Should You Trade In or Keep Your Machinery?
The decision to trade in existing machinery is rarely straightforward. A newer machine promises lower repair bills and better reliability, but carries higher finance costs and depreciation. This calculator puts the full picture side by side so you can make the call with confidence.
How the calculator works
For your current machine, it spreads the original purchase cost, any finance already serviced, and annual maintenance over the working lifespan to give a true annual cost. For the new machine, it calculates monthly repayments using standard amortisation, then spreads the total interest charge over the new machine's working life — not just the loan term — giving a fair like-for-like comparison.
Frequently Asked Questions
- What should I enter for "total debt/interest paid"?
- Enter the total interest charge from your original finance agreement — the difference between what you borrowed and the total amount repaid.
- Should the deposit include my trade-in value?
- Yes. If you're putting £18,000 trade-in and £7,000 cash as a deposit, enter £25,000 as the deposit.
- Why does the new machine show a lower annual cost than expected?
- The interest is spread over the full working lifespan, not just the loan period. A machine you run for 10 years carries a lower annual finance burden than one you trade in after 5.
- What if the new machine has lower repair costs?
- Enter realistic lower service costs for the new machine. This is often the strongest argument for changing — modern machines can halve maintenance spend in early years.