Do You Keep Your Old Heavy Equipment or Sell it and Rent?
The question of keeping or selling a old machine is a highly individual management decision. I do not believe in a One-Size-Fit-All, answer. There are just too many variables. Just one of these variables is the “Type of Use Planned.” A friend has a CAT D5 Dozer. He is not “in the business.” He just likes tinkering and pushing dirt around on his property. His decision to Keep or, Sell and Rent, will be very different than a businessperson (who is employed at a profit-oriented enterprise), might make.
The question of keeping or selling a old machine is a highly individual management decision. I do not believe in a One-Size-Fit-All, answer. There are just too many variables. Just one of these variables is the “Type of Use Planned.” A friend has a CAT D5 Dozer. He is not “in the business.” He just likes tinkering and pushing dirt around on his property. His decision to Keep or, Sell and Rent, will be very different than a businessperson (who is employed at a profit-oriented enterprise), might make.
A $10,000. machine could be different than a $38,000.00 machine. The point is that if you do not accurately calculate the COST per hour, you will never know how much that old machine really costs per hour. What seems to be the right decision, may be costing you more than you think.
This decision changes over time. A 1998 CAT 345BL had an auction value of $77,000. in 2008. Today that same machine may bring $38,000. I think this could change your decision to Buy, Rent or Sell.
Keeping a machine is a lot like buying a horse for your daughter. It will cost you more than you think. The cost per ride is shocking, if she does not ride it much.. I have seen old machines cost an owner $250.00 per hour. vs. $75.00 per hour for the same machine on the front line that gets used.
The important take-away is that you have to cost ALL your machines, not just the ones that get used.
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