How much do you earn by renting an excavator?
Excavators are one of the most widely used vehicles in the construction industry. Also, they have purposes in other areas such as mining, agriculture, landscaping, etc. Due to this, multiple owners dedicated to the sale and rental of heavy equipment have this type of vehicle almost by default.
In North America, there is a growing market with a tendency to rent vehicles, especially excavators due to the versatility to acquire the latest technologies at an affordable cost while developing a project so that owners can make considerable profits for renting their equipment.
How much do you earn renting an excavator?
Talking about profits obtained from renting machinery is a complex issue since it involves multiple variables that can affect the result in whole or in part. Therefore, the figure obtained will largely depend on the general condition of the excavator, maintenance or repair expenses, vehicle size, year of manufacture, make, model, etc.
To exemplify this scenario and obtain a realistic figure, one of the companies announced in Gotoyard (in Mexico) shared its income data for this post. Exchange rate as of November 25, 2020
| Marca | Caterpillar |
|---|---|
| Brand: Caterpillar | 320D |
| Manufacturing year 2012 | 2012 |
| Vehicle cost | 1,696,792.00 MXN (84,953.32 USD) |
| Months since acquisition 25.89 | 25.89 |
| The monthly amount for the rental of the equipment. | 60,000.00 MXN (3004.02 USD) |
Since the acquisition of the equipment, the excavator has been rented a total of 22.31 times which translates into the following income:
| Ingresos totales generales | 1,338,500.00 MXN |
|---|---|
| Maintenance and repair costs | 132,176.00 MXN (6,617.66 USD) |
| Global profit | 1,206,324.00 MXN ( 60,397.05 USD) |
| Vehicle cost | 1,696,792.00 MXN (84,953.32 USD) |
| The total return on investment 71.09% | 71.09% |
| Net monthly profit | 46,597.00 MXN (2,332.97 USD) |
With the data obtained, it is estimated that 36.41 months should elapse to obtain the return on investment of the equipment, also, depending on the variations of the Mexican machinery market, it will be possible to resell the equipment at an estimated 1,800,000.00 MXN (90,120.64 USD) when necessary due to the integrity of the machine, acceptance of the manufacturer brand and model.
To obtain an income of this type from owning excavators, it is necessary to rely on advertising media that allow the arrival of customers frequently to keep the equipment rented.
The selection of an appropriate channel to carry out marketing of your machinery should not only cover local media but also generate openness in other cities, states, and even countries where your equipment is requested.
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