Plan Your Exit Strategy (Buy for Free)
At 14:24 in
8 Equipment Buying Mistakes 99% of People make
What happens here
The most important piece of advice is to always buy equipment with a clear exit strategy in mind, ideally aiming to acquire it 'for free.' This means purchasing equipment that retains a high resale value. The speaker provides an example of buying a used backhoe at an auction for $20,000, using it for 15 years, and then selling it for the exact same $20,000. In this scenario, the only true cost of ownership was maintenance and upkeep. To achieve this, it's generally best to buy gently used equipment rather than new (which depreciates 10-15% immediately), and keep it in stock (OEM) condition, avoiding custom modifications that can decrease its market appeal. This strategy allows you to effectively utilize equipment over time while minimizing the actual financial outlay.
Goal: Minimize the long-term cost of equipment ownership by prioritizing items with high resale value.
Tools and materials
- Backhoe — Personal example of equipment bought for $20,000 and sold for the same price after 15 years
- Black Ford F-250 Pickup Truck Ford — Example of a vehicle with high resale value when kept stock
- Bobcat S185 Skid Steer Loader Bobcat — Example of equipment that can be bought gently used and resold for similar price
- Kubota KX040-4 Mini Excavator Kubota — Example of equipment that can be bought gently used and resold for similar price
- SDLJG Loader SDLJG — Example of a 'cheap Chineseium loader' that can still offer value
- Paint — Refreshing used equipment for better resale value