I always find these conversations interesting. I don't know that there is a universal right answer for everyone. A SSL/CTL for nonproduction type work, making endless payments on a machine that holds that kind of role is hard to understand. So running them longer would seem be a better value. The same machine that is instrumental in the success of a business it can make more sense to rotate earlier, even if that includes payments at least to me. It is not just an hourly or mechanical breakdown issue for me to replace, but also what additional productivity (if any) a new machine can bring. Money has been cheap for a long time, and that allows for options that are not available when interests rates are high. There is a long list of effects that drive buying decisions and they vary in importance for everyone. Nige are you putting 6-8K hours on a SSL/CTL a year?
Boy some great comments! I do commercial snow plowing during the winter months, however thank god two out of our three lots were contract, crappy winter here in the northeast ( I'm located 38 miles north of Boston), with that said, we had a 2011 John Deere 244J compact wheel loader, travel speed 18.9 mph, we rode to various lots most within 2-4 miles from our shop, did not have a skid steer coupler, NO RIDE CONTROL!
We bought it used, 2014 for $48,000, had about 2,100 hours when we bought it, sold it to a friend who has a landscape company wanted it for yard and snow removal, our shop is heated and always was garage and cleaned. February 2019 I sold it to him with 2,440 hours give or take, again sits all spring-Fall , just used in the winter months, sold it for $45,000, I found a CAT 908M, pretty well loaded, Travel speed 22 MPH option , 1,200 hours, CAT just did oil change/filters, diffs, wheels etc,(owner was OCD) , he wanted $70,000 for the machine, I offered $64,500 he accepted. So I took the $45,000 from the Deere I sold,(I owed nothing on machine), And put in another $19,500 cash, I am 57 now,
and finally I don't have any payments, etc., yes, a lot of my stuff is old(er) but very good shape etc.
Now the CAT 908M again will be used for just snow, we have a Metal pless wing plow, few more HP and weight then the 244J, I was told this machine today with all the options is over $108,000 ! for a baby CAT! Holy Crap......but when I see
zero percent financing its a tough one, yes a small machine , for us a good size based on our lots, but down the road for service, who knows, but we own it out right, maybe I paid too much for the 908M, but I checked online, seemed to be in check, But I will say you "Pros" bring up valid points , this is a great site.
I also want to thank everyone that is always offering to help us novices!
