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Used versus new equipment?

thepawnshop

LawnSite Senior Member
Location
Roanoke, VA
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.

Thanks!
 

Scag48

LawnSite Fanatic
Location
Marysville, WA
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.
 

Squizzy246B

LawnSite Senior Member
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.
 
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thepawnshop

LawnSite Senior Member
Location
Roanoke, VA
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.
 

Scag48

LawnSite Fanatic
Location
Marysville, WA
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.
 
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thepawnshop

LawnSite Senior Member
Location
Roanoke, VA
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.
 

Gravel Rat

LawnSite Fanatic
Location
British Columbia
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.
 

mrusk

LawnSite Gold Member
Location
northern jersey
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.

Matt
 

allaccesslandscaping

LawnSite Member
Location
bay area ca
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
 
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thepawnshop

LawnSite Senior Member
Location
Roanoke, VA
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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