Insight on buying a mini excavator vs renting

[gtbensley]

A couple of thoughts. It’s already been brought up, but do you really know what you are looking at used? I know how it works, after you own something for a while you learn the quirks and problem areas.

I always look at something from a cost per use or in the case of equipment per hour. A strange example, a bicycle. I was unsure about buying a $500 Trek bicycle years ago. If I road it twice and let it sit, that was $250 a ride, a bad purchase. I have probably rode it several hundred times so it’s maybe only $1 a ride now, a good purchase.

I have actually sat down and estimated my last tractor cost per hour, a Kubota BX. I tried to figure everything, residual value, fuel, maintain etc. it’s probably a little less than $15 per hour. So if it takes me an hour and a half to mow, could I hire it done for $25? Not even close.

So if you buy a mini exec for $20k, work it for a couple of years and sell it for 20k, you probably just had a few dollars an hour in it for fuel and maintenance. On the other hand you buy one with problems, spend 10k on fixing it, don’t use it much, you could have several hundred dollars per hour to use it, a bad purchase.

My point is can you get a good buy, not have to put a bunch of money in it, and sell it for near what you paid? The safe thing is to rent, but that may or may not be the correct answer. There will always be people that buy cheap and sell high but are you that person?

Great thoughts and a good way at looking at things. I have also broken down the cost of hr on my b7500 to see if it's worth owning. It has been for me.

I feel I know enough to know what I am looking at. Having said that, mechanical things can just break! Crap happens and know one can predict that.

Normally I buy correctly and sell hi. I have been bit once and lost out before though.

 

[Hay Dude]

Carolina Carport to the rescue?


Aaron Z

You know they are really tough to get ahold of. Always need to wait 6 months for them to get here.

 

[Hay Dude]

They limit it to 40hrs for the week yes. Local company is a bit difficult to deal with from previous experience. Trying to see what other options I have for renting as I am not a big fan of them.

Did some shopping around and found a company that rents all equipment 7 days/50 hours. All others were 40. Its a smaller family run rental business.

 

[gtbensley]

Did some shopping around and found a company that rents all equipment 7 days/50 hours. All others were 40. Its a smaller family run rental business.

I do know a local fellow who has a few year lease on a new Bobcat E42? I believe he is renting that out as well. I will ask him

 

[Muhammad]

I do know a local fellow who has a few year lease on a new Bobcat E42? I believe he is renting that out as well. I will ask him

You're looking at about $30-$35/hr rental cost. If you buy one and put 100 hours on it in a year, will your cost of ownership be less than $3,000? If you buy right, it should. If you keep it two years and put 200 hours on it, have no major issues, you should be well under $6k in depreciation and maintenance. So it boils down to how many projects you actually have and how much you'll put it to use.

Just noticed that NH has no sales tax so that's a big advantage. Usually that's a 7-9% hit right off the bat.

 

[4570Man]

You're looking at about $30-$35/hr rental cost. If you buy one and put 100 hours on it in a year, will your cost of ownership be less than $3,000? If you buy right, it should. If you keep it two years and put 200 hours on it, have no major issues, you should be well under $6k in depreciation and maintenance. So it boils down to how many projects you actually have and how much you'll put it to use.

Just noticed that NH has no sales tax so that's a big advantage. Usually that's a 7-9% hit right off the bat.

That’s best case scenario use. If you pay the rental and don’t use it the max hours the cost goes up a lot.

 

[fried1765]

You're looking at about $30-$35/hr rental cost. If you buy one and put 100 hours on it in a year, will your cost of ownership be less than $3,000? If you buy right, it should. If you keep it two years and put 200 hours on it, have no major issues, you should be well under $6k in depreciation and maintenance. So it boils down to how many projects you actually have and how much you'll put it to use.

Just noticed that NH has no sales tax so that's a big advantage. Usually that's a 7-9% hit right off the bat.

For folks in Mexafornia, the NH no sales tax concept must be a pipe dream.
Mass holes do a lot of buying in NH for the no tax reason.
Mainiacs do some too.

 

[gtbensley]

Yup, no sales tax is a great thing.

 

[CobyRupert]

Deleted - not going to bite.

 

[Sittingbull2]

I bought a used one about a year ago 2018 model Kubota KX71-3. Cleared my land and did my dads land cleared my brothers land also. Dug some trees with it about 10" to 12" diameter. Little slower than a big one. filled in a pond with it. It has a thumb on it, wouldn't go any other way. Held logs with bucket and thumb and cut firewood to about 18" length. It has so many uses. I am glad I got one. Had 780hrs. on it when I got it. Pd. $26,000 for it. Best bang for the buck for me. Also made a little money with it doing for others around here in Southeast Texas. I say getcha one won't be disappointed. Do stuff when you want to do stuff. No timeline and your not just throwing money out the window renting one. Maintenance ain't that big of a deal. If you can change oil and filters and every once in a while a hydraulic hose when you bust it you still ahead of the game.