At the other end of the spectrum, countless intermediaries exist, and amazing "bargains" can be found on eBay. Many purchasing managers will have received emails with a link to a "bargain you can't miss," urging them not to let it slip away before someone else snaps it up.

How do you decide which of these genuine opportunities is worth taking advantage of to acquire a valuable instrument at an attractive price, and which is best avoided? Just like when buying a used car, there are ten factors that help separate a bargain from something worthless.

1. It seems obvious, but will the equipment offered meet all the requirements? The instrument's specification must cover the need. Small differences in options or software could make a huge difference in its functionality. The most reliable resellers will offer support to application engineers. If it fully meets the specification, that's a good starting point, but if it falls short and can/needs to be upgraded, then you may have to spend much more than the initial purchase cost or even end up with something useless.
2. What's included in the purchase? Do you know which cables and accessories you need and will be supplied? Carrying cases, manuals, and sometimes even power cables may be labeled as "extras." If the equipment uses consumables or parts that need to be replaced periodically (e.g., batteries), are any of these supplies included? Does the price include shipping costs, taxes, and import duties? Who pays for transit insurance?
3. Quality checks and calibration. A reputable supplier will implement a rigorous testing process to ensure the equipment you purchase is in excellent condition. In most cases, calibration will also be necessary. This is the best way to ensure it functions according to the manufacturer's specifications. Quality will be reflected in the price, but the old adage "you get what you pay for" is probably true in this case.
4. What warranty and support does the supplier offer? Many suppliers guarantee that their certified pre-owned instruments are suitable. If something goes wrong or you are not satisfied, you have the right to a refund. Before signing the bargain order, check the warranty details and, if possible, verify that it is indeed what it appears to be. Some suppliers offer ongoing technical support, which is especially valuable if you are not familiar with the equipment.
5. Can you trust the supplier? Will the supplier simply complete the sale and then disappear? The pre-owned market is volatile, and suppliers come and go. If the supplier requires prepayment, you need to have complete confidence that they will fulfill their part of the agreement and deliver the equipment. If any problems arise after delivery—for example, if the products arrive damaged or incomplete, or if it's the wrong equipment—how can you trust them to resolve the issue? A one-year warranty might be reassuring, but it's useless if the supplier goes out of business or disappears a month after the sale.
6. Does the equipment exist? This question might seem far-fetched, but has the supplier actually sold you something they have in stock? The recession has hit used equipment sellers hard, and they are increasingly less likely to hold stock in the hope of securing an order, as they lack the capital to maintain a large inventory. They often sell something they plan to buy back at a lower price than they're offering you. Ask if the product is in stock and check its history. A product that was previously used for demonstrations or has been rented out is likely to offer better performance and has been well-maintained. If the equipment is "smoke and mirrors," it's advisable to look for alternatives.
7. Is it upgradeable? If you anticipate your needs will change over time, check if the equipment is upgradeable. If not, it might be worth spending a little more on more future-proof equipment.
8. Does the supplier accept used equipment as part of the payment? There's probably not a single company that doesn't have some test equipment they no longer use. Many test equipment resellers also buy it. Can you leverage assets sitting in a closet as part of the payment and thus reduce the purchase cost? You might even end up with credit. If the supplier accepts products as part of the payment, they might also accept the equipment you're buying now in the future. This can be an important factor to consider.
9. Are you buying used equipment because you're short on cash? Some companies offer financing solutions, such as installment plans or leasing used equipment, so check what other options are available if financing is a key consideration.
10. Look for alternatives to ownership. Before you buy, explore the alternatives. Test equipment is becoming increasingly sophisticated. This means it's generally more expensive and, at the same time, becomes obsolete more quickly. Add to that the fact that companies are increasingly trying to remove as many assets as possible from their balance sheets, and alternatives to ownership are becoming quite attractive. Depending on the period for which the equipment will be used, leasing or operating leases should be investigated before deciding on the best option.

Instruments obtained through a recognized manufacturer's program or from an accredited source, such as Microlease's certified pre-owned equipment channel, can offer a significant cost-saving alternative to purchasing a new instrument. Purchasing managers can and should explore these savings during the ordering process. However, risks are associated with purchasing instruments unless both the equipment and its provenance have been thoroughly verified.

Author: George Acris, Microlease