Purchasing managers often face a choice between buying a used packaging machine at a lower initial cost and investing in a new machine. The lower initial investment can make a used machine attractive, but the purchase price is only one part of the machine’s total cost of ownership when it is expected to operate on your line for many years. A meaningful comparison should include the full cost of ownership and the risks associated with each option, rather than simply comparing two price quotes.
What Is Included With a New or Used Machine?
A packaging machine is a long-term operational asset that requires product adaptation, commissioning, staff training, spare parts, and service over the years. When you buy a new machine from a manufacturer, these resources are normally part of the purchase: engineering adaptation to the specific product, warranty, full technical documentation, and a service contact with detailed knowledge of the machine when something goes wrong. When you buy a second-hand packaging machine, some or all of these elements may be missing. These differences should be included when comparing the total cost of the two options.
Line integration is another cost to consider. A machine that is not designed for your line may require conveyor adjustments, connections between conveyors at different heights, and integration with the existing control system. With a new machine, these requirements are defined during the characterization phase and included in the project. With a used machine, they may only become apparent on site, after the machine has already arrived. The additional adjustment work can also extend the time before the line is ready for production. Therefore, the two alternatives should be compared until the line is operational, not simply until the machine is delivered to the factory.
What to Check Before Buying a Used Packaging Machine
- Who is the original manufacturer, and does it still provide parts and support for this model?
- What product was the machine originally adapted for, and how different is it from your product in terms of dimensions, weight, and sensitivity?
- Is there complete technical documentation, including drawings, electrical plans, and control software with editing access?
- How many operating hours has the machine accumulated, and what components have been replaced during its service life?
- Who will perform the installation, conversion, and commissioning, and who is responsible if a fault is discovered after commissioning?
If some of these questions cannot be answered clearly, the lower purchase price may not reflect the full cost of the machine. A machine adapted for another product may require engineering conversion whose cost is unknown in advance, while line downtime caused by an unavailable spare part can cost more each day than the savings on the purchase price.
The warranty terms should also be reviewed carefully. What is covered and what is not? Does it include labor or only parts? What is the required response time? Does it remain valid after a conversion or modification to the machine? With a new machine, these terms are defined with the manufacturer and can be negotiated before purchase. With a used machine, even when some form of warranty is offered, its scope is usually narrower, so it is important to read the warranty terms carefully before comparing prices.
Total Cost of Ownership: What to Include in the Comparison
| Cost component | New machine from manufacturer | Used machine |
| Purchase price | Higher | Lower |
| Compatibility with your product | Included in the project and tested during the run | Buyer’s responsibility, to an unknown extent |
| Warranty and support | Included, provided directly by the manufacturer | Limited or non-existent |
| Spare parts availability | From the manufacturer, throughout the life of the model | Depends on the age of the model and the availability of the original manufacturer |
| Documentation and control software | Complete and up to date | Sometimes partial |
| Risk of unplanned downtime | Backed by a service system | Buyer is responsible |
The table shows why purchase price alone does not provide a complete comparison. The fair comparison is between the total cost of ownership of the two alternatives over the machine’s service life. The more central the machine is to the line, the more expensive downtime can be, and the greater the importance of service, spare parts, and warranty in the decision.
When Can a New Machine Offer 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 required.
The first situation is when your product has unique characteristics, such as being viscous, fragile, or frozen, and requires adaptation of the feeding and gripping systems. The second is when the machine is a bottleneck in the line and any downtime stops the entire production process. The third is when integration with an existing or future line is required and the machine must communicate with additional control and conveying systems. In all three situations, the ability to design the machine around the specific requirement can be worth more than the savings on the purchase price.
Another consideration when 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 to the customer’s production floor without having to depend on the availability of a technician from abroad. On machines such as the MKH-4 cartoner, where each axis is servo-driven and the feed system can be separated in one second, this design also simplifies routine maintenance for local production staff.
How to Compare a Used and New Machine
To make the comparison more objective, use a consistent set of requirements for both options. First, define the line requirements in writing: the product, the range of formats, the target rate per shift, and the expected number of changes per week. This gives you the same basis for evaluating both options and prevents comparisons between proposals that do not address the same requirements.
Second, ask each party to provide written answers to the same questions: What is included in the product fit? What are the warranty terms? What is the availability of parts and service? What is the full timeline until the line is operational?
Third, assess the potential cost of downtime. Multiply the cost of one hour of line downtime by the estimated downtime based on each supplier’s response time, and include the resulting figure in the cost of ownership for each alternative. This allows the comparison to focus on the costs that have the greatest effect on the overall comparison, rather than only on the purchase price shown in the proposal.
Summary
Used packaging machines can be suitable for certain situations, but the decision should be based on the full cost of ownership, including product fit, warranty, spare parts, service, and the risk of downtime. For product fit, warranty, spare parts, and service, a new machine purchased from an active manufacturer generally offers clearly defined terms, while these factors may require more verification with a used machine.
Before making a purchase decision, contact IMPAC to discuss your requirements and receive a proposal for a new machine adapted to your product, then compare the two alternatives based on complete data.
