Skidderzone
New member
- Joined
- May 22, 2009
- Messages
- 1
I just sold a 2007 ASV RC100 to a major Tree Service Company. It had 237 hours, had the forestry package, Bradco M60 Mulching Head, Bucket, Rake with Top Clamp and a 20" Tree Shear. All of that went for $59,500.
There are some tremendous deals out there right now in the Mulching business simply because business has been tough. If a guy has decent credit he can buy some really nice stuff for almost nothing. We have recently sold two very large, high production Tigercat 760 Mulchers for about 60 cents on the dollar (60% of normal market price). When a guy can buy a machine like that for a third of what it sold for new, I'd say the larger guys are gonna feel some heat from smaller operators jumping back into the market.
A year ago it seemed like the better, bigger contractors would weather the storm while a lot of marginal, smaller contractors went out and they would emerge stronger than ever. Unfortunately as this cheap iron has hit the market, these guys who went out 6 months ago are now shopping around and getting some tremendous deals, allowing them to jump back in.
The problem with this as I see it, is the bigger operators bought new and are paying down those retail loans. These guys are getting top quality used equipment at half price. The bottom line is they can show up with a reposessed machine with 1500 hrs and they owe as much or less than some of the bigger operators owe on similar units.
Now they are looking and smelling like roses. In my opinion the larger operators have to take advantage of a down cycle as well and update older machines at the reduced cost point, ultimately benefitting from reduced op costs. Its the old buy low and sell high approach and you must take advantage of a down cycle in my opinion because they only come along once in a while.
IMHO.
I enjoyed reading this post, especially the last few entries and thought I would chime in.
There are some tremendous deals out there right now in the Mulching business simply because business has been tough. If a guy has decent credit he can buy some really nice stuff for almost nothing. We have recently sold two very large, high production Tigercat 760 Mulchers for about 60 cents on the dollar (60% of normal market price). When a guy can buy a machine like that for a third of what it sold for new, I'd say the larger guys are gonna feel some heat from smaller operators jumping back into the market.
A year ago it seemed like the better, bigger contractors would weather the storm while a lot of marginal, smaller contractors went out and they would emerge stronger than ever. Unfortunately as this cheap iron has hit the market, these guys who went out 6 months ago are now shopping around and getting some tremendous deals, allowing them to jump back in.
The problem with this as I see it, is the bigger operators bought new and are paying down those retail loans. These guys are getting top quality used equipment at half price. The bottom line is they can show up with a reposessed machine with 1500 hrs and they owe as much or less than some of the bigger operators owe on similar units.
Now they are looking and smelling like roses. In my opinion the larger operators have to take advantage of a down cycle as well and update older machines at the reduced cost point, ultimately benefitting from reduced op costs. Its the old buy low and sell high approach and you must take advantage of a down cycle in my opinion because they only come along once in a while.
IMHO.
I enjoyed reading this post, especially the last few entries and thought I would chime in.