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2016 Skidsteer Seasonal Rental Prices

Discussion in 'Commercial Snow Removal' started by MatthewG, Oct 29, 2015.

  1. MatthewG

    MatthewG PlowSite.com Addict
    Messages: 1,400

    Last year I rented a New Deere 332E for $1150 a month x 3 months

    This year the 16' Deere 326E is a whopping $1425 a month x 3 months

    I was sticker shocked, should I just skip it and buy something used?

    At $100 an hour after my operator is paid it will take 15 hours a month to just break even(not including fuel), with a minimum of 45 hours on the season. Eastern PA is no guarantee for snow.

    That's all for now, just disappointed its so much, is it even worth it to rent?
  2. John_DeereGreen

    John_DeereGreen 2000 Club Member
    Messages: 2,908

    That's cheap compared to here. 2500 ROC machines rent here for a minimum of 1800 a month and they require 5 months to get that price.

    Other than the ability to call and say it's broke, come fix it NOW, I see no benefit to renting.
  3. robber27

    robber27 Member
    from NE Iowa
    Messages: 54

    To me it isn't worth renting when your laying out $4225 just for 3 months. There are plenty of good proven skip's for sale in the 15 to 20k range, 2000hr's doesn't scare me if the machine is complete and appears takeing care of. Your on the hook for breakdowns and parts now but historicaly lthey aren't high matiance machines I think the risk is worth the reward. Best part is after 4 or 5 years you'll have something to show for it
  4. born2farm

    born2farm 2000 Club Member
    Messages: 2,310

    Were paying $950/month for s590 Bobcats and $1200/month for s650 Bobcats. Right now it makes the most s6ince for us to rent.
  5. John_DeereGreen

    John_DeereGreen 2000 Club Member
    Messages: 2,908

    Can you PM where you're getting those machines Brock? I'd love to phase out more trucks.
  6. Masssnowfighter

    Masssnowfighter Senior Member
    from ma
    Messages: 222

    Long term renting(more then a day or a week)is a financially stupid move. For example, 2 years ago I bought a Cat 242b3 in the fall for $16k, I used it to plow all winter then when spring time came I sold it for $22k. So not only did I get a free winter rental I also put several grand in my pocket just from owning it for less then 5 months. There is plenty of good deals out there for used skids, you just have to put your time in searching for them. There is some decent money to be made flipping plowing equipment. Bottom line renting is stupid
  7. ponyboy

    ponyboy PlowSite.com Addict
    Messages: 1,104

    For bobcat they want $1200 a month for a 650 for 5 months and 200 hours it's better to lease for whole year unlimited hours
  8. Ne1

    Ne1 Senior Member
    Messages: 370

    Hire a sub contractor and provide the snow pusher. There's lots of guys with new skid loaders looking to make a little extra money in there off season. Those rental rates are crazy.

    MIDTOWNPC PlowSite Veteran
    Messages: 4,554

    Try to make the plan a deal
    $500 a month min and then pay do much per hr on the clock

    The $500 a month goes against the hours used

    You only get what you negotiate for.
    Try going to a dealer and asking them I they have anyone who they think might want to connect with you and sub their skid.
  10. born2farm

    born2farm 2000 Club Member
    Messages: 2,310

    We do this too, but you can't always find enough guys.

    We've looked at leasing, but we have no need for these the rest of the year. I know we could just let them sit, but then we would need a bigger shop/storage.

    This may work if your only needing one machine. You start buying 5-6 used machines to flip, and you run into the risk of large repair bills. With our rentals we get a 200-300hr machines and the repair is on them. All our rental loaders are on seasonal accounts, so we figure the price in to the contract.
  11. Ben C

    Ben C Junior Member
    Messages: 9

    Just a thought to keep in mind when comparing the rent/own options. At the end of the year you can write off all of what you paid in rental fees, and you're not on the hook for the maintenance/break downs (so long as it wasn't your fault by doing something totally stupid and depending on who you rent it from).
    But if you buy the machine you'll be depreciating that cost out over the course of typically at least 5 years. AND paying for all the repairs/maintenance on the machine as well.

    Plus, if you're flipping the machine, and making a profit, there is the potential to run into capital gains taxes.
  12. rob_cook2001

    rob_cook2001 2000 Club Member
    Messages: 2,192

    Different things work for different people but to me, renting is like throwing money into a trashcan. If you get a slow winter all that money was waisted. You can find a nice 500-1000 hour s250,s300 for 30k. As long as it wasn't beat on it will be extremely reliable.
  13. djagusch

    djagusch 2000 Club Member
    from mn
    Messages: 2,107

    I bought my first skid steer used 4 yrs ago. It was a 2010 bobcat s205 2spd, etc, 4000hrs, $14k. It was a dairy farm unit used 2 yrs. I have 4700 hrs on it now and about $2k in repairs. An alternator issue in the first storm and after that it's been preventative maintenance or a seal here or there. Seemed like a good deal.

    Last year I needed another machine. Rented a cat 242 for $850 per month 5 months. Seemed decent and no issues besides ice in the fuel filter. This year they wanted $975 for the same machine.

    Decided to buy another 2010 bobcat s185 2sp, etc, 1300hrs. Came with a 16ft trailer, snow bucket , dirt bucket, snow tires, pallet forks for $21k. Had bobcat go through it and is really clean and needed nothing.

    Renting worked decent but it's 4500 I never will get back. After 4 to 5 yrs it would pay for the machines I bought and I have value at the end with the machines to sell later.

    Buying is the way to go but I can see where renting fits for some. Put the cost in your bids and you will be fine either way.
  14. iceman1

    iceman1 Sponsor
    Messages: 186

    Make sure you look at shop expense. We rent a ton and we feel it works. If you already max out your 179 tax deduction and you find that shop expense is high or you just do not have the resources when it snow to keep everything going you better look at renting. We find it to be a full time job just for guys to keep equipment fueled and pusher shoes and blades in good condition. When you look at renting look at the tax benefits, the benefit of not having to work on it, the fact that it is new or like new making it sometimes faster or more efficient, cost of having when you really do not need it and cost of capital (money).
  15. MatthewG

    MatthewG PlowSite.com Addict
    Messages: 1,400

    I don't have much need for a 2nd machine in the spring/summer/fall, so id rather not buy another. My A300 runs weekly and that is just fine with me.

    I need another bigger machine for a BX10 pusher, my only other option is my friends takeuchi TL250(the biggest one) Its a tracked machine, halfway worn tracks , about 12K Lbs.

    ID offer him say $700 a month or, perhaps a per hour used basis, It would be for 3.5 - 4 months Dec 1 - April 1

    There is nothing left to rent around here
  16. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    Check Cat.. Lots good deals..

    I'm about to start pricing for a large tall wheel loader that we can drive to sites
  17. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,931

    interesting.. Matthew are you sure that wasn't some form of 3 month lease? not a rental? We've rented and bought a lot from jesco JD in the past 5 years. And ive NEVER had a rental for any skid steer that cheap. Theyre $300 a day or even their custom tiered winter rates per month are usually $1800+
    I know of the local bobcat dealer in nj and their rates are fairly similar or slightly more than my rate from the JD dealer. If you've never rented anything from them before, the rate here would be more than i'd pay. I've paid as much as $1950/mo for a couple or few months before... as most our purchases were new machines rented by us then purchased after the season.

    I know a 244j, now a 244k is $2800/mo, 310K backhoe are about $3400/mo, 524k loader is $4800~ month or $2250 on a 24 month lease, so leasing for 1-2 years with lower hour limits helps cut rental rates monthly in half basically.

    What dealer do you rent from? maybe i need to come out your way!
  18. SnowMatic

    SnowMatic Member
    from USA
    Messages: 57

    I feel the same as some when it comes to renting specially if its for a few months every year (4 months or so every year during snow season) I feel like im throwing away money by renting. Its guaranteed those seasonal rental rates this year are only going to increase down the road.

    on the other hand some of us will have limited hours of use or no use in other months so to buy seems foolish. But the length of time that you may own that machine may justify owing it, depending on the cost of the machine and the rental rates in the future.

    So I guess my Question is to those who have bought their skid steers.
    How long do you keep your machines, do you go by years or by hours before getting a new one.?
    Last edited: Nov 3, 2015
  19. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,931

    I know guys who buy used and new, but no one, including myself, that actually have new or used units that had enough hours to get to the point that we need to "replace" it. my highest hour skid/track JD only has a hair over 600hrs, a 2010 319D, the rest are 400, 300, 250, 200, 200, 175, 150hrs still. Worst of winters, we only put maybe 100hrs on them.
  20. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,771

    100 hrs of use in a bad winter? That seems low to me but this is our first winter leasing skids so I don't know.