Refurbished ATMs are a great way to expand, upgrade, or add value to any financial institution’s fleet. They’re also surprisingly affordable—at least compared to the cost of a new ATM.
For banks and credit unions that want to explore branchless capabilities, a comprehensive ATM network is a must. However, building up and maintaining that fleet can be an expensive proposition. That’s why ATM refurbishment is such a great option.
But what kind of savings can you expect from a refurbished ATM? Which factors contribute to the final price? And are refurbished models viable ATM upgrades?
The Value of Refurbished ATMs
On average, a new ATM will cost around $30,000, not including any additional factors such as shipping and installation. Refurbished models cost far less, depending on several factors (listed in the section below). But their value goes beyond up-front cost savings.
The cost of basic, cash-dispensing models is often up to 30% off their original sticker price.
Advanced, high-function ATMs can sometimes reach 60–70% off!
Most companies already use refurbished ATM parts—even major financial institutions. The reason for that is because refurbished parts are every bit as good as new. Their integrity and reliability are easily on par with anything else on the market.
The same is true for refurbished ATMs. Their lifespan and reliability depend on how they’re managed, maintained, repaired, and upgraded—just like with new ATMs. Each machine gets the same treatment and are refurbished and upgraded to specific standards. Generally, their lifespans fit average depreciation models when properly managed.
(Read more about the lifespan and reliability of refurbished models.)
Moreover, refurbished models offer a much faster speed to market. Most new ATMs take 90–120 days to reach market. Refurbished ones can be ready in just two weeks. So, if time-to-deployment is an important consideration for your bank or credit union, refurbished models warrant a closer look.
What Factors Affect Refurbished ATM Costs?
As with any new model, refurbished ATM machines carry a broad range of price tags. Many factors contribute to the cost (or savings) that your institution can expect. Here are a few of the biggest considerations:
1. Model type and features are the most important factors affecting the total cost of a refurbished ATM machine. For example, a simple cash-dispensing model will be much cheaper than an advanced, high-function machine.
2. The quantity of ATMs purchased also affects the final price tag. If you buy ATMs in bulk, you might see a decreased price per machine, further increasing the value of your fleet.
3. Packaging logistics, shipping, or installation with ATM purchase may provide additional cost savings. It will also simplify the transaction so that your bank or credit union isn’t dealing with multiple vendors.
4. In some cases, the age of the machine may affect cost, although the model type and features are more important considerations. Refurbished ATMs range from 1–2 years old at the low end, but some older models may be 7–8 years old—with plenty of life and advanced function to spare!
All of these factors will affect the final cost, but that number ultimately depends on your institution’s needs and preferences.
Additional Benefits of Going Refurbished
Entering into the refurbished economy is a particularly smart long-term investment. Not only does it provide many up-front cost savings—it also confers numerous other benefits.
For instance, refurbishment is a green choice with high sustainability and low environmental impact. It allows financial institutions to reduce, reuse, and recycle. Tellerex offers assistance with remarketing, sanitizing, parting out, and recycling ATMs. This ensures that banks and credit unions can get value out of their older models when it comes time for ATM upgrades and disposal.
Furthermore, Tellerex offers warranties and upgrade options (e.g. PC, EPP, contactless capabilities, etc.). These options further extend the life and increase the value of any fleet.
Additional Reading and Resources
Tellerex is committed to leveraging our knowledge and experience to reduce ATM expenses, increase reliability, and accelerate a contribution to your company’s bottom line. To date, we’ve helped save clients over $5M in ATM-related expenses and operation cost reductions.
Tellerex can help your financial institution transition with several ATM-related issues. First, we can provide high-quality refurbished models in a matter of weeks. Second, we can simplify supply chain logistics to maximize speed and reduce cost. Finally, we can help you with fleet and ATM upgrades through our ATM lifecycle management solutions. Please contact us to learn more.