Actual Cost of Equipment

Gareth's Tree

Active Member
I don't if you guys are looking to purchase any equipment anytime soon, but Case just posted up a great calculator to help figure out the actual cost of ownership. Includes numbers like fuel burn, cost of labor, depreciation and interest on your loan. It's really helpful http://tco.casece.com/en_us/excavators/cx130d
Seems handy, and fun to see what numbers it spits out. Hmmm... I must live a boring life...:)
 

ROYCE

Well-Known Member
Nice calculator. How can determine my annual maintenance cost for my piece of equipment?
I have found that with used equipment the cost of doing maintenance and added repairs to be around 5-7% of the cost of the equipment. Now, this can change if you have a late break down.
I bought my log truck for 45,000. So I budget approx. 3K a year for maintenance on this piece of equipment. Now, that is in my market and covers oil changes, fuel filter, a couple new tires a year etc. However, I negotiated into the original axing price all new tires, so I could keep my maintenance budget at the 5-7%.
First year I spent less than budget. I saved that and used the surpluss in the second year when I needed to fix the hood that got bent on a tree. So, its help pretty true for me.
 

dmorse68

Member
I have found that with used equipment the cost of doing maintenance and added repairs to be around 5-7% of the cost of the equipment. Now, this can change if you have a late break down.
I bought my log truck for 45,000. So I budget approx. 3K a year for maintenance on this piece of equipment. Now, that is in my market and covers oil changes, fuel filter, a couple new tires a year etc. However, I negotiated into the original axing price all new tires, so I could keep my maintenance budget at the 5-7%.
First year I spent less than budget. I saved that and used the surpluss in the second year when I needed to fix the hood that got bent on a tree. So, its help pretty true for me.
Great info. Thank you Royce. Now if I can be as smart as you and stash away a little slush fund if these first couple if years while the piece is new.

Got a question: would that maintenance cost of 5-7% be annual maintenance cost, or is it the total maintenance cost over the life ofor that particular piece of equipment?
 

ROYCE

Well-Known Member
Great info. Thank you Royce. Now if I can be as smart as you and stash away a little slush fund if these first couple if years while the piece is new.

Got a question: would that maintenance cost of 5-7% be annual maintenance cost, or is it the total maintenance cost over the life ofor that particular piece of equipment?
The maintenance cost is 5-7% yearly. Again just a basis for budgeting concerns. This could also be different for other companies in other parts of the region.
I take the cost of all my equipment and added it up the first of this year. Lets say for sake of conversation it added up to 200K. That would be what I paid for all my equipment. I then take 7% of that number...so 7% of 200K is 14K dollars. That is what I had set aside for maintenance. That is not really repairs. Just general service issue. Now, if I get to the end of the year and their is money left in this account...its gets transferred to the repairs account. So the idea is....the better I take care of the equipment with maintenance then the more money that will be left over to transfer to the repairs account. Or more importantly money that will not have to come out of the repairs account.
Now, if I do not have any major repairs for the year...or two years...Then that is money that could be used for a down payment on another piece of equipment.
So, as my business continues on and if I keep a close eye on this....every few years I can look at what piece of equipment is costing the most in repairs and maintenance...can we upgrade that to lower those costs?
I hope this all makes sense. Again, this is just something I have worked up with a business coach of mine.
 

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