Buying Caterpillar heavy equipment is just like purchasing any other type of physical property that requires a large investment. You will need to take a variety of factors into consideration to ensure you are making the right purchase decision. The sales person will try to get you to buy the equipment at the highest price to make the largest commission they can. Getting financing will also be an issue. All of the issues can be potential landmines. However, if you do the proper research and follow these tips, you can take the pain and trouble out of purchasing heavy equipment for you project.
Just like buying a car or a home, it is best to arrange for financing before you walk through the doors of the Caterpillar dealership. Even though the dealer may offer financing, it is best to have a choice. The dealer financing may come with a higher percentage rate. Even a 1% difference can mean an increase in your monthly payments of several hundred dollars.
Also, if the dealership knows that you have a better financing offer, they may be willing to negotiate the terms of the loan for the Caterpillar heavy equipment just to make sure that they get your business.
It pays to shop around. Even though there may be only one dealership in your area, you can still do price comparisons using the internet. There are several companies who sell Caterpillar heavy equipment through an online store as well as several online auction sites. Spend time researching what others are charging for the same piece of equipment. This serves two purposes. You will get a sense of what a typical price for the machine really is and whether or not the dealership is charging a fair price. Additionally, you may be able to use that information to negotiate a lower price if you can show that someone else is willing to sell you the same piece cheaper.
The easiest way to get a good deal on your Caterpillar heavy equipment is to be nice. Even though you are negotiating, you want to be pleasant about it. People like to do business with people they like. If you are cantankerous or rude, then your salesperson may not be as willing to negotiate with you because they really just want you to leave. Although it sounds crazy, a smile really could help you trim a few thousand dollars off the cost of your machine.