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Doug Kanter wrote:
Tank gives much smoother air flow and a reservior for jobs requiring blasts of air. The tankless type have very pulsy air flow and it doesn't have much blasting power at all. The difference in peak flow is like hosing something down with a hose vs dumping water with a bucket you've previously "filled up" with the same hose.
The $40 unit is also going to have a light duty vacuum cleaner type motor. $200 unit is heavier, made of metal and comes with a heavy duty AC motor.