Different views on purchasing equipment

emr

emr

Location
WI
This past spring we purchased a chip truck and chipper for our new company. We decided to pay more for some older equipment and have it totally reconditioned. I guess it worked out because we only had 2 minor issues with the chipper. We had a battery cable that we needed to replace and a hairline crack in the radiator. We had no problems what-so-ever with the truck. We decided that we would spend more money to hopefully get better quality and avoid down time since we dont have any other equipment to use as back ups. Now that we have a truck and a chipper, I am wondering if we buy another truck (or chipper) if we could buy something a little cheaper and risk dealing with repairs as they come up. The way I figure it is like this, say we could buy a reconditioned truck for $20k and have few issues, or we could buy a $6k truck and spend $2k to get it painted and maybe another $3k on repairs. So we would be $11k into it instead of $20k. By purchasing the cheaper truck, we could potentially still have $9000 to spend on repairs and down time to still end up ahead over buying the more expensive truck.

I guess my basic question is, assuming you buy used equipment, how do you look at it..... buy cheap and deal with more repairs or buy expensive and expect to have less problems?
 
Buy new and never deal with other people's problems. Maybe I've just had bad luck, but most of the used trucks/chippers/equipment that I've owned have had just enough problems to make me buy new. Not saying I didn't love some of my old stuff, I just got tired of dealing with repairs, downtime, and 'touchy' equipment. I know exactly where my stuff has been and what's been done to it, and I like that.

-Tom
 
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Buy new and never deal with other people's problems.

-Tom

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Exactly how I feel, but as a start up company, we didnt really have that option. Maybe when it comes time to add to our fleet we can buy new, but I doubt it.
 
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buy cheap and deal with more repairs or buy expensive and expect to have less problems?

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I don't think you should use this as a template, you should just identify your bottom dollar, and start looking for equipment. Prices and condition will run the entire gamut, I'm sure. You might get lucky and find a truck or chipper that's been babied for good $.

-Tom
 
That is kind of what we did with our initial purchases. We knew what we could afford and went looking. As it ended, we paid more money for older equipment but we felt comfortable with the quality. I guess maybe another way for me to phrase my question is: is reconditioned equipment a good way to go? Or are you paying more for the reconditioning process than its worth?

When we first purchased our equipment, I was not familiar enough with the equipment that we wanted to buy and I wanted to buy from a dealer so that we could go back to them with any problems. As I work with the bigger equipment and research more I think I would feel more comfortable purchasing from a private party. This should give us more options in the future.
 
Whenever you buy used, you will have hidden problems, whether a refurbished unit or plain used.

So far, except for our last chipper, we have bought used. In each case we have had some significant problems but none unanticipated and none hugely problematic.

That said, I am a tinkerer and I am always intimately familiar with my equipment and able to repair it myself.

To date I have yet to spend more than $3000 on small trucks (pickups to f-550's) and have never spent that much more on repairs over time.

My last two pickups I paid $2600 and $2250 respectively. The first one I bought in 2001 and replaced it with the current one in 2006

The first one was diesel and I put in a new radiator, starter, HP pump, injectors and glow plugs. All for under $1100. The second one is gas and I have only had to put a smog pump and catalytic converter on it.

It looks like I'll be replacing that truck next summer.

The math on that clearly outweighs the percieved benes of owning new.

I bought a 19 yard chip truck with 9 meter knuckle boom for $5500 several years ago and have put only $2000 into it for brake work.

The trade off is time versus dollars. And you have to know what you are looking for.

If you buy a new Pick up you are going to spend $300 to $600 a month for the loan plus any maintenance/repairs.

The truck will still break down, tho less frequently as a used one. Parts will still wear out.

You will have a loan that needs to be paid off and a vehicle that will be worth significantly less than you paid for it when you are done with it.

Alternatively for less than a third of that cost I can pay cash, owe nobody nothing, and even with repairs expected for a used vehicle, still be paying less than the $300 to $600 a month. If it dies, I owe nothing and when I'm done with it I can recover a greater percentage of my initial outlay.

Of course this kind of option only works if you are able to handle most of the maintenance and repairs in house and you are willing to risk time versus money.

Our trucks are work trucks and they do look the part. They are not sanford and son rattle traps but we don't fret about their "worked" appearance.

A "new" truck, while pretty, will either be showing work signs soon, or take a lot of time and resources to keep looking "pretty."

Anyhow, that's my two pennies worth!
 
Don't forget the hidden costs of down time if/when the truck breaks. It always seems to happen right before you go to the longest job of the month and makes the day go into the night or prevents you from finishing. Then you also have to reschedule other jobs, pi$$ clients off, etc.

If the second truck is a backup, fine, but if you plan on using it daily, I say spend now to save later.
 
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Don't forget the hidden costs of down time if/when the truck breaks. It always seems to happen right before you go to the longest job of the month and makes the day go into the night or prevents you from finishing. Then you also have to reschedule other jobs, pi$$ clients off, etc.

If the second truck is a backup, fine, but if you plan on using it daily, I say spend now to save later.

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Yes, I agree! Opportunity costs are real costs.
 
A very expensive lesson that I have learned is down time. I am not a mechanic. I have never been able to find enough tools. I have to throw three wrenches before I can turn one. A used "back up" I think is a great Idea but in my experience buying used includes luck or kharma, sometimes good and sometimes bad.
 
Thanks for all of the responses so far. Please keep them coming. I am really starting to hope that we are doing well enough to buy new next time... still doubt it though.

On a related topic. What does everyone think about getting trucks from the big companies? I know many people don't like used Asplundh trucks. The place were we bought our truck and chipper said that they don't usually deal in used Asplundh trucks because it takes so much more work to get them in good condition. But what about old Davey, Wright, Lewis, etc? Are there any large companies out there the regularly sell their trucks and they are not beaten to death?
 
I had a good experience with them. I have tried to work with them since '04 but just haven't been able to due to timing and distance. I was much more pleased with them than Nueco and would definitly deal with schmidy before dealing with them again.
 
I have had my share of both used and new!!and semi-used! Remember the real key here is whatever route you go as long as you are accounting for all of your costs wether they be repair costs or truck payments you will be fine!! both are figured into the cost of doing biz!
i have an 05 altec that I bought new.....and an 86 gmc w an ariel lift...both work .....the older one requires more coddling!
 
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