Used chipper shopping

I agree that @evo is right on the math would be cheaper to finance than rent...but that doesn't account for risk. Personally, I'd table the idea of financing to see if you can find the "right" used option. Come back around to the idea if not.
 
You being a diesel mechanic may change the math a bit in favor of used if it’s a decent machine. I’m a total convert to financing new after growing up and starting business with used gear. Spending $30k cash on used (if that was your budget?) vs ~$1500/mo new under warranty and having liquid funds in the bank/mattress account.
 
Pursue financing options while shopping new and used.




Also, new means assembled, but not field-tested.

It took me part of a day to find the weak weld on my new hydraulic cylinder on my new machine, which then developed a frame crack from a manufacturing defect.

I'd rather have new.

Consider your dealer support for warranty work, etc.
 
You being a diesel mechanic may change the math a bit in favor of used if it’s a decent machine. I’m a total convert to financing new after growing up and starting business with used gear. Spending $30k cash on used (if that was your budget?) vs ~$1500/mo new under warranty and having liquid funds in the bank/mattress account.
That's what gets me hung up. I know I can fix things and maintain things but that will come at the cost of operation time. Likewise, buying new is a huge investment and I'm not sure I can bite that bullet yet (at least until I'm able to finance solely with the company).

Probably just a waiting game. Wait for the right opportunity to come up and jump on it. There's a couple within 7 hours but that's a hell of a drive to see if it's just good pictures. Haha.
 
Pursue financing options while shopping new and used.




Also, new means assembled, but not field-tested.

It took me part of a day to find the weak weld on my new hydraulic cylinder on my new machine, which then developed a frame crack from a manufacturing defect.

I'd rather have new.

Consider your dealer support for warranty work, etc.
Yeah unfortunately things can be wrong from the factory.

How much better do new chippers run vs 15-20 year old chippers? I've used a lot of old equipment.
 
Was it on marketplace? I'll have to check. I'm kind of stupid at using Facebook, still learning marketplace.

There was a decent 12" that I missed the boat on. Late 90s eager beaver for 4500, had maintenance records and everything. I was bummed.
It was at a barn sale. I’m sure it did not sell but if you really are interested I can see if I can get you some pics. But my gut says steer clear. Too old.
 
That's what gets me hung up. I know I can fix things and maintain things but that will come at the cost of operation time. Likewise, buying new is a huge investment and I'm not sure I can bite that bullet yet (at least until I'm able to finance solely with the company).

Probably just a waiting game. Wait for the right opportunity to come up and jump on it. There's a couple within 7 hours but that's a hell of a drive to see if it's just good pictures. Haha.
Exactly. The clutch blew on my old chipper, simple fix and a cheap part. I considered the down time, shipping of the part etc. bought a brand new clutch plugged it in and went back to work. The down time would have cost me more than the new clutch
 
Exactly. The clutch blew on my old chipper, simple fix and a cheap part. I considered the down time, shipping of the part etc. bought a brand new clutch plugged it in and went back to work. The down time would have cost me more than the new clutch
This is becoming more prevalent in the age of waiting for parts. Even OEM shops have a hard time getting stuff. If it's something the manufacturer has to make then it could be quite a while to wait on it.
 
Yes it's between 150 and 400 per use, so like 1500-4000 a month. It's a lot.

The problem is we are still a new company. I have a house and stuff and overloading my personal credit isn't a great option. What's a new machine cost? Like 70-100?
Omg. That is far too much my friend.
I love the Carlton 1290, that’s a great 9”. I think it retails 30k now, give them a ring.

(It will depend on credit of course but making payments on a 20k loan I’m payments of about $400 a month)
 
My 15xp 6.2 gas bells and whistles was $63k in 4/21 (diesel was $75k), a TB post this year referenced ~$90k for diesel 15xp.
That's what I was seeing on treetrader. There's not much out there for new pricing. Looks like you pretty well have to get a price from the manufacturer.
Gas looks a bit cheaper.
It does look like I could get into a new 12" for around $50k.

Does anyone have experience with getting a business loan your first year of operations? I'm still building my business plan and getting what little financial documents I have together. If I sell this 35k project to the city I'll be sitting pretty, need to wait until the okay from them to jump.
 
That's what I was seeing on treetrader. There's not much out there for new pricing. Looks like you pretty well have to get a price from the manufacturer.
Gas looks a bit cheaper.
It does look like I could get into a new 12" for around $50k.

Does anyone have experience with getting a business loan your first year of operations? I'm still building my business plan and getting what little financial documents I have together. If I sell this 35k project to the city I'll be sitting pretty, need to wait until the okay from them to jump.
Don’t sleep on a business line of credit at the bank/credit union you have your business account set up at. It was helpful my first year. When I set mine up they did use my personal credit score to set the limit because it was a new business but it avoided me having to “co-sign” personally. Now this was several years ago and at a credit union so don’t take that as gospel at your institution of choice but might be worth a shot. The guy I first started doing tree work with bought many pieces of equipment that way.
 
Don’t sleep on a business line of credit at the bank/credit union you have your business account set up at. It was helpful my first year. When I set mine up they did use my personal credit score to set the limit because it was a new business but it avoided me having to “co-sign” personally. Now this was several years ago and at a credit union so don’t take that as gospel at your institution of choice but might be worth a shot. The guy I first started doing tree work with bought many pieces of equipment that way.
So not a credit card but a personal loan sort of thing? That's good advice. I thought when I got my business credit card that it would reflect on my personal credit but it doesn't seem to have shown up. I have a great relationship with my banker, that may be the ticket. Thank you for that advice!
 
So not a credit card but a personal loan sort of thing? That's good advice. I thought when I got my business credit card that it would reflect on my personal credit but it doesn't seem to have shown up. I have a great relationship with my banker, that may be the ticket. Thank you for that advice!
It’s like a credit card without the card. Similar simple interest rate. It’s a great way for a new business to help establish good credit. I’m not sure what your limit would end up being but it’s worth a shot.
 
It’s like a credit card without the card. Similar simple interest rate. It’s a great way for a new business to help establish good credit. I’m not sure what your limit would end up being but it’s worth a shot.
That is totally worth a shot. It's at least worth talking to her about. My credit union is solid and has been very helpful. I'll check it out. It may give the flexibility to get into a lower hours model without hurting my home life.
 
Just saw a morbark ad 0 down and first few pay $66 per mo for the first few months. 6.6% interest.
I hear you on not wanting to tie up personal credit. The sooner you do it, the quicker you will develop business credit.
I’d imagine in your location you could have some opportunities for factory refurbished, and trade ins.
 
Just saw a morbark ad 0 down and first few pay $66 per mo for the first few months. 6.6% interest.
I hear you on not wanting to tie up personal credit. The sooner you do it, the quicker you will develop business credit.
I’d imagine in your location you could have some opportunities for factory refurbished, and trade ins.
I was going to suggest that you'll almost always get w better rate through the dealer on new equipment - especially as a new business...

I'm gonna guess a business line of credit is going to be a few points more than 6.6% and it will most likely have an annual fee to go with it. It's one thing to get started with that, but it will eat your lunch if you start operating on credit all the time. Plenty of businesses do...but it cuts into profitability.
 
I was going to suggest that you'll almost always get w better rate through the dealer on new equipment - especially as a new business...

I'm gonna guess a business line of credit is going to be a few points more than 6.6% and it will most likely have an annual fee to go with it. It's one thing to get started with that, but it will eat your lunch if you start operating on credit all the time. Plenty of businesses do...but it cuts into profitability.
Especially when we're new. All of the sudden it takes the fun out of it. Haha. Patience will be key. Fingers crossed for this city project. Haha
 

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