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Skid rental

Discussion in 'Heavy Equipment' started by Jayson_109, Aug 28, 2009.

  1. Jayson_109

    Jayson_109 Junior Member
    Messages: 22

    Just curious if anyone rents a skid for the season, thats always in your possesion, but was able to work out like a deal on the rent so you don't pay for the whole month(s). Only pay for the hours you put on it??? I've seen the skids sit in the lot for 3 months or so while nothing happens, but I don't really see some of these guys paying out 2K or more for monthly rent?.?.?
    Bobcat place I talked with today was like we don't have the inventory anymore because the economy and couldn't even get a skid with heat! I was like wow! thats just ridiculious.... and they were strickly by the day, or month no matter what. Couldn't even guarantee me that he would have anything.
    Anyone deal with Cat rentals? any insight or thoughts would be great.
     
  2. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    New Holland advertises a snow special on this site that seems like a good deal. I would check with a NH dealer.
     
  3. NorthernSvc's

    NorthernSvc's Senior Member
    Messages: 766

    sunbelt sets up special monthl deals, also check out hertz.. they expensive tho
     
  4. Camden

    Camden PlowSite Fanatic
    Messages: 6,598

    I've checked into Cat, Volvo and JD leasing. The prices vary quite a bit from place to place. Cat offers a winter program where they'll give you a machine plus a pusher so you don't have to buy anything.

    An example of their pricing is a 256 skid for $1077.30/month (100 hours allotted each month, hours don't carry over if they're not used).
     
  5. fireboy6413

    fireboy6413 Senior Member
    Messages: 396

    The company I will be dealing with is 1400 per month with 80 hours anything after 80 hours a month is pro rated
     
  6. AiRhed

    AiRhed Senior Member
    Messages: 401

    You're definitely going down the right road. Renting is the way to go unless you're running some serious hours. My suggestion is don't stop looking just with the dealers. A lot of smaller landscaping companies own skids that will sit all winter long without use. I've come across more than 8 skids on craigslist that are being offered for rent by private parties. You should also check with Herculift and other equipment rental companies.
     
  7. snowguys

    snowguys Senior Member
    Messages: 708

    thats what i did found a guy on craigslist and he was from wis and im from chicago i got two L170's for $700 each per month no hour limit
     
  8. fireboy6413

    fireboy6413 Senior Member
    Messages: 396

    wow I didnt even think of that, for what snowguys is going to pay ill have the two machines to
     
  9. magnatrac

    magnatrac PlowSite.com Addict
    Messages: 1,055

    Most rental shops cut a price break for monthly rentals. I used to rent for odd jobs a day or two at a time but then realized I could own one for the same price. You can get a L170 for $ 400 a month and own it. I know alot of guys don't want to over head but they are a good investment. My first skid was a N.H. ls160 I bought it for what I was paying for a daily rental per month. With the deals they have right now you could own a machine for less than rent. Weather you rent or own you still need to put insurace on the machine alot of times so you might as well get something for your money ! Just another thought !!!


    good luck , shaun
     
  10. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    I have to agree with shaun above... plus If you BUY it you can write off the interest on the payments as well as the depreciation of the equiptment..... Now thats a win/win!
     
  11. Jayson_109

    Jayson_109 Junior Member
    Messages: 22

    guys have a lot of great ideas going... not know if I really want to buy... don't really do any other work... I know tho... it could open new doors. Thanks guys
     
  12. snowguys

    snowguys Senior Member
    Messages: 708




    your right i should of just bought one but i wasnt to sure about the payments and how big i was going to get so i just took the safe route this year i'll be shopping for a new one
     
  13. Bajak

    Bajak Senior Member
    Messages: 999

    Buy, rent, lease. whatever. The economy depends on money exchanging hands and if you can sub out work profitably that is my suggestion. My own business would not exist with out subcontracting whatever I need. I own one pick-up truck that is light duty(it carries tools and fuel). If I need something bigger I sub it out I don't buy it out to put my neighbour out of business and profit myself and lose all of the potential networking opportunities that may eventually help grow my business.

    Networking works! If that is untrue then I am on the road to nowhere.

    It is much harder to build a business now than it was 30 years ago doing what it is that we do. I wish I could be a part of the building of interstate highways and the like than just settling for the repairs now.

    I think I'll just collect magnets and wire for the next generation of commuters.payup That will be fast:nod:
     
  14. AiRhed

    AiRhed Senior Member
    Messages: 401

    I hear this a lot. And honestly I have to disagree. There's a lot more involved in the cost of owning a piece of equipment than just the monthly payments. I work for one of Minnesota's largest and longest standing Restoration companies.(totally not trying to brag here) We rent 100% of our machinery for two important reasons. When the damn thing breaks, which they do ALL the time, a new machine is sent to the site or to the shop within the day. When the machine needs service, the leasing/renting company sends THEIR tech, on THEIR dime, with THEIR oil, parts, etc.

    We may end up paying the same as owning the actual piece of machinery, but by renting, our piece of machinery is always relatively new, and replaced/repaired when it breaks at no cost to us. Just my two cents. We use mainly a lot of skids, Lull's, ingersol rand front end loaders, JLG's, wheel loaders, and excavators. We don't own any of them.

    I will say however, that I personally do plan on purchasing equipment within the next two years. Primarily a skid, front end loader, and a Tool Cat.
     
    Last edited: Aug 29, 2009
  15. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    AirHead/Mike

    You do bring up some pretty good ideas yourself. If you own your own business you WILL see a huge benefit to owning instead of renting..... thats a fact... now, yes there will be maint/repair issues that we all have to contend with... if the skid breaks ( which the repairs will be tax deductible), I'll just call and rent one until mines fixed.... just part of doing business

    Jayson,
    Good luck with whichever direction you decide to go with... there are pros and cons to both sides!

    Let it snow!
     
  16. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,045

    If you lease or rent everything you gain no equity. I know equipment is a deprieciating asset but IMO if the numbers work to buy it, do so.
     
  17. AiRhed

    AiRhed Senior Member
    Messages: 401

    These are great points. Honestly, I've never looked at equipment as good equity building assets mostly because of the rapid depreciation. I also didn't think of repairs being tax deductible. Looks like two more positive reasons for equipment ownership vs rental.
     
  18. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    It's a time commitment.
    Say you rent by month, if it doesn't work out, or you lose the contract or the economy goes down the (*^*&%% *(oppps, too late on that one), you're only trapped for one month (or maybe 3 months, depends on the lease)
    If you buy it, now you're trapped forever. You own some piece of equipment and it's sitting there doing nothing but costing you money (either the monthly payment, or insurance or taxes or just money sitting there doing nothing).

    Renting allows you to prove the concept cheaply before investing your limited capital into something.

    The rental payments are an expense.
    Equipment purchased is typically depreciated off over 3 to 5 years (although there are rules where you can expense it in the year of purchase, see your accountant). And remember, once something is paid for, it's "free" (notice the quotes) and earning you money with little outgo on your side. Sure, you have to replace it eventually, but making something earn money past it's depreciation schedule makes you a lot of money.
    Interest paid is an expense.
    repairs and maintenance are an expense.

    The problem with buying equipment, esp on credit is that every month you have to come up with the payment. And it's not an expense (except the interest portion of it).
    Bad month, too bad, pay me.
    repairs and maint costs high this month? too bad, pay me.
    No snow/work this month, too bad, pay me.

    Most business's fail because they run out of cash, not because they aren't profitable.

    With a short term rental, run out of money, no work, "hey, come get it", no issues.
     
  19. traviswalker007

    traviswalker007 Senior Member
    Messages: 188

    really

    Pass that info on to me..i need a couple..