# Excavator loan?



## emto112 (Feb 9, 2017)

Hey! Has anyone here took heavy equipment loan for buying an excavator for your own business? I am planning to take one and would like advice on kind of options to look for. I am also confused whether to buy an excavator or lease one. I know leasing can be less costly, but is it better than owning a brand new equipment? What do say about it?


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## seville009 (Sep 9, 2002)

You have to compare the costs side by side (own vs lease). Pick an excavator you have some interest in and just run through the comparison to give you a general idea. 

There will be alot of variables - ie: if you have the ability to do your own repair work.


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## leolkfrm (Mar 11, 2010)

i would look into cat, they have been running a deal that if you lease for a season and like it, they will apply the lease payments to the purchase.
also a lease return, 1 or 2 years old is cheaper


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## Philbilly2 (Aug 25, 2007)

Not sure how big of a machine you are looking to buy?

My last Kubota mini ex purchase, I demoed 4 different machines. My dealer applied all my demo rent to my purchase if I purchased from them, I also got 48 months at 0% threw Kubota Credit. I have 2 payments left so I am not 100% if they still offer 0%?


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## Hysert (Dec 16, 2009)

O%... why would any bank or whatever give money for free???? It's all worked in the price!!!


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## SnoFarmer (Oct 15, 2004)

There might be a gentaly tipped over one coming onto the market soon.


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## Mr.Markus (Jan 7, 2010)

SnoFarmer said:


> There might be a gentaly tipped over one coming onto the market soon.


Did that guy work for Mark...?

http://metro.co.uk/video/man-trapped-mud-just-nose-water-1408419/


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## SnoFarmer (Oct 15, 2004)

Mr.Markus said:


> Did that guy work for Mark...?
> 
> http://metro.co.uk/video/man-trapped-mud-just-nose-water-1408419/


No.
But you're getting warmer


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## Mark Oomkes (Dec 10, 2000)

Rumor on the playground is the operator of the gently tipped over excavator was not injured.


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## John_DeereGreen (Jan 2, 2011)

Hysert said:


> O%... why would any bank or whatever give money for free???? It's all worked in the price!!!


Not as much as you'd think.

Sit on the other side of the desk. You'd be amazed what you think you know but don't.


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## 1olddogtwo (Aug 6, 2007)

Demoing one of the the buildings down here today at the University.... must have been icy.....lol


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## Defcon 5 (Mar 20, 2014)

John_DeereGreen said:


> Not as much as you'd think.
> 
> Sit on the other side of the desk. You'd be amazed what you think you know but don't.


Isn't that the truth...I know very little so I'm starting at a disadvantage


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## Defcon 5 (Mar 20, 2014)

1olddogtwo said:


> Demoing one of the the buildings down here today at the University.... must have been icy.....lol
> 
> View attachment 170655
> 
> ...


If there-Their was water near by it could be Mark...I bet the operator got a bit excited


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## JD Dave (Mar 20, 2007)

John_DeereGreen said:


> Not as much as you'd think.
> 
> Sit on the other side of the desk. You'd be amazed what you think you know but don't.


Every time I've bought anything from Case, JD or Kubota there was always a cash discount.


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## Mark Oomkes (Dec 10, 2000)

John_DeereGreen said:


> Not as much as you'd think.
> 
> Sit on the other side of the desk. You'd be amazed what you think you know but don't.


I always wondered if the sales dude was blowing smoke as I have asked more than once what the price would be if I paid cash...they've always said same price.


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## John_DeereGreen (Jan 2, 2011)

JD Dave said:


> Every time I've bought anything from Case, JD or Kubota there was always a cash discount.


Bigger equipment (5000 series and the equivalent and up almost always have something) it's the smaller stuff they give very little if any discounts to the dealer.

More than likely they are not blowing smoke if they say there isn't one. Most of the time it's published if there are discounts. Kubota guys, you need to ask about CIR's (customer instant rebates) and discretionary funds from the territory manager; Deere guys need to ask for DGB (dealer growth budget). Bobcat always publishes their cash discounts.

Normally on DGB it's 5% of dealer cost is the maximum they can give you. If the dealer is out of DGB money keep pushing. Territory managers have more money to work with. Kubota discretionary funds are based on the mood that the territory manager is in the day the salesman calls and asks for them, that is unless things have changed since I stopped selling them.

Oh, something else. If you look up state contract pricing, state contract price for equipment is generally within 1-2% of dealer cost. That is prior to freight, setup, and any other fees they feel like charging. Most generally the difference in list price to dealer cost is 20-25% depending on what brand you're looking at, and the specific class within that brand. Small line dealers (from my experience) try to make about 15%, and larger dealers go for 10% again this is depending on the line of equipment you're looking at. Skid steer/excavator margins are significantly lower. Commercial mowing can also be extremely competitive.

There, that's a bit of insite from someone that's been on the salesman's side of the desk across from all of us cheap jackasses.


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## JD Dave (Mar 20, 2007)

I bought A kubota RTV last year and it was around 2k more if I took 0 percent. I always ask if there is a cost. Other then pickups and cars I've never been offered true 0 % financing. I'm hoping since Deere is slowing down a bit some deals might come out.


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## kimber750 (Sep 19, 2011)

According to wifey CAT is the same cash or finance.


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## John_DeereGreen (Jan 2, 2011)

JD Dave said:


> I bought A kubota RTV last year and it was around 2k more if I took 0 percent. I always ask if there is a cost. Other then pickups and cars I've never been offered true 0 % financing. I'm hoping since Deere is slowing down a bit some deals might come out.


Things may also be different up there with the conversion of US denero to Kannadian denero.

The biggest cash incentive I ever saw in almost 2 years was $400 on RTV's here in the states.


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## 98Chevy2500 (Nov 27, 2005)

Mark Oomkes said:


> I always wondered if the sales dude was blowing smoke as I have asked more than once what the price would be if I paid cash...they've always said same price.


Yep, they were blowing smoke, I've always found out what the difference is between cash and finance, unless it is a really good deal it sort of makes sense to use their money for a while. Last 0% loan was 68K, the cash discount was about 5K iirc. Going into winter I was hesitant to hand over the cash, and bank finance would have ended up costing more in the long run. Never understood why they penalize for early payoff of 0% loans though.


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## emto112 (Feb 9, 2017)

Thanks guys! I am looking for a medium sized one. A friend said that in many cases leased equipment need frequent maintenance and repair and recommended to buy a brand new one. How true is that? One more thing, when I was looking for more information about heavy equipment loans, I came to know about loan for construction equipment leasing. Any advice about it? Sorry if I sound stupid, but I know very little about these loans and financing, except for my home mortgage.


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## Philbilly2 (Aug 25, 2007)

Mark Oomkes said:


> I always wondered if the sales dude was blowing smoke as I have asked more than once what the price would be if I paid cash...they've always said same price.


Tried to buy this Kubota cash as I am not a loan guy. The dealer offered no cash discount to just write a check. I was shocked! Every truck I have bought, there has always been some type of incentive to just write a check, weather it be an upfit package, or some other garbage... So at that point, you want to go 48 months at 0%... no matter how I ran the numbers it made no sense not two.


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## John_DeereGreen (Jan 2, 2011)

Philbilly2 said:


> Tried to buy this Kubota cash as I am not a loan guy. The dealer offered no cash discount to just write a check. I was shocked! Every truck I have bought, there has always been some type of incentive to just write a check, weather it be an upfit package, or some other garbage... So at that point, you want to go 48 months at 0%... no matter how I ran the numbers it made no sense not two.


Was it a newly released model at the time you bought it?


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## leigh (Jan 2, 2009)

emto112 said:


> Thanks guys! I am looking for a medium sized one. A friend said that in many cases leased equipment need frequent maintenance and repair and recommended to buy a brand new one. How true is that? One more thing, when I was looking for more information about heavy equipment loans, I came to know about loan for construction equipment leasing. Any advice about it? Sorry if I sound stupid, but I know very little about these loans and financing, except for my home mortgage.


Leased equipment is usually new in my experience.I don't know your situation or work lined up but I would consider rental first,day,weekly or monthly.If buying I would let the first buyer take the loss on his purchase,there's thousands of low hour machines out there.Tough to take a loan out for 125k + + for a midsized machine unless your established with good job history.Then you've got to move it,20k trailer and large truck,or your're going to pay 300$ + to move it,plus storage space when its sitting.There's so many variables I can't even write them all down,it would take pages! What do you consider a mid sized machine,to me its a 40k lb machine like a Cat 320.Actually seems small compared to the Cat 349 or the Volvo 700 at 160k lbs.I've always eyed those 3rd party loan companies with suspecion ,just my .02 cents.


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## Philbilly2 (Aug 25, 2007)

John_DeereGreen said:


> Was it a newly released model at the time you bought it?


Yes.

First year of the new KX 018-4 replacing the KX 41. Purchased in late 2012 and it was a 2013 machine.


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## John_DeereGreen (Jan 2, 2011)

Philbilly2 said:


> Yes.
> 
> First year of the new KX 018-4 replacing the KX 41. Purchased in late 2012 and it was a 2013 machine.


That makes perfect sense then. On the flip side, just like vehicles when there's a new model rollout they love to discount the hell out of the old ones.


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## Philbilly2 (Aug 25, 2007)

John_DeereGreen said:


> That makes perfect sense then. On the flip side, just like vehicles when there's a new model rollout they love to discount the hell out of the old ones.


That makes a lot of sense.

When you see the operator layout... it was a no brainer... old machine was a pile compared to the new layout.


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## John_DeereGreen (Jan 2, 2011)

Philbilly2 said:


> That makes a lot of sense.
> 
> When you see the operator layout... it was a no brainer... old machine was a pile compared to the new layout.


Sometimes it amazes me that machines ever get out of the prototype and field testing stage.

My only guess is they don't put actual operators in them, just lever jockeys that are told to just tear **** up.


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