CUSTOMERS WANT LEASING OPTION
Dirk Groth says in the past the trend was to buy secondhand equipment but customers are now asking for the option of leasing which can be expensive, depending on country and/or the client, as banks and leasing companies have their own differing risk assessments for this country or that borrower. But with the appeal of off-balance sheet financing, many customers are more interested in leasing which of course increases the supplier’ s potential buy-back commitments. In the US, over 50% of all equipment is leased anyway, says Dennis Connors. Bernt Eriksson says most of Kalmar’ s machines are sold but are also available for short-term rental for peaking or back-up situations. Long term leasing is not common however due to the technical risks involved.
There are some obvious advantages points out Dirk Groth of Noell Konecranes: “If you have a supplier who can offer you the right equipment, meaning the structural dimensions like rail span etc. all fit the specification, then you can get a crane very quickly and you have only the transportation time from A to B. That difference in the delivery time is real money as the new owner can be operating the pre-owned crane that much sooner.”
As to price, Thomas Bachmann reckons, basis 2,000-2,500 operating hours per year, a potential buyback value of around 80% after the first year to around 45-50% after 5 years. “But if you know you’re taking back a crane that has been used 4,000-4,500 operating hours a year, or if you know about a major breakdown or a major component which needs to be changed, then all this must be taken into account. So our service engineer does a site inspection to get some idea about its history. In the past we have had some bad experiences with trusting customers about the actual operation of the crane so it’s always better to make a personal visit.”
Bob Brown says: “You can bring used equipment in for two years then move towards new equipment. We sell you a reachstacker for £70,000 and guarantee that in three years we will buy it back for £35,000. So in effect you’re buying a piece of equipment for £35,000 which would cost £250,000 new. Where’s the difficulty of making a decision like that?
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