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Maximize ROI from Day One: Equipment Resale Value Tips

If you just purchased or leased new equipment, selling it may be the last thing on your mind. But the beginning of a machine’s life is exactly when to start taking steps to maximize resale value. Here’s how decisions you make now — like planning to rebuild equipment — can help you get the most from your investment.

Estimated read time: 5 minutes

Consider Equipment ROI From Day One

Many heavy equipment owners ask, “How do I get the best resale value?” But that's the wrong question. What you should be asking is, “How do I get the best return on my equipment investment?"

Maximizing ROI starts the moment you bring a new machine into your fleet — not just when you’re ready to sell. By making strategic maintenance choices upfront, you can not only increase your equipment’s resale value but also extend its productive life. That helps ensure your investment works harder and longer for you.

 

 

 

“How do I get the best return on my equipment investment?”

 

 

 

 

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How to Maintain Equipment for a Higher Resale Value

There are steps you can take throughout a machine’s life to make sure it’s as “resale ready” as possible.

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Repair and replace only with genuine Cat® parts. Cat parts are factory-fit to your equipment — designed as part of a complete system that includes your Cat machine, engine and fluids. Using parts that aren’t made specifically for your machine could damage other components and compromise durability, performance and longevity. For a cost-effective alternative to buying new, consider Cat Reman parts. They meet the same high-quality standards as new parts at a reduced cost.

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Perform equipment maintenance on schedule. The recommendations outlined in your machine’s Operation & Maintenance Manual are designed to keep your equipment working at its best over its lifespan. To stay on top of service, consider adding a Cat Customer Value Agreement (CVA) by Cat Financial and get the right maintenance parts delivered right on time. Your CVA costs can be rolled up into your machine loan or lease for one simple monthly payment.

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Sample fluids regularly. Ongoing analysis of your equipment’s oil, coolant and fuel is critical to longevity. Cat S•O•SSM Services help reveal excessive wear, contaminated fluids or other “unseen” issues that could affect machine performance or life. Certain CVAs come with equipment health monitoring, which includes regular fluid analysis.*

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Add extended protection for your heavy equipment. When purchasing or leasing a new machine, add a Cat Equipment Protection Plan (EPP) to cover unplanned repair costs due to covered defects in Cat material and manufacturer workmanship. With Cat EPP, you not only lock in parts and labor costs, but you also ensure that Cat dealer technicians perform any covered repairs. This is crucial for resale by upholding the highest quality standards, ensuring your machine retains maximum value and performance.

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Keep detailed equipment records of your business equipment service history. Good documentation is important for potential buyers. Well-maintained equipment with a complete service history can be more attractive and command a higher price, as buyers value machines that have been properly cared for throughout their lifecycle. Records are also crucial for equipment rebuilders, who use information about past maintenance and repairs to determine the best rebuild strategy for your machine.

 

 

Two Ways You Can Profit From a Heavy Equipment Rebuild

   

 

 

1. EXTEND PRODUCTION LIFE

 

 

   

 

 

2. INCREASE RESALE VALUE

 

 

   

Infrastructure projects large and small are driving growth across all industries, leading to increased demand for heavy equipment. Contractors concerned about economic uncertainty, though, aren’t always buying new — they’re looking at used and rebuilt equipment as economical alternatives.

What does that mean for you as a Cat equipment owner? Planning for rebuilds now can boost your business and profitability in two key ways:

  1. Rebuilding your machines can extend their productive life, allowing you to get more value from your initial investment.

  2. High-quality rebuilt machines hold their value better, helping you get a higher resale price when you're ready to sell.

 

 

 

 

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More Reasons to Rebuild Equipment

Extended life and higher resale value aren’t the only advantages of rebuilding. Cost is another big benefit.

Quality equipment rebuild services can return your end-of-life machine to like-new condition. A Cat Certified Rebuild, for example, includes engineering updates made after your equipment was originally manufactured. It comes with the option to upgrade features and technologies to current standards, too. That means your rebuilt machine may perform better than when it was new.

There are sustainability benefits as well. When you rebuild equipment, you reuse materials from your current machine versus using new materials (and the associated energy and emissions) to manufacture a new product.

In many cases, rebuilding a machine can cost as little as 60% of the price of buying new.

 

 

Key Considerations for a Successful Rebuild

As your equipment approaches the end of its first life, it’s time to make decisions about rebuilding.

First, consider machine age, condition and market demand to identify a good rebuild candidate. Smaller machines may not be ideal, because the cost difference between buying new and rebuilding isn’t as significant. On the other hand, medium to large machines — like dozers, wheel loaders, motor graders, compactors and pavers — can be excellent contenders.

Then, make your selection of equipment rebuilders carefully. Not all follow the same standards or deliver the same high-quality end result. Look for a rebuilder (like your local Cat dealer) who:

  • Uses only genuine OEM parts
  • Adheres to manufacturer specifications
  • Has access to the latest engineering updates
  • Follows strict inspection, quality control and testing processes
  • Offers updates to optional features and technologies
  • Considers cosmetic details (interior cleanliness, new paint and decals, etc.)
  • Provides warranty coverage and rebuild documentation/certification

 

 

 

 

When looking to rebuild, consider machine age, condition and market demand.

 

 

 

 

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Equipment Resale Strategies for Rebuilt Machines

Ready to sell a piece of rebuilt equipment? Timing the market is key. Demand is often higher at the start of the construction season when companies are looking to expand or update their fleets. Keep an eye on market trends, too. Shifts in equipment demand and economic conditions may make buyers more active and willing to pay a premium.

When you list your equipment, highlight the quality of the process, note specific components that were rebuilt or replaced and include high-quality photos. If you opted for a Cat Certified Rebuild, say so — that can help build buyer confidence and set your equipment apart from other models.

As for pricing, aim to balance the quality of your rebuild with competitive market rates. You can typically price a Cat Certified Rebuild machine higher because of the process, like-new condition and warranty coverage. Just be careful of overpricing, as buyers in this market are seeking value.

 

 

Start Now. Profit Later.

Are you ready to reap the potential benefits — extended life, increased resale value and more — of an equipment rebuild? We’re here to help.

In addition to new equipment financing, we offer equipment rebuild financing to help you manage cash flow and pay over time. You can choose secured lending with longer terms or opt to finance a rebuild with your Cat Card account. Special offers — like 0% financing — may be available, too.

REQUEST INFORMATION ON REBUILD FINANCING

 

*Contact your local Cat dealer for availability of Cat CVA agreements with S•O•S

 

 

 

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