Cost
calculations normally
are made for new machines, because the investment is very high and needs
precise planning for pay-back.
Written-off
machines are old machines that are working longer than it was planned.
Consequently, some cost elements, that are important at new machines, go here for
zero. The depreciation and interest costs, for example, can very low or zero, but
the costs for repair and maintenance are increasing.
Experiences
show that the repair and maintenance costs (R&M) are not unlimited.
Very often there is a period, when R&M costs remain stable or even decrease
for a few years, before they increase again. This is because the owner decides
to stop investing in the machine and only use it for as long as it makes sense
to do so.This machine can be a risk for him, but as long as it works it is cheap.
For a
company that is working professionally under a high market pressure, the risk
to interrupt the work due to an old machine breaking down is too high. This
company tends to work with new machines only for a short period that may match
the depreciation period.Then it will sell the machine on the
second-hand market.
The company
that buys this machine pays a low price. Depreciation and interest are low.
While the costs for fuel and lubricants may be more or less the same, and also
the drivers have comparable costs. But the costs for repairs and maintenance
can be doubled until the total cost is equal to that of a new machine.
This is the
reason, why machines often find a second life in smaller companies with lower
work performance, where the owners repair their machines themselves.
