Any ideas out there at what number of hours is the most cost efficient time to trade equipment in. I know the figure will vary but a rough idea will do me. The equipment I would like to know about is John Deere 700, 750, 322, and 160, also a CAT 320C. They have been well maintained and have not been working in rock? I would be gratefull for any input.
I have no clue as to what the money value of any machine is, but I would think the main reason one would want to know the most cost effective time to trade is, according to machine hours, would be to get the most trade in value. If that's the case, very low hours, say less than 5000, would be optimal. But, IMHO, machines hours has less to do with the value of a machine than does the condition of the machine and it's components. I've seen machines with less than 1000 hrs and look like they been used to excavate Hades. Likewise, I've seen machines with 15000 hrs + that you wonder if all they did was start it in the morning and let it idle all day. To me, an hour meter is good for knowing when to service the machine, the condition of the machine is better for knowing what it's worth.
That is one excellent piece of advice,which I agree with,unless a company has money to burn or are like some outfits here who lease equipment for 6000hrs with service included and then drive the living **** out of them, this example has only 900hrs odd on it when I photographed it , View attachment 46136 there was even boot prints on the inside of the top of the cab. The general appearance of a machine is a good indicator of it life thus far,a low hour machine that has being reprayed completely well may raise some cautionary queries,sometimes a high hour machine that was well minded and has had a rebuild is a better buy .
Thank you for the info so far. In this case I know the condition of the equipment because we own it. What I was looking for was at what age or quantity of hours can you expect to start getting some big dollar failures. The down time waiting for parts here in Argentina is a big factor, with a CAT or a Deere.
All depends on how the operator treats/runs the machine, and following service intervals.
LDK, What you are asking has so many variables that an absolute answer cannot be determined in any case. Each manufacturer and each type of machine will have different wear factors that will also change per application it is used in. About the only method I have been able to use with some consistency is to monitor the condition of each machine and project, through experience, when components are likely to fail. You then also have to monitor markets for your machine noting both what you are likely to obtain in trade for your machine and what it will cost to purchase a replacement. Finally you will have to keep a sharp eye on the amount of work you are likely to have in front of you that you will use your machine on. You might only keep a machine three to five thousand hours if it has to operate or be available everyday and it will cost more than you care to spend if it breaks down. On the other hand if it will only work a few times a year in a support role where it's nice to have but your out nothing if it's waiting for a part, you might keep it for five to ten years or longer. It all depends on your needs, experience and future planning.
Generally if you have a fleet of machines, you set yourself a timetable for replacement of perhaps one or two machines a year. Otherwise you may end up in a situation where you need to turn over a lot of machines in a short space of time, which may well lead to a financial overstretch. Or you get into a situation where you spend a lot of money and downtime on repairs, which affects your reputation. There is no real magic hour number at which machines are stuffed, various factors come into it, a main one being your maintenance program. If you have access to oil analysis and such you should have a good idea of the state of your equipment. However a factor to consider in your situation is the complexity of newer machines, which rely heavily on electronics. In some ways you may be better of spending money overhauling an older and simpler machine than spending money on a very complex piece of equipment, to find that when it has problems the local mechanics know nothing about them and you could end up with a shiny near new machine sitting there doing nothing, whilst your competition are plowing ahead with their older machines. We had this problem once with a Case/Steiger tractor which had a powershift transmission and it used to keep breaking down because the local workshop did not have anyone that really knew much about these transmissions. Whereas the series 4 Steiger it replaced used to be as relaible as the Sun but was a very basic machine.
John C, It is the experience of other operators and companies that I was looking for but thankyou for your reply. Hendrik, Most if not all of the equipment I listed is allready in the electronic era so I am allready in the oven there. I was looking at a best case scenario of having the equipment in full time work and figured that someone out there would have accumulated some information on these models that they would not mind passing on. Thank you for your input.