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Buying Equipment For Excavating Company

 
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Old 01-03-2019, 12:50 PM   #1
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Buying Equipment For Excavating Company


As some of you saw on my introduction I am starting an excavating business in the Denver, CO area. I have plenty experience running jobs from 500k to 10million but never ventured on my own. I am starting with a decent amount of capital (60-100k).

My question is would it be beneficial for me to buy a used excavator and start working or should I rent everything? For the most part it seems like I will have plenty of work and since I want to focus on underground utility and general excavation I'm trying to see if it will be worth it or too risky.

Thanks in advance for the suggestions and comments.

I'm looking at getting a 35k-60k machine
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Old 01-03-2019, 06:07 PM   #2
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Re: Buying Equipment For Excavating Company


maybe lease a machine(s).

if they don't respond here get a hold of:

dayexco

or

tgeb

both experienced dirt guys and long time members...

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Old 01-03-2019, 08:38 PM   #3
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Re: Buying Equipment For Excavating Company


Do you have any contracts lined up as yet?

I'd say your safest route would be to rent or lease short term until you feel established and have work in the pipeline. You're better off keeping your cash in the bank and use it for operating capital. Price the rent or lease into your projects.

I see lots of contractors doing commercial foundation work and every piece of machinery is a rental.

What area of the excavation world do you think you'll specialize in?
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Old 01-03-2019, 10:41 PM   #4
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Re: Buying Equipment For Excavating Company


Thanks for the response.

I'm expecting to specialize in drainage and underground utility. General structure excavation will also be a good part. Was hoping to get one machine and rent the rest as I expand or grow.

Would rent to purchase be a decent way to go?
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Old 01-05-2019, 11:06 AM   #5
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Re: Buying Equipment For Excavating Company


Quote:
Originally Posted by VMadera View Post

Would rent to purchase be a decent way to go?
carve in stone what percentage of lease payment goes towards purchase should you convert to that.
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Old 01-07-2019, 10:18 PM   #6
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Re: Buying Equipment For Excavating Company


Own a 5 ton mini (or whatever you think you will run the most hours per year) and rent anything else needed as you get started.
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Old 01-08-2019, 07:11 PM   #7
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Re: Buying Equipment For Excavating Company


Thanks for the suggestions, seems like everyone wouldn't buy a piece of equipment right off the bat. I'll look into leasing or renting.
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Old 01-29-2019, 11:35 AM   #8
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Re: Buying Equipment For Excavating Company


When I started back in the 70’s I leased a new backhoe with the option to buy. I think 90% of my lease money went towards the purchase price Purchase price was determined before I signed the lease

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