Rent or Buy Used?

[Cropper]

New to the Forum and new to Heavy Equipment. I've been renting a Cat 315 to put in a road on a plot of land I recently purchased, and am weighing the advantages of owning a 312/315 over continuing to renting one for my project. I estimate after the road is cut, rock removed, septic dug, trees pulled and land cleared I will have had to pay $15,000 in rental costs for a Cat 315.

Now the debate. Should I put the $15,000 down on a Used Cat 312/315 finance the remaining balance over 5 years and sale it when I'm done using it. That is if I can stand to see it go, never though pushing down trees and digging 2 ton rocks up could be so much fun.

Only true concern I have is I'm no professional operator and know next to nothing about maintaining an excavator or the costs involved. I've pulled engines, dropped a couple of tranys but never dreamed of having to tackle something like this if I get a lemon.

The financial numbers add up but I cant make a solid judgment on becoming a owner knowing very little on upkeep, care, maintenance, and common expense and problems. Little Help Please...

 

[kneelo]

I was/am in a similar position and decided to buy. For me it is a lot more convenient to own as work on the farm when my real job permits so would have ended up being killed either by mobe/demobe costs or standby hire. I ended up getting a Hitachi EX270.

I also figure I could probably get some work for it locally when i'm done (if that ever happens) and if not I can just sell it. I am comfortable I can handle the maintenance myself but as parts are quite expensive I know any big repair is going to end up costing... I can live with the risk because it is just so useful.

 

[Asphalt/Dirtman]

I guess a good question to ask is how big is your property? Just curious

There are a couple questions you have to ask yourself. I think these will help yourself access whether you should do it or not. We can help, but in the end, it is your money and time.

How much are you going to use the excavator on this project?
How much are you going to use it after this project?
Can you find a good machine in good mechanical condition?
Can you sell it and recoup money back? for say a profit?

 

[JBGASH]

What is the total cost of the excavator, age and how many hours are on the machine? My experience is when you decide to buy a piece of equipment is to find a lowered hour machine in good condition, hopefully to minimize future repairs.

 

[overworked]

Always deal with a reputable seller, most will rent and apply 80% to purchase. One month seat time is will show most concerns, if it don't feel right then send it back. U did a month work and know what u r bying. Auction machines are great for us mechanics, usually expensive if you are a hobby owner and have a little experiance fixing equipment. Been in buisness fixing equipment for years and have seen to many people upside down in five gallon overhauled equipment, spend all money on machines instead of project.

 

[Cropper]

How much are you going to use the excavator on this project?
Property is only 16 acres but need to cut a 1/3 mile road to the top of a very steep hill. Plan on using it to clear about 2 acres. Additionally I need it to dig a foundation, utility ditches, and septic tank, my estimates I will take a little under 400 hours.

How much are you going to use it after this project?
Intended to used it to help in a barn construction as well as eventually dig a pond, create terraces on the cleared acres. Though about a second job as an operator doing odd excavating jobs as my current work affords me 14 days off a month.

Can you find a good machine in good mechanical condition? I hope I can, my budget is around $35,000 can always get the local cat mechanic to do a pre buy inspection to weed out the bad ones.

Can you sell it and recoup money back? Figure when done I could put it up for sale or place it in an auction.

As stated before I have a budget of $35000 and wont be buying anything that has over 6000 hours on it. Of course I would like to buy the newest equipment I can find but doing a quick search I'm looking at 2001 models and older for this kind of money.
Found a 1993 312 with 5300 for 26500.

 

[dirtdeviltx]

I have owned, operated and maintained equipment for 20 years now and have ran into many problems with buying v renting. The general rule to follow is what will the total rental cost when finished v purchase, maintain, move and loss of equity at sale. I find that when I am making money with the machine, it doesn't hurt me to rent simply because I will be getting a new machine and will not have to pay the full price for a new machine at the end of the job. Making payment for 5-6 years with no money coming in for the payment nearly broke me once. T he other side is that if I need the machine for personal use (with no income from use of machine), then you factor the cost v rent and see what is less again. The common mistake is to forget the extra expenses. Will you be moving the machine and what will that cost. Will you have to by a trailer or will you hire the haul. If a major component breaks, what will it cost to repair....questions like that. I will admit, it is not an easy decision, but if you think of all the angles, you should make a clear decision on what is best for your needs. Hope that helps. I will let you know, I blew $60k in payment for 2 machines I should have rented for a major job that I really should have rented for. I would have been better off renting. Hind site is 20/20. Got caught up in the excitement of owning these two big machines and let it get to my mind and didn't really think of the long haul. Oops.

 

[Asphalt/Dirtman]

"I will admit, it is not an easy decision, but if you think of all the angles, you should make a clear decision on what is best for your needs." Dirtdeviltx

^^ exactly.