Buying an excavator with resale in mind

[M59]

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.

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.

Based on machine never staying in your possession due to partners position, I'd being looking at negotiating a long term rental
or 3 year lease of 8-20K lb machine and compare that to buying used. Benefits of never owning are: You don't have to worry about resale. You don't have to worry about maintenance. You don't have an up front sunk cost of paying for a machine unless you carry a loan to buy the used equipment and then finding bank willing to finance used equipment is tricky.

I suggest you rent a machine and gain some experience so you can make better buying, rental, or lease decision.

You may learn your first choice for machine was insufficient for the job and you just return the rental and move elsewhere.

ps. If machine never leaving your property and not used on paved surfaces, as mine is, go with steel tracks as they are more tolerant of abuse and last much longer.

 

[MarkFromWA]

Thanks for all the good advice, everyone.

CarlNH, it seems like 2k hours is hard to find. It seems to be 80% 3500+ hours and 20% 500- hours, with not much in between. I'll keep my eyes peeled.

paulsharvey, Tpozide, I'm pretty far out there. It's 4-5 hours to the nearest place an auction might be, and I'd be hesitant to invest that kind of time not knowing if I'd even go home with something.

paulsharvey, I need something with a hoe. A backhoe would be less ergonomic, but I'm sure I could make it work. Our soil is too rocky for tractor-mounted backhoes. I've looked at full-size backhoes, and they don't seem to carry their value as well, but I really want a thumb for moving boulders, logs and such, and most backhoes don't have a thumb (and quite a few are the extend-a-hoe type that can't easily take a thumb). I don't want anything larger than 8 tons because then it really starts to get tight in terms of working area around the house (in particular the main front yard between the driveway turnaround and the front door is in the neighborhood of 40x40 feet, and I want to do a lot of landscaping there). I'd also be sacrificing a lot on price and/or condition to buy such a large machine. I don't think there's a perfect size. A larger machine means I'll get to play with bigger boulders. And during a big excavation project last year my contractor was going deep and reaching the limits of a 312 and though he might need to bring in a hammer (which he's done before for other projects). If I get unlucky with a smaller machine, I might need to spend a lot of time on a particular rock, or make adjustments to the game plan based on the rock, or hire a contractor with the right equipment. Or maybe I get lucky. On the list of projects is a couple tree stumps (biggest was a 24" dbh ponderosa) and removing a defunct underground 1000 gallon diesel tank.

Steel tracks would be fine, great even, but there aren't many of those for sale.

 

[paulsharvey]

Thanks for all the good advice, everyone.

CarlNH, it seems like 2k hours is hard to find. It seems to be 80% 3500+ hours and 20% 500- hours, with not much in between. I'll keep my eyes peeled.

paulsharvey, Tpozide, I'm pretty far out there. It's 4-5 hours to the nearest place an auction might be, and I'd be hesitant to invest that kind of time not knowing if I'd even go home with something.

paulsharvey, I need something with a hoe. A backhoe would be less ergonomic, but I'm sure I could make it work. Our soil is too rocky for tractor-mounted backhoes. I've looked at full-size backhoes, and they don't seem to carry their value as well, but I really want a thumb for moving boulders, logs and such, and most backhoes don't have a thumb (and quite a few are the extend-a-hoe type that can't easily take a thumb). I don't want anything larger than 8 tons because then it really starts to get tight in terms of working area around the house (in particular the main front yard between the driveway turnaround and the front door is in the neighborhood of 40x40 feet, and I want to do a lot of landscaping there). I'd also be sacrificing a lot on price and/or condition to buy such a large machine. I don't think there's a perfect size. A larger machine means I'll get to play with bigger boulders. And during a big excavation project last year my contractor was going deep and reaching the limits of a 312 and though he might need to bring in a hammer (which he's done before for other projects). If I get unlucky with a smaller machine, I might need to spend a lot of time on a particular rock, or make adjustments to the game plan based on the rock, or hire a contractor with the right equipment. Or maybe I get lucky. On the list of projects is a couple tree stumps (biggest was a 24" dbh ponderosa) and removing a defunct underground 1000 gallon diesel tank.

Steel tracks would be fine, great even, but there aren't many of those for sale.

Ok, it does sound like your on the right track. One brand that might be worth researching, that i had never heard of until recently; Grizzly. Apparently they are manufactured by Hyundai, so its a made by a big brand, but pretty cheap, as far as machines go.

Correction, Doosan, not Hyundai

Mind you, I'm not actually recommending it, just something that might be worth looking into.

 

[Carl_NH]

Here's a couple of machines in WA that look close to your specs

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[paulsharvey]

So, some food for thought... If you see yourself using this machine something like 500 hours total; some of the 3 ton, diesel, import hoes are in the $20-25k range; and should so everything you need. It likely would resell for atleast $10k, after 3-5 years, assuming you dont actually destroy it. If you see yourself running up towards 1500 hours; I would probably go name brand.

So, there does seem to be a pretty big jump in price from the 2/2.5/3/3.5T to the 5-8T class imports.

 

[JohnTexas]

I had a similar rationale and situation where I needed to purchased a 100hp skid steer (not excavator) and was also concerned about machines sold by general equipment resellers and their history. I wound up purchasing a Caterpillar unit from the used equipment department of the large regional dealer. Mostly ex-rentals but were maintained by Caterpillar and it came with a warranty for a reasonable period. Note a lot of their equipment is under long term rentals rather than numerous short term jobs. I kept a couple of years and later sold it through Iron Planet which is part of Richie Borthers. Iron Planet is a viable avenue to sell used equipment as it gives you a national market exposure and they offer financing for buyers and shipping options. The process was professional and their agent came and took a lot of pictures and did some basic tests and operations which is all put in the sales documentation for prospective buyers. While it can be a bit costly it beats using FB Marketplace in my opinion as too many time wasters when you have a costly item which in my case was also located on a property away from where I reside. Just offering some food for thought from my experience in acquiring and subsequently disposing of equipment.

I share your view of buying to use at your own pace and then selling versus renting or leasing when you do not have a full time need or plan to work on projects off and on over a longer period. Although equipment ages the value is mostly driven by useage hours so sitting idle for longer periods between jobs does not tend to harm your investment.

 

[kenhar]

Unless you are just sold on a small track hoe, I would seriously consider a small track loader. With a 4 in 1 bucket it will do anything a track hoe will do and more. The only thing it won't do is dig a narrow ditch because the bucket will be wider than one on a small track hoe. Try to level ground after you have dug up your boulders and trees with a track hoe, no matter the size. Comparable size machines, the loader will should cost less.

 

[4570Man]

Unless you are just sold on a small track hoe, I would seriously consider a small track loader. With a 4 in 1 bucket it will do anything a track hoe will do and more. The only thing it won't do is dig a narrow ditch because the bucket will be wider than one on a small track hoe. Try to level ground after you have dug up your boulders and trees with a track hoe, no matter the size. Comparable size machines, the loader will should cost less.

You’re wrong on both accounts. The mini x does tons of work the skid steer can’t do and the mini x retail price was cheaper.

 

[kenhar]

I didn't say skid steer, I said track loader. Cat 963, Dresser 125, John Deere 650. These are not skid steers. These machines have steel tracks and are excavation machines. They're small, 18 to 24 thousand pounds but with the right operator will bury comparable size track hoes.

 

[sreeb]

Once you have owned an excavator, you would sooner part with your wife than the excavator.