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Discussion in 'Heavy Equipment' started by me!, Oct 13, 2010.

  1. me!

    me! Member
    Messages: 31

    i will need a loader this season for one property.

    what is the best way to get a hold of one?

    rental and subbing, im looking at both options
  2. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    Rental is a big risk if you aren't a seasonal contract.....Better to sub if it's per push.
  3. me!

    me! Member
    Messages: 31

    sorry, it is seasonal

    PLOWTRUCK Senior Member
    Messages: 125

    Why is it a big risk? I rented machines quite often with seasonal contracts. Just look at your costs a make sure the numbers work. A loader( a good one anyway) is a big investment if the machine is only going to work in the winter. When you rent you get a pretty new machine. When you look to purchase you try and get a good deal on a used loader that many times turns into headaches if you try and find something cheap. Run your numbers and make sure it works before you do anything.
  5. me!

    me! Member
    Messages: 31

    what should i expect to pay for rental, there is plenty of room in the budget so its just a matter of if its going to save me enough time on plow trucks
  6. Advantage

    Advantage Senior Member
    Messages: 766

    Maybe its just me but didn't you run those numbers when you bid it?
  7. me!

    me! Member
    Messages: 31

    its a 10 acer account, they may be adding 5 more. there is room to pile with trucks, but i assume a loader would be better. If they add the 5 more, pricing will change. That is y i am asking the question.
  8. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    Loaders are definitely a big investment wether you rent or buy but they take the place of at least two trucks. Renting one for a per push is very risky, at least with a seasonal you know where you stand. Call around to get a price, around here a loader goes for at least 3,000/month. Thats a CAT 938 (I think). What about a backhoe? A CAT 430D rents for 1800/month around here. Then you most likely will have to get a push box for it. Push boxes go for anywhere from 2k to 6k. Is this a lot you already do?
  9. me!

    me! Member
    Messages: 31

    yes, we have been doing it for a couple years
  10. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    ok, my take on this, for the rent you are going to pay, why not buy a good used peice of equipment, there are so many deals to be had right now, at great prices. And doing snow with a loader isn't going to strain it at all, so if you buy a loader with some hours on it, really, it isn't like you are going to over work it. I bought a older 910 cat a couple years ago, with a rebuilt enging and drive train, had it gone through by a mechanic, all in I paid $15 000 dollars, and it i figure it has already paid for about 1/3 of my investment into it in one year, and that is only because we had a really crappy season last year. If we have snowfalls like we had 2 years ago, that machine well pay for itself in one season.
  11. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    Exactly! We bought our loader for 22k and the rent on a backhoe was 1800/month x 5 months = 9k :eek: Thats almost half the loader. Plus I'm getting a machine that will move more snow than a backhoe and I'm building equity in my business. It didnt make any sense to rent for that money.
  12. padude2004

    padude2004 Junior Member
    Messages: 11

    lets hope it works for ya. great find.
  13. got-h2o

    got-h2o 2000 Club Member
    Messages: 2,439

    It depends. Shop around......the prices above for rental are way high. There's a company here renting bigger loaders for $6,500 for the season. I'm talking few year old equpt.

    Some people can't buy stuff. Getting a $25k loan is easy for some, but not for others. Maybe he can justify rent, but not a purchase. Sometimes buying a loader and not being able to make any $$ on top of what it cost's isn't very sensible. In the long run, sure it is. But initially, not really.
  14. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    Is it a national company renting for $ 6500........If so get me the info.
  15. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    I said the rental is a risk if it's NOT seasonal. Obviously if you have a good seasonal contract the risks are much less, but depending on your numbers it could still be a stretch........
  16. me!

    me! Member
    Messages: 31

    thanks for the input.

    I guess the difference in price is what i was looking for. when i shop around im getting prices like 2500 a month, but i hear you can get them for 5 a season, but cant find any like that
  17. KCD Snow Pro

    KCD Snow Pro Member
    from IL.
    Messages: 35

    Check with your accountant about a purchase and ask about the bonus depreciation program just re-enacted by the feds. Allows you to buy a new piece of iron and if put into service before Jan 1 you can take your standard 179 deduction AND DEPRECIATE 50% OF REMAINING VALUE THIS TAX YEAR... No joke, look up depreciation bonus.org. Good info to have.
  18. blowerman

    blowerman PlowSite.com Addict
    Messages: 1,261

    Is this a question about loaders and snow removal or accounting 101?
    Sure you can take a accelerated schedule with depreciation, then if he decides to sell the machine within a year or two after buying it (maybe he finds it's not worth owning) the income from the selling loader will be taxed at that point...
    Buy a quality used machine if you have the use for it, otherwise sub out the loader work.
  19. KCD Snow Pro

    KCD Snow Pro Member
    from IL.
    Messages: 35

    You know, bringing up the comment about the tax after a sale if owned less than five years is a good point. However basically what I was trying to do was pass along some good info to have for not only him but to anyone else on here who might benefit from it. A lot of business owners have no idea of what's going on out there right now in regard to the bonus depreciation program.

    Also, did I tell him what to do other than check with his accountant about the benefits of a possible purchase? Hopefully his accountant (if he has one) will be well versed enough with the new small business bill that he can help him find some additional opportunities within his numbers.

    This lot and bid may not be the only thing that he has going on. Sometimes buying equipment just for a tax break is the smartest thing that you can do to free up cash for next spring. Knowledge IS power. Maybe it'll help open up some additional summertime opportunities. I can't remember off hand what the threshold limits for the new 179 expensing levels are but I do know that they were bumped up with the program. Anyway, new, used, rented or subbed out there's a lot to work with out there right now. Lots of rental houses are getting stomped and are more than willing to work with contractors.

    So to answer your question about accounting or deciding on a loader, in my book it all goes hand in hand. The most important part is to have a solid financial plan and make sure that you don't miss out on ANY tax advantages regardless of what you do for a living. Hell you can write off a rental also. It's all about what works for him.
  20. BowTieDmax

    BowTieDmax Senior Member
    Messages: 152

    Cat winter rates

    I just happen to have the price sheet in front of me. Good luck finding any of these listed because they are all taken for this season. These are all discounted prices for the winter.

    904--- 1,500.00 month
    IT14--- 1,800.00
    IT28---- 2,700.00
    930---- 3,060.00
    938----- 3,180.00


    430IT ---- 2,100
    430 ---- 1,800
    420IT--- 1,800
    420---- 1,575
    416 --- 1,320