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Leasing or buying used?

8648 Views 85 Replies 22 Participants Last post by  Kevin_NJ
My long time excavator sub is no longer plowing...too much dirt work and guys are shot after a night of plowing. He's not the only one, quite a few are getting out of it.

Ran some numbers for a lease machine and using some averages, we were getting off much cheaper using their loader and an operator.

Leased loader is brand new. All maintenance is included in the lease price as well as a 5 year warranty. But the number of hours on average per season, plus operator wages, fuel and insurance push the hourly rate higher than what we are charging. So if we have lower than average snow those costs go up, above average the costs go down except fuel and labor. They also figure about $13,000 in scheduled maintenance over the 5 years.

I also ran some numbers on the 244 I was leasing vs my Kubota M125X which has had some significant repairs. Even factoring the purchase price of the 'Bota, it still was cheaper. Different machines but it was the closest in price and capabilities.

Add to that, I'm old-fashioned and like to see some iron sitting in my yard that I own after paying a chunk of change.

So would you buy a used machine, with more potential for repairs and breakdowns but overall a lower hourly rate or lease one that will still sit for 7 months?
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I'm even more old fashioned than you. Almost never buy new and never lease.
I also like having subs, so they can deal with equipment.
Would it be possible to find a new sub? If it doesn't snow, you're not looking at a leased, or purchased piece of equipment not paying for itself.
I'm even more old fashioned than you. Almost never buy new and never lease.
I also like having subs, so they can deal with equipment.
Would it be possible to find a new sub? If it doesn't snow, you're not looking at a leased, or purchased piece of equipment not paying for itself.
We're checking, but most are already committed and the rest don't want anything to do with it anymore.

Seasonal contracts will cover the costs.

Snow is getting tough, finding operators or people that want to work the crappy, undependable hours. Just look at last year...nobody could depend on snow work for income.
We're checking, but most are already committed and the rest don't want anything to do with it anymore.

Seasonal contracts will cover the costs.

Snow is getting tough, finding operators or people that want to work the crappy, undependable hours. Just look at last year...nobody could depend on snow work for income.
I'm sure you've asked this question of others on PS; would you have other work for it if it doesn't snow?
With equipment you own, you also have the possibility if recouping some of that cost via selling (or trading) it when you’re done with it. The unknown, of course, is what the market is like when you decide to sell.
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Add to that, I'm old-fashioned and like to see some iron sitting in my yard that I own after paying a chunk of change.
We are going through the same thing right now with a tracked skid...for what we can pay on a 36 month lease we can own a fairly new low hour machine.
I'm sure you've asked this question of others on PS; would you have other work for it if it doesn't snow?
No, my 544 gets used a little here and there around the yard and the 244 is a great forklift. Bobcat is really the only thing that gets used a lot year round.
No, my 544 gets used a little here and there around the yard and the 244 is a great forklift. Bobcat is really the only thing that gets used a lot year round.
Is the lease machine equipped with a snorkel?
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Is the lease machine equipped with a snorkel?
Check your text...
Check your text...
Oh, I did...still laughing at the emoji.
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So would you buy a used machine, with more potential for repairs and breakdowns but overall a lower hourly rate or lease one that will still sit for 7 months?
neethur...instead, by all of Plow4beers **** And hire more seasonal help
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We're checking, but most are already committed and the rest don't want anything to do with me.
i buhleave it
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Leasing only makes sense if you have the cash flow to support it. And it seems that as time goes bye there appears to be less cash as overhead items like insurance continue to go up. The trick is to find units that are 10 to 15 years coming off leases with extremely low hours. But even then you tie up a tremendous pile of money on something that you use 10 percent of the time I think we are in for some interesting times in the near future once the businessmen realize that the economy has come to a halt. Nobody is in the stores buying things. I went for a MRI, there was no waiting in line, two of us patients , one administrator, 4 doctors, 4 technicians, 12 nurses and one receptionist. Thank god for covid funds to pay them. I think there will be a a whole new way of looking at snow removal priorities this winter
I commend you on looking into the lease versus buy accounting . It's just something you have to do every year
I'm pretty sure I know the answer, just wondering if I'm missing something.

Spent too much money this year already.
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The key is to find used equipment that has a record of maintenance, and is in good operating condition, without paying a premium for it. Use the instinct that you've inherited through your DNA - it comes in handy.

Truth is it takes time and patience (2 things I don't have enough of) to wait for the right piece. In other instances, some items retain their value so well that it actually makes economical sense to buy/lease new. What works for us has been equipment (usually with a 10+ year life expectancy) is purchased. Trucks are leased (unlimited mileage). A good truck will hang around long after the lease, those that have been difficult are generally liquidated soon after the lease is done.

I have also found that buying equipment just for snow doesn't always make sense at the time, but often the changes from year to year open new opportunities due to their availability in your fleet. We now have several pieces collecting dust all summer - and while it's not ideal, I don't loose sleep over it.
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Used tractor market may see an increase of inventory due the "Derecho" storm wiping oot a huge amount of Korn.
I leased a vehicle once and never again. Sure payments are cheaper but you have no equity at the end of it.
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I would sell all your Winter equipment and concentrate your resources on mowing only... Take the Winter off and sit back and watch your bird feeders... You should be able to then devote more time to PS also...
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Used tractor market may see an increase of inventory due the "Derecho" storm wiping oot a huge amount of Korn.
I leased a vehicle once and never again. Sure payments are cheaper but you have no equity at the end of it.
You're Dutch?

I have 2 tractors for plowing. After running the 244 a couple times I just don't like tractors for plowing. Driveway rigs yes, parking lots no.

Also like what the one guy in the driveway blower thread is doing, running a 6 Series Deere on his driveways...they're just that much more tractor.
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I would sell all your Winter equipment and concentrate your resources on mowing only... Take the Winter off and sit back and watch your bird feeders... You should be able to then devote more time to PS also...
You interested in buying it?

In all seriousness, that is a consideration especially with Bella.
You're Dutch?

I have 2 tractors for plowing. After running the 244 a couple times I just don't like tractors for plowing. Driveway rigs yes, parking lots no.

Also like what the one guy in the driveway blower thread is doing, running a 6 Series Deere on his driveways...they're just that much more tractor.
Nope... extended family did invade Holland a couple time last century...
Just like to see some return on my money.
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