Cost of ownership

Discussion in 'Heavy Equipment & Pavement' started by Total Landscape Solutions, Aug 18, 2007.

  1. Total Landscape Solutions

    Total Landscape Solutions LawnSite Member
    Messages: 190

    Anyone ever figure the cost of ownership on a medium size skid steer (Bobcat 250, John Deere 325)?

    I'm looking at purchasing one next year and wanted to see if anyone had figured the total cost of ownership (monthly payment, insurance, maintenance, tires, depreciation, fuel, etc...) per month or per year.
  2. Total Landscape Solutions

    Total Landscape Solutions LawnSite Member
    Messages: 190

    So does anyone know the cost on their equipment? If not, that's kinda scary.

    Or is this one of those secret financial business numbers no one wants to share?
  3. meets1

    meets1 LawnSite Gold Member
    Messages: 3,850

    For a monthly fee I'll let ya in on a little secret!!

    Depends really upon your hours used, fianacing options, trade-in's. Now I do alot of mowing and my Z's cost me the least while my WAMS cost are more - reason - more $ to fix for a minor repair, but yet in total hours used - the WAMS bring home the bacon!
  4. Total Landscape Solutions

    Total Landscape Solutions LawnSite Member
    Messages: 190

    Cost per hour would be a help too. Just trying to get a ballpark figure.
  5. Fieldman12

    Fieldman12 LawnSite Bronze Member
    Messages: 1,504

    Well I have one size smaller than the 325 and an older series Deere. It is the smaller frame but still should not be real far off. The machine burns around 2.2 gallons an hour of off road diesel. Im guessing a 325 Deere would be around 3 gallons or maybe a tad bit more. It really is hard to tell someone what they cost unless you know the type of applications the machine will be in and how often. At the least if not being used what ever your payment is if you have one, some deppreciation figures in there also, and what ever type of insurance you may have on it. Other than that as far as maintenance go's it is very simular in cost to a pickup I guess you could relate it too. Tires are probably the most expensive. It depends where you get them and what kind you buy but you might as well figure some where around $1,000.00 for all four. If you have any major break downs such as a pump or motor it can get into thousands of dollars real quick. Im just thowing this number out there but Im guessing somewhere around $15 to 30 an hour for everything. Someone else may have a better number for ya. How much fuel it burns can influence this number one way or another. You have to figure if you just bought road fuel at 3 gallons per hour it is costing you around $8.40 at $2.80 a gallon. How much you paid for the machine and repairs changes this number allot also. I always try to figure to put back some money for maintenance. You could probably get buy at $20 an hour would probably be safe to say.
  6. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    There's a lot that can go into this equation. First and foremost, the cost of the machine per month. Then how much fuel it burns per hour, maintenance costs per hour, the cost of owning a vehicle/trailer to move the machine around, upkeep of that vehicle and trailer, insurance for machine, truck, and trailer, business insurance, cost of storing machine or owning a shop/etc.. to store the machine. There are other factors such as tools and items you need to keep with you to perform maintenance on the machine, but I don't count that stuff.

    There are too many variables to land a solid number for you operation, a guy could be doing it for way less down the street than you and someone across the country might have it much more. Depends on your costs, they're all variable. What my cost is and what your cost is are 2 different numbers.

    I wouldn't be hesitant to say it costs about $30-35 an hour to operate a machine like that. Say you spend $20,000 on a skid and you depreciate it out for 2,000 hours. There's $10 an hour right there. Insurance varies, too hard to say what that would be like, fuel is around $9-10 an hour, tires are about $2 an hour, maintenance/repairs is about $3 per hour, it all adds up pretty quick.
  7. ksss

    ksss LawnSite Fanatic
    Messages: 7,157

    My experience says that you really cant use someone elses numbers. I can't even use numbers from one machine to the next in the same fleet. I will say that generally it costs me about 20-30 an hour.

    I have had some machines that were under 15. That was prior to tires and desiel getting so expensive.

    Another factor that is important is trade in value. That for me is my ace. I run the 2000 ROC machines for around 1500 hours and move them out and I get a great trade allowance. The machines seldom even make it to the dealers lot. Goes back to that relationship thing with the dealer.
  8. meets1

    meets1 LawnSite Gold Member
    Messages: 3,850

    I agree with SCAG48.

    I figure that machine of ours is sitting all day Sunday and not making a dime unless it snows! Therefore the remaining 6days need to be figured in for dollar cost average to make up Sundays lost day of work. When you finance something they don't set it up based upon a 6 day work week!! Kinda the same story with our snow plows. Sitten 9 months a year and I ache everytime I looked at the things!
  9. Total Landscape Solutions

    Total Landscape Solutions LawnSite Member
    Messages: 190

    Thanks for the replies, it's the info I was looking for.

    I've been operating skids steers now for 13 years and done just about every type of routine maintenance on them, just never had to pay for the parts/fluid. Never really knew what kind of expense it was, I just knew the cost existed from doing the work.

    I understand much depends on the purchase price, don't really know if I'll go new or used. Bobcat or JD. I must say the maintenance on the JD is much easier because of access to the engine/pumps. Which is a big deciding factor.

    Thanks for the info.
  10. treadlite

    treadlite LawnSite Member
    Messages: 137

    I've asked this before when people are complaining about the high hourly cost of tracked machines..... most people can't tell you what their wheeled machine costs to operate per hour, but they're all experts about what a tracked machine costs. (particularly the ones that DON'T own a tracked machine).

    fuel, tires, oil changes, routine maintenance as per specs, repairs, depreciation all factor in costs. add more for a machine not run by the's pretty tough to figure an accurate number until you've run a few months or so and see what things cost you.... different areas and operators can make costs differ greatly...

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