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Financing Pre-Owned IT Hardware

By Stacie LeGrow and Raymond W. Dusch

The robust trade of pre-owned computer, networking, telecommunications and other IT hardware on the secondary market is a reality. As price-conscious customers look for opportunities to improve their bottom lines without sacrificing quality, pre-owned name-brand IT hardware (typically offered at 65% to 85% discounts below new manufacturers' list prices) becomes an increasingly enticing proposition.

The trade in pre-owned IT hardware represents a tremendous opportunity not only for customers, but also for original equipment manufacturers and secondary market brokers, as well as lessors and other sources of equipment financing. To illustrate this point, a recent International Data Corporation (IDC) study valued the secondary market for just one well-known IT manufacturer's hardware, much of which still has a relatively long useful economic life, at over $3 billion.

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