Used CATs for sale
Purchasing used Caterpillars or CATs for sale is a great way to save yourself some money when you are starting up a new construction company. With all of the other construction companies seemingly in shambles over the last few years, with the downturn of the economy, it is even easier to find excellent deals on these pieces of machinery. However before you start searching for deals on a new-to-you CAT machine you will want to ask yourself a few questions to determine whether or not you should purchase the equipment, or if you should rent it and save yourself even more money.
First, how often are you going to be utilizing the equipment in your business? When you have a large volume of projects that are going to need to be accomplished, and can afford to trailer the equipment from one site to another, you are going to want to break down and make the purchase. Rather than buying brand new, though, you can find sites like eBay that will connect you with various other sellers, even some in your local area, that will have the equipment in slightly used condition for much less money than you would pay for a brand new machine. Used equipment has already lost its initial value when the original owner purchased it and began using it, which is something that you will not have to worry about when you’re picking the machine up in used condition.
If you do not have a large volume of projects that are going to require the machinery, you may be better suited to renting the machine until you are done with the project. Renting the machines for a long period of time can quickly add up in expenses, though. Before you make the determination to rent the machine you may want to think a bit further down the line, in terms of years, to figure out whether or not you are going to need to rent it again at a later date. The money you spend on renting the machine multiple times could easily add up to the costs you would incur if you were to purchase a used machine outright.
Next, are you in a financial position to be able to afford purchasing the machinery? How are you going to be paying for the machinery? If you are going to be paying out of pocket, you can save yourself quite a bit more money than if you were to ask a bank for a loan to cover the cost of the machinery. When you are planning on having a finance company put out a loan for the machinery you are going to have to take extra consideration to the amount of interest that will be paid in on the loan over the course of it. This interest can get incredibly expensive unless you have an impeccable credit rating.
Also, how often do you plan on upgrading the machine for a newer model? When you have used the machine for a few years are you going to need to replace it with a newer model that has newer technology? If you are, you may want to think about going a few years older than you had initially intended. Going a few years older than what you originally wanted will save you a few thousand dollars, or more depending on the size of the machine, which can quickly add up to the cost of another machine when you upgrade every 3-4 years, over the course of owning your business for 20, 30, 40 years or longer.
Have you compared the benefits of purchasing over renting the equipment? Renting the machine does have some perks to it. For one, if the machine breaks down you are not going to be putting the costs for repairs up out of your pocket, but rather the rental company is going to have to pay for them. Rental companies can also trailer the machinery to and from your jobsite, which can save wear and tear on your vehicle, as well as keep you from having to purchase the trailer and store the machine when you are not using it.
However, when you look at the costs of rentals compared to the costs associated with owning and maintaining a machine, the benefits usually end at having the repairs and trailering taken care of. As long as you are meticulous about the maintenance of the machine it should not cost you much more to repair it when it does break down.