How to Buy and Finance an Excavator

Purchasing an excavator is a major financial commitment, so it’s essential to familiarize yourself with the buying process and make a well-informed choice.  Below is a general guide to help you navigate buying and financing an excavator:

• Determine Your Needs: Before buying a excavator, you need to determine the type of excavator you need for your current and future projects. There are several types of excavators available, including crawler excavators, wheel excavators, dragline excavators, mini excavators and skid steer excavators. Each type of excavator has its own advantages and disadvantages, so it’s important to choose the one that is best suited for your short and long term needs.
  
  
• Choose an Excavator Dealer: Once you have determined the type of excavator you need, you should choose a reputable dealer. Look for a supplier that has experience in the industry and offers quality excavators. You can ask for referrals from other contractors or search online for reviews and ratings.
  
  
• Shop the Auctions: Purchasing a used excavator at an auction can be a more affordable option for those on a tight budget. However, it is important to thoroughly inspect the excavator before making a purchase to ensure it is in good working condition.  Depending on the age of the excavator, most lenders will finance excavators purchased at an auction house.

• Check the Excavator’s Condition: Before finalizing the purchase, it’s important to check the excavator’s condition thoroughly. You should inspect the excavator’s structural integrity, mechanical components, electrical system, and safety features. If possible, you should also test the excavator’s performance to ensure it’s in good working condition.
  
  
• Determine the Total Cost: In addition to the purchase price of the excavator, you should also consider the cost of transportation, installation, maintenance, and insurance. These costs can add up quickly, so it’s important to factor them into your budget.
  
  
• Choose a Financing Option: Once you have determined the total cost of the excavator, you should consider your excavator financing options. You can choose to pay for the excavator in cash, obtain a loan from a bank or financial institution, lease or rent the excavator.
  
  
• Cash Payment: If you have sufficient cash reserves, you may choose to pay for the excavator upfront. This option provides the advantage of avoiding interest payments and owning the excavator outright.
  
  
• Bank Loan: If you don’t have enough cash reserves, you may obtain a loan from a bank or financial institution. The loan amount and interest rate will depend on your credit score, business history, and collateral. You should compare the interest rates and terms of different lenders to choose the one that suits your needs.
  
  
• Lease: If you don’t want to commit to a long-term investment, you can choose to lease the excavator. Leasing provides the advantage of lower monthly payments and flexibility to upgrade or return the excavator at the end of the lease term. However, you won’t own the excavator at the end of the lease, unless the lease has end of term purchase options.
  
  
• Finalize the Purchase: Once you have chosen the financing option, you should finalize the purchase. You should review and sign the purchase agreement, financing agreement, and any other legal documents. You should also make the necessary payments and obtain the necessary permits and insurance.
  
  
• Maintenance and Operation: After buying your excavator, it’s important to maintain and operate it properly. You should follow the manufacturer’s recommendations for maintenance, hire qualified operators, and ensure the excavator is operated safely and efficiently. This will help prolong the lifespan of the excavator and minimize downtime and repair costs.

Should I Buy a New or Used Excavator?

The decision to buy a new or used excavator depends on a variety of factors, including your budget, the purpose of the excavator, the expected usage, and the availability of financing.

If you have a higher budget and require a excavator with the latest technology, a new excavator may be the better option. New excavators often come with warranties and maintenance packages, which can give you peace of mind and ensure that the excavator operates reliably. Additionally, a new excavator can offer the latest safety features and meet the most current industry standards.

However, if your budget is more limited or you don’t need the latest technology, a used excavator could be a more cost-effective option. Used excavators are often significantly cheaper than new excavators, which can save you a lot of money upfront. Additionally, used excavators that have been well-maintained and inspected can still provide reliable and safe operation.

Ultimately, the decision to buy a new or used excavator will depend on your specific needs and circumstances. Before making a decision, you should thoroughly research the options available to you, consult with experts in the field, and weigh the pros and cons of each choice.

Popular Websites to Buy Excavators:

When purchasing an excavator, several websites offer a wide selection of new and used machinery. Here’s a list of some of the most popular websites to buy excavators:

•  MachineryTrader.com – One of the most comprehensive platforms for buying and selling construction equipment, including new and used excavators from various manufacturers.

•  RBAuction.com – Ritchie Bros is a global marketplace for heavy equipment, including excavators. Ritchie Bros. holds online and live auctions and has a massive inventory from top brands.

•  IronPlanet.com – IronPlanet specializes in used heavy equipment, offering detailed inspection reports, bidding options, and buy-it-now features for a wide range of excavators.

•  EquipmentTrader.com – Offers a marketplace for new and used heavy equipment, including excavators, with a focus on local listings.

•  CatUsed.cat.com – Caterpillar’s official used equipment website, featuring high-quality used excavators, often with warranty options.

•  MyLittleSalesman.com – A well-established marketplace for construction equipment with listings for new and used excavators from various dealers and private sellers.

•  Facebook.com/Marketplace – A leading marketplace for private party equipment sales.

Each of these websites offers different buying options, from direct purchases to auctions, providing flexibility for different needs and budgets.  It’s always a good idea to do your research and compare prices and features before making a purchase. Additionally, be sure to check the seller’s reputation and read customer reviews before making a purchase to ensure that you are getting a quality excavator.

Excavator Financing Options:

There are several financing options available for companies looking to purchase an excavator:

• Bank Loans: Traditional bank loans are a common financing option for purchasing an excavator. Banks typically offer competitive interest rates and repayment terms that can range from several months to several years.

• Equipment Financing: Some lenders specialize in providing financing for equipment purchases, including excavators. These lenders may offer more flexible repayment terms or better rates and terms compared to other financing options.

• Equipment Leasing: Leasing an excavator can be a cost-effective way to access the equipment without a large upfront investment. Leasing terms can range from short-term rentals to long-term leases, and some may include maintenance and repair services.

When considering financing options for an excavator purchase, it is important to carefully evaluate each option and compare interest rates, repayment terms, and any additional fees or charges. It may also be helpful to consult with a financial advisor or accountant to determine the best financing option for your specific situation.

This article first posted on September 29, 2024 on our home blog page here.

How to Buy and Finance a Crane

Buying a crane can be a significant investment, so it’s important to understand the process and make an informed decision. Here is a complete guide to buying and financing a crane:

1. Determine Your Needs: Before buying a crane, you need to determine the type of crane you need for your current and future projects. There are many types of cranes available, including tower cranes, mobile cranes, crawler cranes, and overhead cranes. Each type of crane has its own advantages and disadvantages, so it’s important to choose the one that is best suited for your short and long term needs.
   
   
2. Choose a Crane Supplier: Once you have determined the type of crane you need, you should choose a reputable supplier. Look for a supplier that has experience in the industry and offers quality cranes. You can ask for referrals from other contractors or search online for reviews and ratings.
   
   
3. Check the Crane’s Condition: Before finalizing the purchase, it’s important to check the crane’s condition thoroughly. You should inspect the crane’s structural integrity, mechanical components, electrical system, and safety features. If possible, you should also test the crane’s performance to ensure it’s in good working condition.
   
   
4. Determine the Total Cost: In addition to the purchase price of the crane, you should also consider the cost of transportation, installation, maintenance, and insurance. These costs can add up quickly, so it’s important to factor them into your budget.
   
   
5. Choose a Financing Option: Once you have determined the total cost of the crane, you should consider your crane financing options. You can choose to pay for the crane in cash, obtain a loan from a bank or financial institution, or lease the crane.
   
   
6. Cash Payment: If you have sufficient cash reserves, you may choose to pay for the crane upfront. This option provides the advantage of avoiding interest payments and owning the crane outright.
   
   
7. Bank Loan: If you don’t have enough cash reserves, you may obtain a loan from a bank or financial institution. The loan amount and interest rate will depend on your credit score, business history, and collateral. You should compare the interest rates and terms of different lenders to choose the one that suits your needs.
   
   
8. Lease: If you don’t want to commit to a long-term investment, you can choose to lease the crane. Leasing provides the advantage of lower monthly payments and flexibility to upgrade or return the crane at the end of the lease term. However, you won’t own the crane at the end of the lease, unless the lease has end of term purchase options.
   
   
9. Finalize the Purchase: Once you have chosen the financing option, you should finalize the purchase. You should review and sign the purchase agreement, financing agreement, and any other legal documents. You should also make the necessary payments and obtain the necessary permits and insurance.
   
   
10. Maintenance and Operation: After buying your crane, it’s important to maintain and operate it properly. You should follow the manufacturer’s recommendations for maintenance, hire qualified operators, and ensure the crane is operated safely and efficiently. This will help prolong the lifespan of the crane and minimize downtime and repair costs.

Should I Buy a New or Used Crane?

The decision to buy a new or used crane depends on a variety of factors, including your budget, the purpose of the crane, the expected usage, and the availability of financing.

If you have a higher budget and require a crane with the latest technology, a new crane may be the better option. New cranes often come with warranties and maintenance packages, which can give you peace of mind and ensure that the crane operates reliably. Additionally, a new crane can offer the latest safety features and meet the most current industry standards.

However, if your budget is more limited or you don’t need the latest technology, a used crane could be a more cost-effective option. Used cranes are often significantly cheaper than new cranes, which can save you a lot of money upfront. Additionally, used cranes that have been well-maintained and inspected can still provide reliable and safe operation.

Ultimately, the decision to buy a new or used crane will depend on your specific needs and circumstances. Before making a decision, you should thoroughly research the options available to you, consult with experts in the field, and weigh the pros and cons of each choice.

Popular Websites to Purchase a Crane:

There are several websites where you can purchase a crane. Here are some of the most popular:

1. CraneNetwork.com – This is a great website for buying and selling new and used cranes of all types. It has a vast inventory of cranes from trusted brands and sellers.
   
   
2. Bigge.com – Bigge Crane and Rigging Co. is one of the largest crane companies in the world, and their website is a great place to buy or rent a crane. They have an extensive inventory of cranes of all sizes and types.
   
   
3. Mascus.com – This is a global marketplace for heavy machinery, including cranes. You can find both new and used cranes from sellers all over the world.
   
   
4. IronPlanet.com – This is another website that sells both new and used cranes, as well as other heavy equipment. They offer auctions and fixed-price listings, so you can find the right crane at the right price.
   
   
5. EquipmentTrader.com – This website has a large inventory of cranes for sale from dealers and private sellers. You can search by type, brand, location, and other criteria to find the perfect crane for your needs.

It’s always a good idea to do your research and compare prices and features before making a purchase. Additionally, be sure to check the seller’s reputation and read customer reviews before making a purchase to ensure that you are getting a quality crane.

Crane Financing Options:

There are several financing options available for businesses looking to purchase a crane:

1. Bank loans: Traditional bank loans are a common financing option for purchasing a crane. Banks typically offer competitive interest rates and repayment terms that can range from several months to several years.
   
   
2. Equipment financing: Some lenders specialize in providing financing for equipment purchases, including cranes. These lenders may offer more flexible repayment terms or better rates and terms compared to other financing options.
   
   
3. Leasing: Leasing a crane can be a cost-effective way to access the equipment without a large upfront investment. Leasing terms can range from short-term rentals to long-term leases, and some may include maintenance and repair services.
   
   
4. Equipment auctions: Not really a financing option, but purchasing a used crane at an auction can be a more affordable option for those on a tight budget. However, it is important to thoroughly inspect the crane before making a purchase to ensure it is in good working condition.  Depending on the age of the crane, most lenders will finance cranes purchased at an auction house.

When considering financing options for a crane purchase, it is important to carefully evaluate each option and compare interest rates, repayment terms, and any additional fees or charges. It may also be helpful to consult with a financial advisor or accountant to determine the best financing option for your specific situation.

This article first posted on April 20, 2023 on our home blog page here.

Optimistic Future for Mining Industry

As analysts forecast the future for the mining industry, most are in agreement that the outlook is positive and the upward trends from the last two years will continue.

Improving but changing.

Both small mining companies and large corporate giants such as Rio Tinto, Freeport-McMoRan and Anglo-American reported solid earnings, increasing positive profit margins and improved cash flow for FY2018. This is a continuation of the trend we’ve seen over the last couple years where robust macroeconomic fundamentals, large reserves and deregulation under President Trump jump started the mining industry from its previous slump.

Although mining appears to be back, and healthy, the landscape is different than it was just a few decades ago. Now, mining companies are focused on copper, nickel, lead, tin and gold as opposed to traditional materials such as iron and coal; resources that have dipped due to political pressure to move to alternative sources of energy.

President Trump campaigned on the promise to save coal, and his administration has taken action over the past couple years to bring coal back from the dead, and his attempts have helped stabilize the demand for coal. Natural gas continues to increase in demand and be considered the bridge fuel as North America transitions to alternative energy sources. What that means for the coal market remains to be seen.

Mining equipment market experiences simultaneous growth.

The expected growing in the mining industry is also having an effect on the Mining Equipment Market. It wasn’t too long ago that the global mining equipment market size was valued at USD 120.82 billion; however, with analysts anticipating CAGR of 11.7%, the global mining equipment market is expected to jump to USD 284.93 billion by 2025 per Grand View Research.

As the mining industry forges ahead with its recovery, we are seeing companies both large and small position themselves to take advantage of future profits coming their way. Mining companies are purchasing new and used mining equipment and retrofitting their current fleets while they have the cash flow to do so. The recent improvements in the mining space is now attracting more capital and mining equipment finance companies are looking to deploy capital to help facilitate the continued mining industry recovery.

Positive yet cautious.

Although the mining industry in Canada and The United states appears to be trending up, mining companies are still cautious about the potential risks that always threaten their operations. Issues such as tension over water usage from local communities, political unrest that impacts their operations across the globe and the general public’s preference to move toward clean and renewable energy and sustainable business practices. These threats are always present, but if managed, we don’t anticipate they will negatively impact the projected recovery.

Mining in The United States and Canada is back for now.

Even though there are risks the mining industry will need to overcome over the next few years, the overall forecast for the industry looks positive. Improving on a recovery that started a few years ago, the mining industry and the mining equipment market will continue to see significant growth for at least the next year, and most likely experience multiple years of continued success.

*This article was originally posted on our Medium Blog here on June 1, 2019

Predictions for the Logging Industry 2018

Prices remain volatile, but new logging equipment purchases remain strong.  2017 saw higher prices for lumber across the entire industry. Experts predict that these high prices will continue through this year and the next, and some are concerned that these record-high prices could lead to a supply gap among exporters and importers. With the high-prices taken into consideration, the sales of new logging equipment are actually off to a strong start.

Let’s talk about the causes for this price volatility along with some predictions for the future of the logging industry in 2018.

The U.S. Department of Commerce’s Import Duties

Back in November 2017, the U.S. Department of Commerce decided to impose total countervailing duties (CVD) and anti-dumping duties (ADD) of 20.83% on Canada's lumber exports. This move shocked many; however, others saw it coming for a long time. Nevertheless, Canadian exporters swiftly raised their prices to counteract the move, resulting in higher prices for lumber across the board.

From the exporter to the importer, and ultimately to the consumer, everyone is shelling out much more for lumber this year. To counteract these higher prices, U.S. builders are now depending on a boost in U.S. domestic lumber production and European importers to avoid a potential supply gap.

The Future for U.S. Softwood

If import duties remain the same as many predict they will, industry analysts predict that by the end of the decade, there might not be enough available softwood lumber in North America to meet up with U.S. demand. Luckily, U.S. housing is starting to enter a slow period which cuts the demand substantially. To help avoid a potential supply problem, U.S. importers will need to start importing incremental supplies of lumber each year to keep up with growing demand over the next few years.

All of this being said, new logging equipment financing is off to a strong start in 2018. Industry-leading reporting firm, EDA, recently released financial data for February.

Most Successful Logging Equipment Lenders

1. JOHN DEERE INDL CREDIT                        78
2. CATERPILLAR FIN SVC CORP                      46
3. DE LAGE LANDEN FIN SVC                         25
4. WELLS FARGO VENDOR FIN SVC LLC          18
5. STEARNS BANK                                           15

John Deere continues to place first in equipment financing, as they sold substantially more than the other equipment financiers in the category. They sold equipment to companies across the U.S. using them for various purposes.

Top Equipment Buyers in February

• BLUE STAR EQT LLC DETROIT, MI                             10
• LOGGING EQUIPMENT BANDIT                                  5
• LOGGING EQUIPMENT MORBARK                             5
• TREESMITHS INC SPRING BROOK TWP, PA               5
• LOGGING EQUIPMENT ALTEC                                    5

In a separate report, EDA also disclosed the most popular equipment types sold in the U.S. at the end of 2017. Their findings are as follows:

EQUIPMENT TYPE                              BUYERS            UNITS

1. LOG LOADER                                41,547             89,621
2. SKIDDER                                      46,872             89,598
3. GRAPPLE SKIDDER                      24,636             60,225
4. CHIPPER                                      36,962             58,767
5. FELLER BUNCHER                       18,252             43,563
6. CRAWLR DOZER (LOG)                 20,806            38,263
7. STUMP CUTTER                           23,829             33,041
8. SAWMILL                                     19,883             25,644
9. WHEEL LDR (LOG)                        11,647             23,443
10. EXCAVATOR (LOG)                       10,087             23,435

Machine Tool Orders Are in Growth Mode

The total amount of machine tool orders has increased in October 2017 when compared to the previous month. In October alone, the market had 6.3% more machine tool sales when compared to September. This is a good accomplishment for the machine tool industry. It goes to show that there is huge growth and the market is constantly evolving and exploring new ways to help customers.

Machine tools are far from cheap, but they do offer a huge return on investment. That is why machine tool financing is still necessary. And while some companies rely on machine tool rental agreements, the reality is that financing machine tools remains the best option manufacturers can use to acquire this type of machinery.

And that’s not a bad thing. Most of the machine tools can make them a fortune, so getting the right machine tool financing options is an advantage, and one that they do not want to miss at all.

The best part here is that the machine tool sales in October reached $428.32 million, based on the USMTO, and that does say a lot. If you compare it with 2016, then the sales are 7.6% higher. But what managed to increase the amount of orders? Apparently, there was a huge demand for medical equipment orders. Also, contract machine shops continued to invest, hence the need for machine tools and machine tool financing. The aerospace orders declined for the month, but they had a record month in September. The off-road equipment industry also had a decline, but this is expected a bit, considering the winter was close and there’s always a small decline during that particular time.

Yet despite all of that, the machine tool industry is growing, and it continues to receive lots of capital equipment investment. Most clients for this industry tend to invest in various technologies to stay competitive. And, as you can imagine, they do rely on machine tools to eliminate the competition. That’s extremely important, and it does bring forward some great ideas in regards to the future of this business.

But it’s not only the machine tool industry that managed to grow in the past few months. It’s the US manufacturing economy in general that got to receive a lot of boost in this regard. There’s a strong consumer requirement here, and things like durable goods were ordered in very high amounts.

As you can imagine, machine tool manufacturers had to work extremely hard to cope with the demand. And even clients had a hard time identifying the best Machine Tool Financing options, but thankfully there are lots of options available on the market at this particular time. The thing to note about Machine Tool orders is that they are extremely distinct, and there’s certainly a lot of value to be had in here. But in the end, the most important thing is that the machine tool industry is growing, and this does have a positive impact on the US economy as a whole. 

Printing Equipment Industry 2018

More businesses are moving online. How will the commercial printing industry adapt?  For decades, the commercial printing has relied on the tried and true business staples of business cards, direct mail flyers, and newspapers to keep the industry profitable. However, these days more and more businesses are shifting almost all of their marketing attention to websites and social media. With this in mind, the industry has been facing many challenges to remain relevant all the while posting miniscule growth rates that signal stagnation for the once-booming industry.

Industry reporting experts, Idealliance, noted that the commercial industry as a whole grew by only 1.0% in 2017. While a sign of growth is appreciated after facing a sharp decline back in 2011, to keep up with the changing times and reclaim relevancy, growth must continue at an accelerated pace.

Who Financed Printing Equipment in 2017?

Insight specialists, EDA, recently updated their 2017 sales numbers from November. They compiled a list of the top lenders of print equipment of the month along with the units that they financed. Their list is as follows:

GENEVA CAPITAL                                      17
TCF EQT FIN INC                                      11
HEIDELBERG USA INC                              8
BOBST NORTH AMER INC                        5

Tied for 5th

CIT BANK                                                     4
KBA NORTH AMERICA                                4
PNC EQUIPMENT FINANCE                       4                     
MACDERMID PRINTING SOLUTIONS         4         
WELLS FARGO EQUIPMENT FINANCE        4

The top five (in this case ten since five tied for fifth place) accumulated enough sales for 65.6% of the total with the number one lender, Geneva Capital, taking 18.3% of the total by itself.

Who Was Buying the Equipment?

Marketing Instincts        California                 Epson         4
School of Visual Arts      New York                  Epson          3
GameTime Wraps           Arkansas                   HP               3
RR Donnelley & Sons     Delaware                  KBA              3
Quality Printing              Massachusetts         Ploar          2

Across the United States, buyers specializing in a variety of printing application were financing new printing equipment at acceptable rates. With new advancements in printing technology and more innovative applications, the industry could be ready for a long-awaited boom in 2018.

Increased Investment in 3D Printing

Industry reporting firm IDC predicts that in 2018, investment in 3D printing, specifically discrete manufacturing, will reach nearly $12 billion, which provides another opportunity for printing equipment finance companies. Discrete Manufacturing covers a variety of different sectors but is mostly focused on the production of specific items such as toys, automotive parts, and household goods. Also, many also see the rise of new medical-based printing technologies such as bioprinting organs and tissues and regenerative medicine as optimistic signs for the future.

Hopefully, these predictions hold true, and companies will increase their investment in these new printing technologies. If not, the industry as a whole could remain stagnant and lose its relevance as the world moves further down the digital path, leaving traditional printed materials behind. Referencing the Idealliance report mentioned earlier, they believe that with the new investment in these printing technologies, the commercial printing industry could grow by 1.5 to 3% in 2018.

We're still in the first quarter of 2018, so a lot remains to be seen if the predictions and forecasts from last year are accurate. With growing interest in the new technologies, financiers and buyers alike will have to change their business plans to adapt to the changing times.