Hi guys! I'm planning to buy a heavy equipment, definitely a 2nd hand excavator, to be used on a rental business. I have a limited capital, which is a bank loan, that's why I can only afford 1 unit at this time. Can you give me some advise on choosing the equipment, especially the frequently used size (capacity) and what are the things to be checked before buying one? I don't have any experience about heavy equipment but I'm sure I will cope up with this easily since I'm a mechanical engineer. Thank you guys for any help you can contribute!
size depends on the region you live in really. as for things to check for, movement in pins is a big one, they should be relatively tight (little or no play)
Thanks TrentNz! What manufacturer can you recommend?
I'd wait and see what others have to say, as im not a mechanic and there are probably more important things to check. there are a few, Hitachi/Volvo/Caterpillar/Komatsu, are probably the main ones. try get a newer machine if possible as it will generally have less wear and tear. and then it also comes down to which dealer is closest to you for parts and service etc.
Seeing that you are overseas, I'd be trying to get a simple machine, no fancy electronics to keep you from working. The model that comes to mind is the deere 490e, its also a hitachi 120, but i dont know the dash #. The other thing that just came to mind is that we are used to north american versions, and seeing that your close to japan, you might be able to use and repair the infamous grey stuff.
are you going to rent this out with you driving it?
No, i will have someone to operate it..
I wish you good luck but after paying the bank and the operator, there will not much left over.Parts are expensive and if the operator is heavy handed and damages the equipment, bye bye profit.Have you thought of renting out small plant? Disc cutters, etc etc. if it comes back damaged the customer pays
I've already calculated the ROI for that, my capital will be returned in just a months but i need to choose the right equipment and the best quality.. What do you think of Komatsu?
I think of Komatsu as the Japanese version of Caterpillar, excellent!
If I would be in your shoes I would rather start a business in a field where I am already in or where I have some experience. There is probably a much better chance if you buy a service car and offer repairs in the field for contractors. There is a lack of experienced mechanics in many places in the world. But there are plenty of operators and rental companies out there. If you find a special niche for a smart business it is more likely to have success than with a business too many people try. Depending on your place it might be the situation is changing anyway with an economical crisis. I am talking from own experience. With Mevas we found a business with just a few competitors.
CMIRA is in the Philippines, wages are low,low,low!
Actually I have a machine shop that carry out heavy equipment repairs. In our place there is only 3 heavy equipment rental company, one of them is our client which has already 80 units of different kinds of equipment. I'm thinking to start my own with 1 or 2 units but I don't know which manufacturer is best and what model. Thanks!
Manufacturer depends very much on spare parts availability. If you want to go with an excavator Komatsu or CAT should be a good choice. For backhoe loader I would go with a CAT or JCB.