines may be suitable in some situations, however the decision should be based on the total cost of ownership, including product fit, warranty, spare parts, service, and the risk of downtime. In the case of product fit, warranty, spare parts, and service, a new machine purchased from an active manufacturer typically offers clearly defined terms, whereas with a used machine these factors may require more thorough verification.
Before making a purchase decision, contact IMPAC to discuss your requirements and receive a quote for a new machine tailored to your product, and then compare both alternatives based on complete data.
