Buying an excavator with resale in mind

[MarkFromWA]

I have so many projects in mind for the next 3-ish years (landscaping, retaining walls/terracing gardens, digging up boulders in the fields, root cellar, trenching for utilities for a few projects, etc) so I'm looking into buying an excavator. The rental options near me are very limited, and I have a long trailer-unfriendly driveway, so just getting an excavator here and back would take up a rental day (plus, the few rentals within an hour drive are 3-ton). Contractors are usually scheduled pretty far out too, and I don't want to wait around to get stuff backfilled so I can move on to the next project. I'm pretty well set on something between 5 and 8 tons. My biggest concern is usability in my rocky soil, so I ran it by a contractor who's had 304, 308 and 312 machines out at my place for various jobs. He thinks even a 4-ton would be fine for most of it, but moving some of the heavier boulders wouldn't be possible on the small end. I'm certainly not going smaller than 4-ton.

I've spent quite a bit of time perusing machinery trader and FB marketplace. Lots of options out there:

• $35-45k for 3500-5000 hour name-brand (Cat/Deere/Kubota/etc) machines usually from the kinda-shady used equipment dealers/lots. I always gotta wonder about the history of these sorts of things. I get especially nervous when they're also selling gray-market machines (and not listed as gray-market, but it's a model number that was never sold in the US). As an example, $35k for a 5000-hour 2006 Kubota KX161-3 that's clearly had a hard life, and despite a new engine needs attention elsewhere.
• $45-55k for nicer off-brand machines that are going to be harder to get service, especially where I live. For example, $45k for a 5000-hour 2014 Hyundai Robex 80cr-9 that looks to be well-maintained (two owner), has a new-ish track, etc.
• $55k+ for low-hour name-brand machines. For example, $65k for a nice-looking 500-hour 2019 Cat 305E2 CR with a few buckets.

I don't want to keep the excavator forever (more precisely, my wife doesn't want me to keep it forever), and I expect I might put a couple hundred hours on it in a few years. Resale after that time is top-of-mind. I'm willing to spend the money to get a nice machine, and the conventional wisdom is that a name-brand excavator holds value well, but then I'm worried about finding a buyer who can purchase it without financing or perhaps taking a bath on resale if the economy tanks. And the more I spend, the more exposed to the possibility that I way overpay due to my lack of knowledge about excavators. I'm also not opposed to getting an older machine that's a bit sloppier around the corners and harder to work with, but still digs holes faster than a shovel, but then I'm worried about all the issues with high-hour machines. Any nuggets of wisdom? My gut instinct is to get a beater and embrace the adventure. Should I get over my fear of investing in a newer machine? I know so little about excavators (how difficult major repairs are, how often they need major repairs) that I'm having trouble evaluating the value proposition.

And I recognize there's a non-zero probability that I'll fall in love and never sell it.

 

[Tomtint]

I bought a 1 owner 7k hour KX121 for something like 17k a number of years ago..did basic maintenance and put another 400 hrs on it over the years.. sold it a couple years ago for 23500.00

 

[Carl_NH]

I would be looking for a 2000-2500 hr machine 8-10 years old like the Takeuchi 260, Bobcat e50, JD 35 or 50G, Cat 303.5 or 304/305 size. Out this way, the 4-5 ton units sell for $35-45K with 2-3K hours. Usually the original owner has depreciated at 8 years, and with 2K hours you can expect minor repairs but not major issues or need to replace costly stuff.

The older machines - 15+ yrs and higher hours, things like hoses, tracks, wheel motors, etc. are going to fail eventually so if you do go for an older machine expect to have some downtime eventually.

I would look for one with maintenance records, dates on filters and such, with decent tracks, drive sprockets good and relatively tight pins and not much slop in the boom and bucket. If you stay in the 10K Lb class these are easier to transport, and ultimately resale if or when you decide to sell. As TomTint pointed out you won't lose money on these, its a matter of finding the right one.

Good luck in your quest!

 

[Hay Dude]

I just bought a Wacker Neuson 9 ton machine with 2700 hours for 28K. I wanted a Tak, Kubota, etc., but after 6 months of looking, I couldn’t find one that suited me. Steadily building up a fall/winter work load for it after farming slows down.
Can’t wait to get going with it and make some money.

 

[MattB4]

Might want to explore leasing. Sure some folks will have great stories of how they bought a used machine, worked it hard with no equipment breakage costs, than turned around and sold it for as much as they bought it for but those are the lottery winners.

More typical is, unless you are very careful, you buy someone else's problem when you buy used. When you go to sell no one will buy unless it is a really great deal. The; "If I am selling it is the greatest thing ever, you should pay me top dollar and when I am buying it is trash that you should pay for me to take it from you", comes into play.

 

[paulsharvey]

Municipal auctions. Cat/Deere/Kubota/Case/Takeuchi/Bobcat/Wacker/Sany/Kebelco/Komatsu/Veermer/Volvo all should have parts availability. If you're really going to resell; i would look for around 1500 hours, and decent tracks/undercarriage. Don't expect AC/closed cab on 35 class machines. Anything that used a hydralic hammer; Run.

 

[paulsharvey]

Might want to explore leasing. Sure some folks will have great stories of how they bought a used machine, worked it hard with no equipment breakage costs, than turned around and sold it for as much as they bought it for but those are the lottery winners.

More typical is, unless you are very careful, you buy someone else's problem when you buy used. When you go to sell no one will buy unless it is a really great deal. The; "If I am selling it is the greatest thing ever, you should pay me top dollar and when I am buying it is trash that you should pay for me to take it from you", comes into play.

Cat and Deere, and maybe others, have at times offered some very creative lease to purchase programs. Such as, you make a slightly inflated payment for 3-5 years; lease, with the option to purchase at basically scrap value at the end of lease;

 

[Topzide]

Check out purplewave.com.

 

[paulsharvey]

Well, let's back up just a bit. What machine will do what you need, and what limitations are there? Do you need it to bit X deep, or lift Y ammount, or do you need it to fit in an area that's only xx feet wide? Is a JD35 the size class that best fits you, or can you use something like a PC85 Komatsu? Would a JD120 be too big? Is a track hoe even the right tool? Will you ever need to transport it once it's dropped off? Do you have a tow company around that does contract low-boy moves?

Heck, are steel tracks a good or bad thing for you?

Point being; sometimes something like a JD-120 with like 5000 hours can be cheaper than a JD-50 with 1500 hours. They are very different tools, though.

There are only a few things that a small-medium machine can't do with more time; that also larger machine can do; over come gravity (lift weight), and deal with wet holes. So, ground water, rocks, fat gumbo clays, ect; as well as trees/stumps; really change the whole nature of the question.

 

[Tomtint]

I'll add to my last post.. after selling the KX121 and not having a minix for about 2 years, I bought .. actually leased a bobcat E35 with a long stick.. it's not near as strong as the KX was but for my needs it's fine. 4 year lease and by that time I bet I won't have 500 hrs on it so it should still have decent value. .. I'm 2 years in the lease now and have less than 100 hrs.