Buying an excavator with resale in mind

[4570Man]

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.

I’ll take that bet again. I had one for about a month and I sold it. If it was a newer rear engine joystick machine it might be a different outcome but these front engine machines that are actually cheap are dinosaurs. An excavator will burry these.

 

[paulsharvey]

In my part of the world, nobody, uses those old style tracked loaders. They can't do what a dozer does, travel way to slow to do what a loader does, and have a very expensive operating cost. With that, they do land clearing better than a dozer, and if light woods, faster than a hoe. The couple times you will see them, its a 40 year old machine that a guy bought to clear a lot, and plans to park in the back to rust away when done.

They dont do well in wet areas.

 

[4570Man]

In my part of the world, nobody, uses those old style tracked loaders. They can't do what a dozer does, travel way to slow to do what a loader does, and have a very expensive operating cost. With that, they do land clearing better than a dozer, and if light woods, faster than a hoe. The couple times you will see them, its a 40 year old machine that a guy bought to clear a lot, and plans to park in the back to rust away when done.

They dont do well in wet areas.

My old D5 that weighs about the same as the 955 would grade vastly better than the 955 could do. That’s the leading reason I sold my 955. Honestly I could do more work with my skid steer than the 955. It was just too slow and clumsy.

 

[paulsharvey]

It sounds like our OP really is a very good candidate for a JD-35/50/70 class machine. (or other make)

This is a big investment; so cost out multiple options; spec the way you want. Look at month cost lease vs purchase. Warranty, service, parts, whole package.

Do realize even a small (midi I've seen it called) hoe is in for a rough day with trees/stumps/boulders. They make a 2 part chemical injection to crack big rocks. It's not fast, with the drilling and all. Consider working around the biggest stumps/rocks. Sometimes its better to build a grade up to go over a rock than remove the rock.

Then think, will a JD-35 do 80% or so of what you want. Not 100%. Maybe you rent, hire, or dont do the 20%. Maybe a 50 class is better? This is a big investment, and make sure it is well thought out.

I'm not against a hydralic thumb on a small machine; but it often makes me think; does this guy know the limitations of a 3.5T or 5 T machine. Putting a thumb on a JD-50 doesn't turn it into heavy land clearing equipment.

 

[anomad]

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

I've moved a fridge with my excavator. Never had to lift anything heavier than a strap. Machine and Ms. Parton (aka Dolly) did the rest. I've debated getting pallet forks for it, but they are pricey. Would sure be handy to lift sheet goods or whatever up to a roof line.

 

[mikester]

I'd love to buy an excavator for the farm. The reality for me is that it's cheaper to line up jobs and rent a late model machine in the size I need by the week. Sometimes it's even cheaper to hire a guy with a machine and I don't worry about anything but getting the job done the way I want it. With renting or hiring there are No maintenance costs - that's someone else's problem. I also get 100% write off in the current tax year.

 

[paulsharvey]

I'd love to buy an excavator for the farm. The reality for me is that it's cheaper to line up jobs and rent a late model machine in the size I need by the week. Sometimes it's even cheaper to hire a guy with a machine and I don't worry about anything but getting the job done the way I want it. With renting or hiring there are No maintenance costs - that's someone else's problem. I also get 100% write off in the current tax year.

True, but when you look at a week long rent, even 4 times per year, that's getting to pretty close to equal with a years payments on a purchase or long term lease.

On long term lease; often You are responsible for maintenance. Think leasing a car vs renting a car. You dont do tires/PM service or repairs on a rental, but a lease, you do.

 

[paulsharvey]

Looks like Sunbelt is $1250/week; or about $1500 after fees, ect. If our OP is going to use it 6 weeks/year, for 3 years; he's at $27,000 in pure cost. I believe his thinking; spend $35k, and resell for $25k

 

[Hay Dude]

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.

I just did this with about a dozen boulders. If the excavator has a blade (mine does), they do an excellent job of leveling ground

 

[Hay Dude]

True, but when you look at a week long rent, even 4 times per year, that's getting to pretty close to equal with a years payments on a purchase or long term lease.

On long term lease; often You are responsible for maintenance. Think leasing a car vs renting a car. You dont do tires/PM service or repairs on a rental, but a lease, you do.

That's the point I achieved.
I was renting 6+ times a year. My Amish helper said to me "you know when you rent, that money is lost forever. When you buy, you invest your money in something tangible you'll eventually own".

Simple, but often overlooked.

With all used equipment, it's not the payments that kill you, it's the unforeseen repairs. That cannot be overlooked, either.