Buying brand new equipment

[Kemper]

Anyone here care to share their experiences with buying brand new equipment from say JD or Tigercat? I wonder what the payments are and the interest, things like that. I don't plan on doing this, but would like to dream. Thanks.

[woodmills1]

most of my stuff I bought used
The blue ox log triler I did buy new, it was near $29,000.  I got a loan quote at near 12% and that wasn't happening.  I went to my bank and they wanted 10%, so I talked my sister in law into loaning me the money at 8.5%

I payed it off in 40 months and it has been earning me money since the day I bought it

I borrowed nearly 22 grand to buy my 4500 chevy, paid 45,000 got 20,000 for my one ton and put the rest in cash.  I made double payments every month I could and paid it off in 33 payments

If you make money with stuff you buy and make extra principle payments you can do new or nearly new stuff

[saxon0364]

Ive never bought a new skidder.  Mine have always been very used.   Always thought about a new or nearly new one but never even looked into it. So Im curious about this as well.    Ive heard horror stories about loggers buying a new machine with $6,000.00 monthly payments. But that cant be true,,can it?   A couple rainy months and you'd be in trouble.

[CTL logger]

I've never been a fan of new logging equipment or pickup trucks. Only new I've bought in past were log trucks they are pretty worn out when bought used. I bought my 430 used with 1500 hrs saved 100k it was less than a year old, put a used head from burnt machine on it saved a lot on total machine. I only bought the new Timberpro because I couldn't trade my cat for a used one, well I could of if I gave it to them. I don't have payments that a 6000 either. I like buying late model used let someone else take the hit on it.

[sjfarkas]

I bought my bobcat used from a dealer. Financed $60k for 6 years=$1k/month.  So I could imagine a $6k/month payment for 1 machine. 

[treefarmer87]

the new stuff is $$$, I don't know how you could pay for it ??? I know a few that hace new deere and cats payments are $4000+ a month and that just one machine smiley_whacko

[thenorthman]

the new stuff is $$$, I don't know how you could pay for it ??? I know a few that hace new deere and cats payments are $4000+ a month and that just one machine smiley_whacko

Odins blind Eye, I Bought my skidder outrite for a little more than one payment... and it runs great...

How do these guys plan on paying for this stuff? what with fuel and labor, its knuts I tell ya

[treefarmer87]

yep, diesel across the street at the store was $3.99/gal, it dropped down to $3.86/gal this morning. 

[SwampDonkey]

A lot of the guys up here buying new are working on company and crown land. They don't have to chase timber. The company boss, says we're going here next and the equipment is moved from one site that evening to the next, already to roll. That's how they afford new, and even then it's slim because the rates on harvesting are kept pretty slim. When you can cut 100 acres in 4 or 5 days at an average of 24 cord/acre, your going through some wood.

[jd540b]

yep, diesel across the street at the store was $3.99/gal, it dropped down to $3.86/gal this morning.

Diesel was $4.25 here this week......crazy.

[PAFaller]

I have friends with a mechanized tree length setup working with a clean chip producer and they update every 3-4 years with brand new iron. They are in a similar boat as CTL Logger. They have steady work, and are making good money doing it. The hard part is building your business to the point where you can land some good contracts, buy stumpage on your own for reasonable prices, and by being as big as they are they move volumes and can demand a bit more money from the paper mills when they want fiber. But for a lot of big operators its not that the machines are wore out, its that the tax code requires you keep updating and taking write-offs. For an outfit like them it makes sense to buy new, run 3 or 4 years, trade in while the machine still has a decent resale value, and get into new stuff that should be more reliable. That said, Im not sure a small 1 or 2 man crew could justify buying a brand new machine and make payments in todays uncertain economy.

[coxy]

diesel  is 445 per gal here its nuts but have to work just to pay for that ;D

[Dom]

A lot of the guys up here buying new are working on company and crown land. They don't have to chase timber. The company boss, says we're going here next and the equipment is moved from one site that evening to the next, already to roll. That's how they afford new, and even then it's slim because the rates on harvesting are kept pretty slim. When you can cut 100 acres in 4 or 5 days at an average of 24 cord/acre, your going through some wood.

Very true. Also Irving would finance your machine, but they would mandate what equipment you buy and the rates as you mentioned.