Buying equipment: new, used or imported?

Whether it’s a coffee machine, a digger, a CNC router or a refrigerated van, the new-versus-used question comes up for nearly every New Zealand business. There’s no universal right answer — but there is a sensible way to decide. Here’s how a friend who’s helped plenty of owners through it would think about it.

Start with the job, not the machine

Before comparing price tags, answer three questions:

1. How hard will it work? Daily, heavy use favours new or near-new. Occasional use favours used — or hiring.
2. How long will you keep it? A long ownership period spreads the cost of new; a short one favours used.
3. What does downtime cost you? If a breakdown stops the whole business, reliability is worth paying for.

The cheapest machine is the one that earns the most while costing the least to keep running — not necessarily the one with the lowest price.

The case for new

• Reliability and warranty. Fewer surprises, and a manufacturer to call when things go wrong.
• Latest efficiency. Newer machines and vehicles can be cheaper to run.
• Finance-friendly. Lenders are generally comfortable with new assets from reputable suppliers.
• Investment Boost. Since 22 May 2025, businesses can claim 20% of the cost of eligible new assets as an upfront deduction, then depreciate the remaining 80% as usual. There’s no upper limit on the value of the investment.

The case for used

• Lower upfront cost — often significantly.
• Less depreciation in the early years, because the steepest drop has already happened.
• Availability. Sometimes you can have it this week rather than waiting months for a new unit.

But used equipment needs more homework:

• Service history and hours or kilometres.
• An inspection by someone who knows the gear.
• A PPSR search — the Personal Property Securities Register shows whether a lender has a security interest over the item. If there’s one and you buy it anyway, it could be repossessed from you. The register is useful for motor vehicles and for second-hand goods valued over $2,000.
• No Investment Boost if it was sourced within New Zealand.

What about imported equipment?

Importing can open up better choice and pricing, and Investment Boost treats assets that are new to New Zealand as eligible — including some imported second-hand assets held by the seller for sale. But factor in:

• freight, insurance and port costs;
• GST and any duties at the border;
• compliance — electrical standards, vehicle certification and entry requirements;
• parts and servicing support in New Zealand;
• exchange rate movements between order and payment.

A side-by-side comparison

How does the tax change the maths?

Investment Boost doesn’t make new equipment free — it brings forward part of the tax deduction. For a profitable business, that can reduce the tax bill in the year of purchase and improve cash flow. For a business that isn’t paying much tax, the benefit is smaller. Your accountant can run the numbers for your situation in minutes, and it’s worth doing before you decide.

Should I buy, hire or lease?

If you’ll only use something occasionally, hiring can beat owning outright. Leasing or asset-specific finance can suit some businesses too — compare the total cost and conditions against a straightforward business loan, including what happens at the end of the term.

How to fund the purchase

• Unsecured business loan — for businesses trading six months or more, based on turnover and bank statements. Works for private sales too, because the loan isn’t tied to the asset.
• Property-secured loan — from $20,000 up to $1m against NZ property, useful for larger purchases or bundling several items with a fit-out or stock.
• Line of credit — for regular, smaller equipment purchases through the year.

Whatever you choose, make sure the repayments are comfortably covered by what the equipment earns or saves. See our page on buying equipment or a vehicle for more.

Where LendFriend fits

Tell us what you’re buying, new or used, and from whom. We’ll look at your situation and match you with a lender from our panel that suits the purchase — and remind you to do the PPSR search if you haven’t. Every loan is priced on your individual circumstances.