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Author Topic: Monthly payments on used skidder what's a fair rate?  (Read 1246 times)

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Offline logman81

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Monthly payments on used skidder what's a fair rate?
« on: October 15, 2017, 08:01:07 pm »
So what would be a good fair price for both parties for a used skidder? This is a private sale on a 664c Clark and I the puchacser would be in charge of all maintenance/repairs and trucking of machine to and from jobs.
Precision Firewood & Logging

Offline barbender

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #1 on: October 15, 2017, 08:10:45 pm »
You've bought enough skidders that you should know as well as anybody what it's worth👍
Too many irons in the fire

Offline logman81

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #2 on: October 15, 2017, 08:56:03 pm »
I have never had to finance one before though.
Precision Firewood & Logging

Offline barbender

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #3 on: October 15, 2017, 09:05:57 pm »
Ah, I see. Well, I would think if it was, say a $10,000 purchase a 3 year repayment schedule would be fair. I don't know, can a guy go to a notary and get a contract drawn up with a payment schedule, interest rate and all that? Basically like a bank loan the owner is giving you. I've bought property on contract for deed before, and a real estate agent/abstract company drew it up and notarized it for us. I don't know if it would be possible to do something like that for equipment, etc.
Too many irons in the fire

Offline Neilo

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #4 on: October 15, 2017, 09:23:48 pm »
Who owns the machine from the date you take possession? Is it yours with finance from the seller, or rent to buy but it's still theirs?

Offline logman81

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #5 on: October 15, 2017, 09:33:33 pm »
We having discussed any of that yet.
Precision Firewood & Logging

Offline lopet

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #6 on: October 15, 2017, 09:54:33 pm »
What makes you think this is going to work ?  Obviously you've been gone through some tough times, but going from owned equipment to financed is only a gain if you boost production significant.
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Offline Riwaka

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #7 on: October 16, 2017, 01:34:04 am »
There is a Clark 664C listed in Canada the seller would like US$21K for.
From your own research you will know what other similar condition (age, hours and wear/ repair) skidders are available in your area that you can inspect(without considering long distance hauled used machines) to give you a price comparison with your 664C under consideration.
There are JD 440Bs that range from US$10.5K to US$14.5K from a quick look.
https://forestryequipmentsales.com/150/230/401/Timberjack-230-Cable-Skidder.html

If the skidder owner's and your valuation is too far apart, you might ask for an independent valuation.

If in that situation myself, I would prefer to obtain the money from a third party to payout the current skidder owner. If payments were missed (for whatever reason) a third party might take a bit longer to find the machine hidden in the woods (assuming they do not require a gps locator on the skidder) enabling a payment to be made later or deferred. Insurance might be simpler if you are using the machine and the current owner no longer has an interest in it?


Online Corley5

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #8 on: October 16, 2017, 10:59:52 am »
  As an owner of forestry machines I would never consider selling one on a payment plan if the machine was going to be working while being paid for.  The buyer needs to pay me in full with cash or a good check.  This is due to the nature of woods work.  When the machine breaks down do the payments stop and I have to repossess a broken machine that I will then have to repair and sell again? 
  Where the buyer get's the $$$ is their problem.  I'd never consider buying a machine that I was going to put to work while making payments on a plan to a private seller.  If something were to happen I'd rather default to a bank etc. than a private individual.
  Making payments while the machine sits at the owner's place until it's paid for would be different.  Making payments while the machine was still being used by the owner wouldn't suit me either ;) ;D 
  Go to a financial institution and get the money.
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Offline logman81

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #9 on: October 16, 2017, 12:06:19 pm »
Well at this point it is my only option. The guy is a friend of mine and we have worked together in the past. I have tried going through a company in the past and it doesn't work for me.
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Online Corley5

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #10 on: October 16, 2017, 03:08:20 pm »
Good way to ruin a friendship. 
Burnt Gunpowder is the Smell Of Freedom

Offline logman81

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #11 on: October 16, 2017, 03:33:02 pm »
We're not that good of friends more like past co workers but anyways it is about the only option to pay the bills and take care of my family and keep working.
Precision Firewood & Logging

Offline Maine logger88

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #12 on: October 16, 2017, 05:47:41 pm »
I donít know what skidders go for on your area but a good shape 664C around here goes for 15k or so. I would think 500 a month would be fair. Those Clarkís with the 2 speed auto are very tough and not too expensive to fix. I agree with the others about borrowing money from a bank would be better but if itís your only option and you two know and trust each other than you gotta do what you gotta do.
79 TJ 225 81 JD 540B Husky and Jonsered saws

Offline logman81

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #13 on: October 16, 2017, 07:58:59 pm »
They are about the same here and I've heard they are tough. I know the machine i ran it several years ago for a week. A bank is out of the question I already have a loan out for another machine.
Precision Firewood & Logging

Offline snowstorm

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #14 on: October 16, 2017, 08:19:15 pm »
And what and where is the machine you are making payments on?

Offline jdeere540a

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #15 on: October 16, 2017, 08:35:23 pm »
Corley5 is right it can be a good way to ruin a friendship if your not careful. I bought my 540 from a friend that owner financed me. It worked out for us we are still friends butt I was very happy to have it paid off. I paid 10 grand he didn't charge me interest but I paid a grand a month and had to put my 230 up for collateral. If I missed three payments he took both skidders.

Offline larry1

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #16 on: October 19, 2017, 09:48:22 am »
If I had some history of the skidder and new it was decent then I would buy it on a payment plan like you suggested for perhaps $500.00 . month  ,but otherwise I would just rent it and save some cash to purchase another machine . Anything can break and then you may have major repairs plus downtime.---my 2 cents worth. 

Offline Hans1

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Re: Monthly payments on used skidder what's a fair rate?
« Reply #17 on: October 22, 2017, 12:14:55 am »
Another option is to just pay rent or use based on total footage cut at each job.
I had a timber jack 225 and didn't use it enough so I sold it."mistake " The guys I sold it to don't use it that often and will rent it to me I pay them 8 cents a board foot. This works as I mostly cut walnut. I will buy another skidder but don't want to rush into one. Haven't followed all of your posts but good luck with whatever you decide.