Tuesday, January 6th, 2009 |
Did you know that the world’s largest heavy dump truck, the Caterpillar 797B, costs a cool $4.6 to 5.7 million? Twenty-five feet tall, thirty-two feet wide, and forty-seven and a half feet long, this heavy dump truck can carry up to 345 tons of waste. It’s so huge, the heavy dump truck has to be shipped in pieces to any buyers with millions to spare and assembled on site.
The world’s largest heavy dump truck, most often used for open pit mining, can hit speeds of up to 42 miles per hour with its 3550 horsepower engine. Any company that can afford the minimum $4.6 million asking price probably knows that maintaining the Caterpillar 797B is no inexpensive matter, either. If you ever need to replace one of the four-ton, thirteen-foot tall tires, be prepared to shell out $40,000 each!
Unless you are the owner of a huge open pit mining operation, the trucks for sale you deal with at your farm or construction, mining, or demolition company are probably smaller and less expensive than that. Still, what’s small and inexpensive next to the giant Caterpillar 797B is not necessarily small and inexpensive on its own. Half a million dollars is not an unheard of asking price for many heavy dump trucks, although there are quite a few in the $50,000-100,000 range.
If the used dump truck is as effective and as functional as the latest new heavy dump truck, why not save yourself thousands by buying the used dump truck online? If you find the right used heavy construction equipment Web site that charges absolutely no buyers’ fees and requires no upfront down payments, you’ll have the freedom to inspect the heavy dump truck firsthand before committing thousands to a used dump truck that might not be as high-quality.
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Sunday, September 7th, 2008 |
Getting finance for a dump truck is similar to getting finance for anything else. You have to undergo the same steps to find the right program to suit your needs. Whichever type of truck, dump truck, semi truck or heavy duty truck you want to buy there is a loan program for each. There are many other options available for financing.
The first place one would normally checkout is the local bank. Mostly the criteria would be to have a good credit score at the personal level and other documentation required. The previous year’ s income tax returns may be needed along with the current financial statements. If it is a new business just starting off, it also should have a credit score of 680 or higher. Such businesses are considered high risk areas and the companies should be able to meet the higher lending standards. Most of these banks as well as the financial organizations offer loan programs for the purchase of or lease of dump trucks.
When the company that requires finance for the purchase of dump truck takes up a loan program, the ownership title is transferred at the end of the loan repayment period. However, the documentation required initially to acquire a loan is a lot and hence, many companies drop the idea. When opting for the loan option, the organization has to be careful and enquire whether the loans extended are only for new trucks or also converted trucks. Most often there is lot of paperwork involved in this. However, now such companies are trying to design a system which would involve only using the applications to provide loans. The dump truck would be the collateral in this case for the loan. In most cases the credit score required is 575.
One alternative is opting for the partial finance, where part of the amount is given as loan and you put down part of the amount and finance it accordingly. These loans are easier to avail of and you may get better rates and terms of payments.Another option that these companies have is the dealer’s financing and inventory program. The lending company displays an inventory he has and the financing agreements. This kind of financing is useful for the large as well as the new start up companies. This provides an excellent opportunity to the companies to access great deals to the buy the appropriate dump trucks, as per their specific requirements.
One can also opt for the equipment leasing option. It is a contract for a longer period with a take-over option. The dump truck is owned by the leasing company till the period of rent, while the company uses the dump truck. The classic truck is the security itself. In leasing, the first and last payments are usually about 20% of the truck cost amount as down payment. This is preferred than the loan method as the initial expenditure is lower. Generally, credit history of larger periods like 2 to 3 years is not required as is the case with the loan method. The advantage of leasing is also the tax benefit.
When you are on the lookout for financing your dump truck purchase you need to consider things like the initial payment, the monthly payments, collateral required and any buyout clauses. You may even consult a broker regarding the benefits of dump truck financing. Each type will have its own pros and cons and you need to consider all these factors before selecting the correct one.
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