Ways to Save on Heavy Equipment

Adding the biggest and most high-tech equipment to your business's lineup may be tempting. However, that's not always a good idea, and there are some important factors to consider before you buy.

A common mistake people make is acquiring the equipment they think they need rather than the equipment they actually need. It's best to evaluate your needs and conduct thorough research before purchasing equipment for your upcoming job. Be sure to review the following before committing to a piece of equipment:

• Size: Consider the size of equipment you need that's suitable for your applications and helps maintain efficiency.
• Versatility: Some heavy equipment enables you to use different attachments to put your machine to work in different applications, making it more versatile. It's beneficial to factor in versatility when making your decision, so your business gets the most out of your equipment by using it for many jobs and/or projects.
• Budget: Determine your budget before choosing equipment as this will help to guide your decision-making process. It's important to know how much you can afford to ensure you find the highest quality options within your means, and without tying up all your capital.

When your needs change, your business can save by reselling your heavy equipment. Consider how the following contribute to the ownership costs of your current equipment:

• Storage: Many factors go into the storage costs for heavy equipment. Consider the amount of space your equipment needs at your warehouse facility and the costs of keeping it secure and protected from theft.
• Maintenance: It's recommended that your business have a preventative maintenance schedule for all of your equipment. Routine maintenance can help maximize the uptime of your equipment and prevent potential failures. However, the annual cost of servicing your equipment can add up.
• Protection: Another factor that contributes to ownership costs for heavy equipment is keeping it protected. While there are many benefits to protecting your machines with insurance or beyond the standard warranty with an Equipment Protection Plan, those expenses can impact your cash flow.

To begin, evaluate your current equipment and consider machine usage compared with your volume of available work. If you don't use some equipment often, it might be best to sell it. Leasing and renting equipment are great alternatives to purchasing equipment if your needs call for a more temporary solution.

In general, heavy equipment interest rates can vary from as low as 8% to as high as 30%. However, limited-time promotions can help decrease the rate at which you are financing equipment. Special offers are typically offered to qualified customers for:

• Select new and used Cat equipment
• Rebuild financing with Cat Financial
• Parts, services and attachments

View current special offers and contact your local Cat dealer to find out more.

The following are some of the monetary advantages of equipment financing:

• Accessing capital: Having an equipment loan allows your business to free up working capital that you can reinvest into your business for various needs, from marketing to equipment repairs.
• Freeing other lines of credit: By choosing to finance your equipment through the manufacturer instead of a bank, you can free up this line of credit in case you need it for other business purposes.
• Increasing financial flexibility: Equipment financing makes it possible to avoid big upfront payments and manage your monthly costs.
  
• Saving on tax payments: In some cases, businesses that finance their equipment can deduct the costs from their taxes. Consult your accountant or tax expert to learn more.

Not all preowned equipment is the same and Cat Certified Used equipment is a great alternative when you need reliable equipment for less than the price of a new machine. For equipment to qualify for Cat Certified Used status, each machine must undergo a rigorous 140-point inspection. Here are the key advantages of buying Cat Certified Used equipment:

• Great Selection: Browse a wide selection of used inventory so you can find the right equipment you need for the job.
• Genuine Cat Parts: Any replacements identified during inspections are replaced with genuine Cat parts, which are backed by the standard Caterpillar warranty.
• Latest technology: Cat Certified Used equipment is equipped with the latest upgrades in fuel efficiency, safety and operator comfort using many of the same features that roll out from the factory today
• Warranty: Cat Certified Used equipment is backed by a Caterpillar warranty which helps protect more than 70 different powertrain and hydraulic system components.
• Service Documentation: Every machine is provided with a comprehensive service report, so there are no surprise repairs you’ll need to make.
• Stable Market Value: Generally, Cat Certified Used equipment retains its value over time.

There are tax benefits when leasing and buying used heavy equipment. It's important to familiarize yourself with how to minimize your tax payments and write off as many of your expenses as you can. We also recommend that you consult your accountant or tax professional to find out what tax benefits you qualify for.

• Leasing heavy equipment allows you to get equipment in exchange for a monthly fee over a set period of time without the additional expense of ownership. In some cases, your business can make the most of lease payments by writing them off on taxes as a business expense. Generally, this can help lower your overall tax responsibility and save money.
• Buying used equipment can also offer tax benefits. As your used equipment depreciates in value, you can receive a tax write-off for this loss and minimize the taxes you owe.

When running a business that relies on heavy equipment to get the work done, it's essential to take all the risks into consideration and protect your company. An Equipment Protection Plan (EPP) for your machines is beneficial to protect your investments. An EPP can provide the following:

• Coverage beyond your standard machine warranty
• Multiple coverage options to fit your budget
• Repairs and service from factory-trained technicians

You can transfer the EPP when you sell your machine in the same region you obtained the plan.

You can also protect your investment by insuring your equipment. With physical damage insurance, you can help make sure you're protected from total or partial losses and the costs to rent replacement equipment. This coverage can help protect your equipment from unpredictable events including:

• Vandalism
• Theft
• Collisions
• Fire
• Floods

The Cat® Card account is the smart way to get what you need to get the job done. Buy parts and pay for service. Purchase work tools and attachments. Pay for a repair or rebuild. Rent equipment. Need extended protection or a Customer Value Agreement? You can put those on your account, too.

Shop with the Cat® Card account to access special offers, plus eligible accountholders are auto enrolled in Cat Vantage Rewards, the Caterpillar rewards program, and earn Cat® Vantage Points on every qualifying Cat Card purchase. Earn even more of these reward points when you shop on parts.cat.com and the Cat Central app.

Get Started