Business goals, timeline and other factors will affect your decision to repair, rebuild or replace. Let’s explore the pros and cons of each option so you can make the right choice for your machine.
A repair fixes or replaces failed components only. Typically, it’s the least expensive option. But if your machine is near the end of life, one repair may not address all the issues. And the cost of multiple repairs could add up.
Is a repair the right choice for you? Be sure to check the status of your warranty to see if the repair is covered. That may make the decision an easy one. If your warranty's expired, consider the "50-50 rule" instead. Will the repair (both parts and labor) cost more than 50% of what a replacement machine would cost? If so, it probably makes more sense to consider one of the next two options: rebuild or replace.
Looking for coverage beyond your standard warranty? An Equipment Protection Plan provides coverage for parts and labor, and protects you from unplanned repair costs from covered defects in Cat material and manufacturer workmanship.
A rebuild changes out all major machine components and most minor ones, too. (During a Cat Certified Rebuild, for example, your dealer replaces all parts that don’t meet strict reusability guidelines. For a machine rebuild, that typically amounts to about 7,000 parts.)
The result is equipment that performs like new, priced at a fraction of the cost. Rebuilding is more expensive than a repair but more affordable than replacement — especially with rebuild financing available to help you get your machine back on the job quickly.
As you make your repair-or-rebuild decision, keep this in mind: A rebuild is often most advantageous when your equipment has several issues that need attention. It gives you the chance to replace or restore multiple systems, along with upgrading the machine's performance and appearance. But if you're just dealing with a single repair issue, a rebuild may not be the best use of your time and money.
Replacement is buying a new or used machine to take the place of your existing one. Typically, it’s the most expensive option.
To decide if replacement is the best choice, do a repair-or-replace calculation. First, add up your owning costs: the equipment purchase price, taxes and financing minus the resale value. Then add up your operating costs: maintenance, fuel, service and labor expenses over the machine's life. If your operating costs exceed your owning costs, replacing the machine may be a smart decision.
Still have questions about whether to repair, rebuild or replace? Contact your local Cat dealer. The experts there can walk you through the options and recommend a solution for your business.
Have you weighed the pros and cons and replacing is your best option? The next step is to apply for financing. If you want to start planning for a repair or rebuild down the road, a good first step is to apply for the Cat Card today. That way, you won't have to worry about credit approval later. You can get a repair or rebuild on the schedule and get your machine back to work fast.
* See cat.com/catcardrewards for details and terms and conditions.