With a vast number of used bulldozers available and even more in the new market, be prepared to devote enough time and attention to properly studying the market to find the right one for you at the right price.
On the used dozer market, our research revealed a massive selection. Some only 10 years old and others dating back to 1980s. Unsurprisingly the big names dominate with many Caterpillar, John Deere, Komatsu and New Holland units up for grabs. Investing in a reliable and well-known manufacturer can be a reassurance that the availability of parts, repairs and servicing is assured as the major manufacturers make commitments to Australian buyers.
If you’re looking at buying a new machine, chances are you will know which manufacturer is your preference so it’s just a matter of going into negotiations with the dealer.
With the average purchase of good used dozer coming in at in excess of $200,000 and new models substantially more, a good purchase deal really needs to be matched with an equally great finance deal. You’ll be pushing up hill to realise your expected ROI if you’re paying over the odds on your equipment loan.
Preparations for bargaining with a seller, be that a private seller or a new machine dealer or even before you head to auction, should start with getting your finance sorted. Most people do it the other way around – commit to a purchase and then approach the bank or finance company for a loan. Only to have to accept a finance deal perhaps without the adequate due diligence in checking what is available, because the seller has you under pressure to close the deal.
A good solution to this dilemma is to organise pre-approved finance and an even better solution is to use a finance broker to handle the whole finance side of things for you.
Pre-approved finance is what it states – you submit your application, or preferably the broker does on your behalf, and you get finance approved for a set amount. So you know you are in a position to purchase and can confidently move forward. Possibly use that confidence to turn the tables and put pressure on the seller to reduce the price as you can finalise asap.
A major bugbear for most business people is the amount of time involved in organising finance when it comes to asset acquisitions. All those endless calls, answering a million questions, waiting for call backs and approvals – all time that you could be spending earning a living.
If you want to get a number of finance quotes so you can compare and source the cheapest, that only doubles or triples the amount of time.
The solution lies in using a finance broker. You just call them up from wherever you are, give them your brief and let them do their job while you do yours. They’ll use their contacts at a myriad of banks and lenders to source quotes and then come back to you with an offer. Having done a lot of the comparison work, your broker is your assurance that you’re getting the cheapest deal.
A few tips before you call the first finance broker you can find or worse still, call the person that organised your home mortgage.
You want a finance broker that specialises in heavy equipment finance and has the runs on the board. They’ll have direct contacts with lenders and banks that regularly finance bulldozers so will be in a better position to offer you a great deal.
Once you’ve got the finance, choosing which bulldozer to buy should be a breeze.
We know people who operate in the equipment finance area and have experience in sourcing finance for the sector. If you would like their contact details, please contact us.