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Used versus new equipment?

Discussion in 'Heavy Equipment & Pavement' started by thepawnshop, Oct 15, 2005.

  1. thepawnshop

    thepawnshop LawnSite Senior Member
    Messages: 387

    I am getting ready to rent a JD 120 for a month so out of curiosity, I priced the machine...about 120k. Now I look at comparable machines with a few years and a couple thousand hours on them on eBay, machinery trader and catused.com and a comparable machine can be had for about 100 thousand less. Personally, to date I have only purchased new equipment, but I may consider going used. What is everyone else's take on used construction equipment?

    The main reason I ask is that just renting a 120 for a month is going to cost me $4,200. Do that a few times and I could own a larger used machine.

  2. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    There's always the option of lease, but leases usually put you up crap creek without a paddle. Did you not go through with the mini-ex and are jumping right up to the big boy style? How come no Cat?! The new Deeres are pretty nice, but 312C's are SMOOTH. I like the 315's a little better because of the extra 25 hp, but they're both very nice. I don't know if Deere has the same program, but Cat has their certified used program, in which case you can get a near new machine that has been fully inspected by the dealer for thousands less with a large portion of the warranty left. That's problably the best option if you can get a Deere like that. Are you going to be putting a quick coupler on the machine? If so, I'd go hydraulic. They're pretty slick just unhooking the bucket from inside the cab. Anyway, let us know what you end up. $120K for a brand new machine seems like a damn steal to me, last time I checked 12 ton machines were going out the door for $140K, but our prices out here in the west are ridiculous.
  3. Squizzy246B

    Squizzy246B LawnSite Senior Member
    Messages: 837

    I picked up my skid from Cat used with 2 hrs on the clock..yes TWO and about 9K less than the new price. Cat used gets you into finance that the banks can hardly match. I expect to keep my machines for 5 to 6 years so I didn't want some pile of crap. However, if you may do some research on re-sale values it is possible to buy a good low hour machine, look after it, and sell it in a years time for the same (or one months rental) less. You just have to be at the right auction sometimes.

    Personally I try and buy new and intend to keep the machine but you have to weigh up the options. I'm currently looking to buy a used mini-ex just to do some work for 18 months. We bought our Kubota 161 new and will trade it at 4 years on another new one. It is the heart and sole of our operation and we would never consider used for what we need/do. Hope this helps.
  4. thepawnshop

    thepawnshop LawnSite Senior Member
    Messages: 387

    Scag, I did buy the JD 35d and have no regrets...I just would like to have a larger machine in addition to the rubber track machine, which is invaluable in tight spaces and the like. But when it comes to digging a basement or any larger jobs (septics for example) the 35d is WAY too small. A 120 may be a bit larger than I need...I am looking seriously at the Komatsu PC75U which is about twice the size of the 35.

    I like buying new, but I just can't justify 120+ thousand dollars for a machine that I may only use two or three months out of the year. That said, if used means "headaches", then I'm just going to keep renting.
  5. Scag48

    Scag48 LawnSite Fanatic
    Messages: 6,067

    2-3 months out of the year doesn't quite justify the purchase cost of a machine. To make an investment THAT large would require that machine working at least 6 months out of the year logging at least 100 hours a month. But I understand your aspect on renting, it gets to be expensive. Sounds like you're almost in the market for an older machine, if you're only using 3 months out of the year, buying a new machine or "near new" machine doesn't seem viable. I would shoot for maybe a 00-01 model year machine with around 1.5K-2K hours. That will be sustantially cheaper but still be a reliable machine. As far as digging basements go, the 120 will eat that 75UU up. A 120 sized machine is the smallest machine I would ever dig a basement with, anything smaller just takes too long. Your reach and dig depth is going to be much great as well and if you find yourself in a tough spot trying to load the truck that extra reach really comes in handy.
  6. thepawnshop

    thepawnshop LawnSite Senior Member
    Messages: 387

    You aren't kidding about basements...I dug the last one with my 35D...took a while and I had fun, but it isn't the best way to go. I have 11 more basements to dig in the subdivision I am in now...I hope to dig at least 5 with this rental.
  7. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Messages: 9,544

    Nooo stay away from the Komatsu its a POS one contractor I know had one a PC 75 he hated it the machine isn't balanced with that boom system and the cab is too small. He sold the machine now buying a EX-60 Hitachi. I ran a 158 for awhile wasn't impressed it burned fuel like no tommorow.

    If I was going with a new machine or a semi used one it would be a 15-18 ton machine its the way 100% of the contractors here work. They have a mini excavator 10,000-11,000lb range for the small jobs and a 160 sized machines for the every day jobs.

    Let me tell you I wouldn't be doing alot of basement excavations with a PC-75 sized machines it would be too slow. A average sized basement with a 16 ton machine should only take you a day depending on what the conditions are. If you run into car sized boulders where you have to roll them out of the hole that takes time.

    Buying a used machine isn't too risky if you buy one with low hours and buy from a reputable equipment dealer. Your guys machines are not abused like the machines out here are because your digging conditions are so much easier. When you buy a used machine here if its got high hours on it walk away from it.
  8. mrusk

    mrusk LawnSite Gold Member
    Messages: 3,260

    Its always nice to buy new, but if you can find a good deal on a used it might be worth it to go used.

    In the spring i am looking at buying a skid steer or a mtl and a Minix at the same time. I am going to be spending alot of dough. I been looking at catused.com and seems like you can save a bundle of cash buying a machine with 200 hours on it.

  9. allaccesslandscaping

    allaccesslandscaping LawnSite Member
    Messages: 103

    To me with the intrest rate the way they are you might be better off geeting a new manchine .. A lot of company are doing aqnywere from 1.5 to 3.5 % for 60 months. A 40,000 machine with 10 k down will run you about 500 a month.@ 3.5
  10. thepawnshop

    thepawnshop LawnSite Senior Member
    Messages: 387

    Gehl is the only dealer I know of offering 3.5% for 60 months. John Deere has 4.9% for 60 months and CAT has 4.5%. Do you guys know of any other deals? 40k for a new mini doesn't get you a very large machine, though, and I already have the JD 35D...which is an AWESOME machine in its class. I just need a bigger machine and renting right now seems to be the way I going to go in the short term. 25-30,000 pound machines seem to be running in the 100k + range new. OUCH!

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