Buying a new excavator is a significant undertaking, comparable to purchasing a house rather than a car, due to the substantial investment and numerous factors involved. To ensure you select the right machine for your specific needs, thorough research and careful consideration of all options are essential. Yancey, with over 100 years of experience in the heavy equipment business, provides a comprehensive guide to help navigate this process smoothly.
Here’s a step-by-step approach to buying an excavator:
1. Determine Your Needs
This is the foundational step. Clearly define:
- Size of Excavation Projects: Will you be tackling small residential jobs or large-scale commercial developments?
- Type of Terrain: Is your primary work on rough, uneven ground, or smooth, hard surfaces?
- Tracks (Crawler Excavators): Ideal for rough terrain, offering stability and better weight distribution on soft ground.
- Wheels (Wheeled Excavators): More efficient for smooth or hard surfaces like pavement, offering greater speed and maneuverability between job sites.
- Maneuverability Requirements: Do you need to operate in confined spaces (consider short-tail swing or lower-profile models)?
- Weight and Speed Capacity: Match the machine’s power and weight to the most demanding tasks, considering breakout force, reach, digging depth, and lifting capacity.
2. Set a Budget
Beyond the initial purchase price, a comprehensive budget must account for the overall cost of ownership, which includes:
- Maintenance: Routine maintenance can range from $1,000 to $2,000 per year for standard servicing. However, annual maintenance and repair costs can be estimated at around 15% of the machine’s purchase price.
- For a $100,000 excavator, expect to budget around $15,000 yearly for upkeep.
- Specific repairs can vary: Hydraulic repairs ($800-$2,500), engine overhaul ($8,000-$20,000), undercarriage repairs ($5,000-$15,000).
- Repairs: Unforeseen repairs can be substantial.
- Fuel: A large excavator consuming 15 gallons per hour could cost tens of thousands annually in fuel alone.
- Insurance: Premiums can range from $1,500 to $5,000 annually for standard coverage, depending on machine value, usage, and job site risks.
- Operator Costs: Skilled operators are a significant part of the operational budget.
- Depreciation: Factor in the machine’s depreciation over time.
Companies like Yancey offer customer value agreements (CVAs) to provide streamlined maintenance solutions at a flat fee, helping to simplify budgeting for ongoing care.
3. Test Drive the Excavator
Just as you would with a car or a house, personally test the excavator’s performance and feel. You’ll be spending a significant amount of time operating it, so ensure it performs well in real-world conditions and feels comfortable in daily use, not just on paper.
4. Understand Your Warranty Options
Warranties vary by model and circumstances. Based on your anticipated job types, choose a warranty that offers the best coverage. Standard warranties typically provide 6-12 months of coverage, but for long-term protection, consider Equipment Protection Plans (EPP) or Extended Service Coverage (ESC). Options might include powertrain, hydraulics, or premier coverage, tailored to your specific needs.
5. Understand Your Financing Options
Most significant investments require financing. Reputable dealers like Yancey can guide you through the financing process, offering various finance options and affordability calculators to help with smart budgeting.
6. Review Features and Attachments
Excavators are highly versatile due to their ability to utilize a wide range of attachments. Modern machines are also more efficient due to advanced technology. Review all available attachment and technology options to maximize the machine’s utility for your operations. Common attachments include:
- Augers, Breaker-Hammers, Buckets (with or without thumbs), Vibratory Compactors, Couplers, Crusher-Screeners, Demolition Tools, Drum Cutters, Forestry Tools, Grapples, Magnets, Mulchers, Pile Drivers, and Rock Saws.
7. Explore New, Used, or Rental Options
Each option presents different costs and benefits:
- New: Latest technology, full warranty, but highest initial cost.
- Used: Lower upfront cost, but requires thorough inspection and potential for higher maintenance needs.
- Rental: Excellent for evaluating models before buying, for short-term projects, or to avoid ownership costs and responsibilities. Rental prices vary by machine size, local demand, and competition (e.g., mid-size crawler excavators can range from $800-$1,500 daily to $5,200-$7,000 monthly).
8. Consider Your Maintenance Needs
Be realistic about the ongoing maintenance an excavator requires. The machine and its components demand careful attention throughout their lifecycle. Dealers like Yancey offer comprehensive and personalized customer value agreements to manage regular maintenance for a flat fee.
9. Consider the Insurance Coverage You Need
Beyond standard commercial auto insurance, you’ll likely need specialized coverage:
- General Liability Coverage: To cover potential damages or injuries caused during operation.
- Tools & Equipment Coverage (Inland Marine Insurance): Protects your investment against loss, damage, or theft of the excavator and its attachments, especially when transported or stored off-site. This can also be called Contractors Equipment Insurance.
- Equipment Breakdown Insurance: Covers the cost of repairing electrical or mechanical equipment failures.
- Business Interruption Insurance: Compensates for lost time due to equipment damage.
10. Purchase High-Quality Equipment
Investing in high-quality equipment, such as Cat equipment from authorized dealers like Yancey (the nation’s oldest Caterpillar dealer), ensures durability and reliability. Cat products are known for their longevity and robust construction, built to last down to the smallest component, providing excellent value for your money.
11. Understand Your Resale Value
High-quality equipment, like Cat, typically boasts a strong resale value. This is an important factor to consider in your initial purchase decision, as it can significantly impact your long-term financial planning if you decide to upgrade or sell the machine in the future.
12. Know Your After-Sale Support Options
Ensure you have a plan for service and parts. Caterpillar has an extensive network of over 50 authorized dealers and service centers across the United States, providing access to parts and services wherever your job takes you.
By following this comprehensive guide and leveraging the expertise of established dealers like Yancey, you can confidently navigate the process of investing in the perfect excavator for your needs.