[ockert]

Our bussiness bought a new PCNC 770 a year ago to do some work but we now realised that it is not going to be economical to use it. I now have the option to buy it from them. My question is how much I must drop my offer from the original cost since it is secondhand. I have been using it myself since we bought it and therefore know it's condition.

Any suggestions would be appreciated.

Thanks
Ockert

[GLCarlson]

Tormachs generally seem to hold value pretty well, and sell for 66-80% (or sometimes higher) of the new/recent purchase price. This is in contrast to most second-hand/used machinery, which runs lower to much lower depending on age & condition- despite what you see on Craigslist or e-bay, both of which tend toward fantasy valuations at least initially.

So, option A: offer around 2/3 of cost, and dicker up a bit if you must. Get all the accessories as a part of the package, if you can.

But, a second option. Typically, these are not very expensive machines (from a company perspective). It may have been expensed rather than capitalized (ie, a 1279 cost write-off). Or, if it was capitalized, it may have been on an accelerated depreciation schedule. In either case, it may well be on the books for a lot less than its actual resale value, and the company (especially if it's not a small one) may be very happy to dump it for what they have as residual value. This happens surprisingly often, and if you are willing to take it for what the company names as its price, I don't see a problem- nor do I feel obligated to educate some MBA in the front office. Somewhat different situation if it's a small company.

Before you make an offer, find out what the accountants- NOT the shop guys- think it's worth. I'd ask the company beancounter what it's on the books for. If that's reasonable, pay that. If it's stupidly low, same answer.