Introduction
Investing in high reach excavators can seem daunting given the high costs involved. However, with some research and planning, you can acquire a fantastic high reach excavator without breaking the bank. This guide will walk you through the key considerations when looking to minimize spending on your high reach excavator purchase.
What Are High Reach Excavators?
First, let’s clearly define what high reach excavators are. High reach excavators, sometimes called long reach excavators, refer to excavation equipment that allows for digging and moving materials at heights beyond the capability of standard excavators.
Key features:
- Extended booms and arms for increased vertical reach
- Capabilities between 50-100 feet or more
- Advanced designs for stability and precision
- Ideal for demolition, mining, river dredging and more
With extended reach capabilities, these versatile machines allow operators to complete an array of tasks from a distance with reduced site footprint and disturbance.
Consider Buying Used Machinery
The first tip to minimize spending on a high reach excavator is to buy used. High reach excavators are premium specialty machinery, with new units ranging from $800,000 up to $3 million or more. Considering most equipment depreciates around 50% over 5 years, purchasing a 3-5 year old used model can provide huge cost savings.
When browsing used inventory, pay attention to factors like:
- Hours of use
- Overall condition
- Service and repair history
- Required repairs or refurbishments
- Available warranty coverage
Aim for less than 10,000 hours for a used model less than 10 years old. Be prepared to invest $10,000-50,000 on repairs and refurbishments for older used models. Thoroughly vet sellers, dealers and financing options to find the best valued used machine.
Secure Low Interest Financing
Given the high price tags, financing will likely be necessary to purchase a high reach excavator. To get fantastic rates:
Check your credit. A score over 700 will be ideal for the lowest rates. If needed, take measures to improve your score prior to applying for a loan.
Research lenders. Look into financing options from various equipment dealers, banks, credit unions, and online lenders. Compare factors like:
- Interest rates
- Loan terms
- Fees
- Loan amounts
Ask about special programs. Many dealers and manufacturers offer special financing promotions that can lower costs. These may include no interest for 6-12 months or reduced pricing on loans over $100k.
Consider leasing. Leasing usually comes with lower monthly payments compared to loans, in exchange for not owning the asset outright during the lease term.
Take Advantage of Tax Incentives
Don’t overlook lucrative tax deductions and credits that may be available:
- Section 179 deduction – Business owners can fully deduct up to $1 million in equipment purchases like excavators in the first year. This can provide huge savings compared to depreciating the cost over 5-7 years.
- Bonus depreciation – Allows businesses to quickly deduct a percentage of newly purchased equipment. The federal bonus rate is currently 100%.
- Electric vehicle tax credit – Purchasing an electric or hybrid high reach excavator may qualify you for a federal tax credit up to 30% of the cost.
Consult your accountant to utilize relevant federal, state, and local incentives that put cash back in your pocket. The tax savings can make acquiring a fantastically priced machine much more feasible.
Attach the Right Tools and Accessories
Excavators themselves represent a significant investment, so also consider attachment costs. Here’s a look at popular high reach excavator attachments and average pricing:
| Attachment | Description | Average Price |
|---|---|---|
| Demolition Shears | Powerfully cut through metal, concrete, wood | $8,000 – $30,000 |
| Hydraulic Hammers | Break apart extra hard material like granite | $9,000 – $50,000 |
| Thumbs | Help grip and move objects | $3,000 – $7,000 |
| Buckets | Scoop and move loose material | $500 – $2,000 |
Prioritize acquiring attachments suited for your planned tasks. Buying all tools upfront is unnecessary and highly cost prohibitive. Consider purchasing used attachments or renting extra equipment periodically.
Conclusion & FAQ
Following used equipment listings, securing low rate financing, capitalizing on tax deductions, and strategically acquiring attachments can all help minimize spending on a high reach excavator. At the same time, you don’t need sacrifice quality or capabilities.
FAQ
Q: What are typical annual maintenance costs for a high reach excavator?
A: Expect to budget around 2-3% of the purchase price for annual maintenance costs. Proper care and maintenance will maximize uptime.
Q: What safety risks should I consider with high reach excavators?
A: Risks include rollover, objects falling from heights, and boom collapse. Follow all safety procedures and equip machines with protective guarding.
Q: Can an inexperienced operator utilize a high reach excavator?
A: Proper operator training is highly recommended given the skill needed to control these advanced machines. Most manufacturers offer training programs. Consider having an experienced operator train new hires.
