December 15, 2021
Last week, we wrote about some of the main differences between new and refurbished ATMs. We compared functionality, lifespan, and value. In so many ways, the main difference between a new and a refurbished ATM is the price.
And that’s what we’re talking about today. Except for this time, we’re focusing solely on price. After all, price is the key differentiator between refurbished and new ATMs. And we’re going to get more illustrative, too.
The Value Proposition of Refurbished ATMs
The primary line of thought goes something like this:
New ATMs can access the latest hardware, software, features, and functions. Some of those things may not have hit the refurbished market yet. Consequently, new ATMs might be more Windows 10-ready, more likely to support cash recycling, and even sport a video terminal.
They’ll also be more expensive. Far more expensive. And they won’t hold their value well at all.
Once you unbox and install an ATM, you might see its value depreciate by 75% within the first year alone.
As you can imagine, ATM technology is not among the fastest-moving technology. A two-year-old top-of-the-line ATM will be nearly as capable as a current one. But it will cost far, far less. And, so long as the refurbishment is done responsibly, it will continue working just as well as a new ATM.
So, isn't it worth considering if you can buy an ATM that works just as well as a new one yet spend a fraction of the sticker cost?
Refurbished ATMs in Car Terms
Those of us in older generations are familiar with the new vs. used car debate. A new car might boast a few more horsepowers or achieve an extra mile or two per gallon. It will undoubtedly come with a manufacturer’s warranty and the knowledge that you’re the first owner.
And for that luxury, it will command a hefty price tag. The second you drive it off the lot, it will begin rapid depreciation. Cars are a necessity for most of us, but they’re a terrible investment.
Many people prefer to buy pre-owned cars. Even when a car is only a couple of years old, its price is significantly lower than it once was. Nevertheless, it works as well as new and will last for decades if properly maintained. Plus, good private sellers and dealers will ensure that all parts are in good working order before selling.
Refurbished ATMs, like certified pre-owned cars, will be essentially like new. The main difference? The lower total cost of ownership (TCO) and sticker shock.
Refurbished ATMs in Smartphone Terms
For younger generations, buying new or certified pre-owned cars might still be a few years later. Still, some products cost far less when refurbished than when they’re new. For example, smartphones fit that bill.
Refurbished smartphones are cleaned, wiped, and formatted like new. Often, the batteries get replaced, breathing years of new life into the phone. One- and two-year-old refurbished phones will cost a few hundred dollars. Not only that, but refurbished phones are less likely to lock buyers into contracts.
With new flagship models now firmly north of the $1,000 mark, refurbished phones make sense for anyone without an excess of cash. (Or with an excess of good sense.)
Refurbished ATMs, like refurbished phones, will be essentially like new. The main difference? Lower TCO and sticker shock. Yes, it’s that predictable.
Unfortunately, buying refurbished items isn’t very fancy. You might not impress people with all the latest bells and whistles. But then, most people won’t even notice—they want something convenient that works.
The main difference between a new and a refurbished ATM is the price. There’s no other way to say it.
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