How One Contractor Saved $50,000 with a Used Motor Grader

Working in the heavy equipment industry could be costly if you do not take some measures. Nonetheless, you can save your money and time by following some essential steps. In the equipment industry and earthmoving, equipment costs can make or break a business. Such savings enable small to medium contractors to redirect money back into growth and expansion.

We will present the factual account of a civil contractor who received savings worth more than fifty thousand dollars through their selection of a second-hand motor grader instead of new machinery, but encountered superior performance nonetheless. It will also help enhance the reliability of results.

The Problem: Budget vs. Equipment Needs

A rural Texas county awarded Daniel Reyes, who operates from Texas, a major road rehabilitation contract. The roadwork required the operator to perform grading operations on more than 30 miles of gravel roads that needed constant maintenance.

From the beginning I understood that renting would not work for this situation. According to Daniel the project exceeded eight months of duration so renting the equipment would have cost an excessively high amount in fees.

He faced difficulties when examining new graders on the market. All available grader models from Caterpillar and Komatsu, and Volvo demanded prices between $180,000 to $250,000 beyond his funding capabilities.

The Turning Point

When he started his search for used heavy machinery Daniel dismissed the idea due to common concerns about potential hidden issues. Many people had shared with me their frightening reports regarding used heavy machinery such as hidden problems and maintenance challenges and poor performance outcomes. The cost of initial capital investment made him doubt losing his current business opportunities.

Research and a recommendation from a different contractor led him to inspect certified used equipment. The 2014 Caterpillar 140M3 model represented a widely accessible piece of equipment because it had excellent durability combined with versatile spare parts availability.

The equipment reached 8,500 operating hours, yet it retained a clean maintenance record as the dealer offered a six-month warranty to protect the investment.

The Numbers: How the $50,000 Was Saved

Through proper measures and consideration, the contractor can save more than 50,000 or more than that. Invest wisely in the heavy equipment and its parts to make it practically happen. Here’s how the math broke down for Daniel’s purchase:

  • New CAT 140H cost: $180,000
  • Used CAT 140H cost: $78,000
  • Dealer check & minor reconditioning: $5,000
  • Extra transport & insurance: $2,000
  • Total cost of used grader: $85,000 

Total saved: $95,000 off the new price, but after adding reconditioning and extras, his net saving was $50,000+ to buy used instead of new.

He spent the extra money on an additional operator and on buying a spare parts kit, allowing minimum downtime on the job.

Performance in the Field

Although it is a 15-year-old machine, the used CAT 140H performed reliably. “We operated it for approximately 6 hours daily, five days a week. Other than a hose replacement and a tire alignment, it’s been rock solid,” states Daniel.

The grader used:

  • Crowning and reshaping gravel roads
  • Drainage ditch maintenance
  • Final grading before chip sealing

Its older mechanical control system was a bonus for Daniel’s crew, who were already familiar with similar equipment.

Long-Term Value: Still Going Strong

Daniel retained the grader in his company despite finishing the project. This piece of equipment currently performs municipal works and site development tasks at present times.

Proper servicing of the machine extends its operational lifespan to 3-5 years, as per his estimation for increased ROI. Multiple approaches and strategic measures exist that can be used instead of employment to achieve objectives. Saving this machine investment will result in other valuable returns from the project.

The market demonstrates that maintaining a car well enough to sell it results in preserving approximately 60–70% of its initial price after three years.

Lessons Learned from Daniel’s Experience 

  1. Acknowledging Certified used motor graders as value propositions exists because they come from professional sellers with proper evaluation practices.
  2. Inspection focus on examining crucial components starting from hydraulics through articulation joints and finishing with checking frame structural durability.
  3. The cost savings from his investment decision enabled Daniel to double the project efficiency of his operations. 
  4. Equipment models that maintain easy and affordable accessibility to parts should be selected by manufacturers because of their lower maintenance costs.

Final Thoughts: A Smart Investment

Daniel proves that carefully selected used equipment becomes a catalyst for achieving project success on a large scale. His purchase of used equipment resulted in a strategic victory by saving \$50,000.

The purchase of a dependable used motor grader presents itself as the best decision for contractors who want to grow their fleet while avoiding substantial financial strain.

Also Read: JCB Is Launching All-New Backhoe Loaders With Advanced Features

Christiana Antiga

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