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Bobcat 435 ZHS 2005 - how much is it worth???

Discussion in 'Heavy Equipment & Pavement' started by waltero, Mar 3, 2006.

  1. waltero

    waltero LawnSite Member
    Messages: 206

    I am looking at a bobcat 435 that has 250 hrs on it for 43,500.00. It is a local used car sales place that has some equipment and trailers on the side that he sells. The excavator looks to be in good shape but the light on the boom is bent and the shield that covers the large hydraulic cylinder on the dipper was taken off with force as the bracket that held it on is now bent. Besides these flaws, the machine is in excelent shape and is full of options. It has the cab/heat/ac/fast track and hydraulic thumb. I am not sure if it is the long arm version or not but either one will work for me. I went to the bobcat dealer today and got a price for a new one and to check on the financing. I got a price for the 435,cab/heat/ac/long arm/hydraulic thumb/keyless ignition. Everything except for the fast track and I believe that was a 1700.00 upgrade on the price that I was given and it came out to be 49,800.00 and the financing was 4.9% for 48 months. I ran the numbers and from what I can see is that used equipment will probably get somewhere around 13% interest on a loan. With these numbers I found that it would come out to be the same price over 4 years for the new one vs the used and I get a warranty, close to zero hours and no damage.
    thruth be told is that I have a home equity line of credit that affords me the cash at an interest rate between the two above and is tax deductibe on my home and allows me to get the equipment that I need. My question is that I have heard that as soon as you take a piece of equipment off the lot, just like a new car it has alot of depreciation. I am looking for what you all may think that it is worth. I was thinking that it would have to come in at 40,000.00 to make it worth it. Let me know what you think about used equipment.
  2. janb

    janb LawnSite Senior Member
    Messages: 254

    be very careful buying used (especially at a car lot:rolleyes: ) I would expect a minimum of 20% depreciation from the original price point, + extra for each model year older. If I knew the history (buying from original owner that has history of maint) then I might weigh it, but... in your case not.

    you have potential of cash purchase (tho I would not leverage my house for business assets, BTDT, via parents. Wasn't pleasant to see them lose a nearly paid off 70 acre prime view home, due to father's unexpected illness with home leveraged for business, Ironically enough my wife's folks did the same thing by 'betting on a sure deal', great business till the bottom fell out, they moved to a migrant shack for next 13 years.., in both cases wives were not impressed)

    Consider getting the best machine with the best dealer service and financing.

    I doubt it will be BobCat, (certainly not popular on this site), try out a few for at least a day each.

    If machine is your primary equipment, go new (can't afford to wait around for repairs and lose business) If it is secondary, a good used might do, shoot for a 1/2 price model with ~1500 hrs or less (try to avoid buying off a rental fleet (hammered) and avoid financing used equip, except for short-term, then pay-off on first couple jobs, and save for repairs) You can rent when your's breaks on a critical job. Excavators seem to be the easiest thing to rent,
  3. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    Shop for brand support. I've found Bobcat out here to be horrible but some have found their dealers to be very pleasing. It's all about dealer support when it comes down to it, the fastest, most productive machine out there is no good if it's down and can't get parts for 3 or 4 days. I would be leary of buying a machine from a used car lot, though. That's not to say I wouldn't buy used, but for $6-7K more you can have a brand new machine with no worries. That was our take on it, we paid $38K for our 303CR and something used would have been about $34K with about 400-500 hours. Any old dope could see it was cheaper for us to buy new.
  4. 2004F550

    2004F550 LawnSite Senior Member
    Messages: 271

    wow you got some good prices for that..ours was much more than that, but same options, different area different price I suppose ....for that difference I would buy new imo
  5. qps

    qps LawnSite Bronze Member
    from Indy
    Messages: 1,484

    wouldn't buy equipment with home equity....bad ideal....interest paid would be deductable on a piece of equipment for your business, without using home equity...4.9 for 48 months isn't a bad rate...

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