Used Equipment Purchasing Guideline
The purchase of used equipment can provide significant cost savings and is encouraged whenever practical. Used equipment is defined as being pre-owned where title has passed from the vendor or manufacturer. It does not include demonstration or factory rebuilt items being marketed by a distribution representative. Several elements need to be considered when approaching a decision of whether or not to buy used equipment.
- What is the condition of the item? Is it fully operational or are repairs required? If repairs or modification will be necessary, how much will that cost? Whenever possible, a university representative should view and test the item to make a first hand determination of its condition.
- Is a warranty being offered?
- Is transportation to the university included in the asking price or is that extra?
- What is the value of the item? Most used equipment has a value range and the price being asked should fall within this range. The value range will depend upon many factors related to condition, location, supply and demand. The value range can often be determined by researching recent prices paid for a similar item, reference manuals, or the use of a third-party appraiser. If none of these methods is feasible, a valuation estimate can be constructed by taking the price for the item when new, estimating its useful life and depreciating the purchase price for the percentage of useful life remaining.
If the above considerations can be answered to the satisfaction of the Department, prepare memo documentation substantiating these points. Purchase the item with a HokieMart Requisition if under $2,000. If the item is valued over $2,000, HokieMart workflow will carry the Requisition to Purchasing. Scan and attach to the Requisition all substantiating information and vaue assesment. If assistance is needed, contact a buyer within the Purchasing Department.
Last Updated:June 28, 2007