Define the period and the work
Choose the ownership period, expected engine hours and productive hours. State whether the estimate includes an operator, attachments and transport. Use the same boundaries for every candidate. A quote excluding labour cannot be compared directly with a fully operated hourly rate. Keep tax treatment and financing assumptions explicit and obtain advice relevant to your business when those materially affect the purchase.
Separate ownership from operation
Track purchase less expected resale, financing and other fixed costs separately from fuel, maintenance, wear and repairs. Caterpillar's cost guidance distinguishes owning and operating costs; HeavyEQ's worksheet applies that distinction to your inputs. Do not add the full purchase price and depreciation as separate expenses in the same ownership calculation. Explain how any financed principal is treated so it is not counted twice.
Use a transparent calculation
Consider a planning case with CAD 24,000 of annual ownership costs, CAD 36,000 of operation and service, and CAD 8,000 of mobilization. The total is CAD 68,000. At 1,000 productive hours that is CAD 68 per hour; at 700 it is about CAD 97.14. These are chosen inputs demonstrating the calculation, not market rates or a quote. Replace each amount with your own evidence.
Stress-test what is uncertain
Change productive hours, a major repair, fuel spending and resale assumptions separately. This shows which unknowns deserve investigation before buying. Record the source and date for each supplier quote, and label estimates clearly. If a required repair has no price yet, retain it as an open item instead of entering zero. Include the work or rental cover needed while the machine is unavailable.
Decision worksheet
| Decision | Evidence to collect | How it changes the shortlist |
|---|---|---|
| Ownership | Purchase, resale, financing and fixed-cost basis | Establishes the annual cost of having the machine |
| Operation | Fuel, service, wear and repair assumptions | Connects cost to the intended duty |
| Utilization | Productive hours under low/base/high cases | Shows the hourly effect of unused capacity |
Before you decide
Questions to close out
- State currency and time period.
- Keep ownership and operating totals separate.
- Document quoted versus assumed inputs.
- Run a lower-utilization case before committing.
The most useful output is the range and the reasons for it. A precise-looking hourly total is only as dependable as the repair, resale and utilization assumptions behind it.
Continue your research
Sources and further reading
Technical references supporting this guide. Machine manuals and documentation for the actual configuration remain essential when applying the guidance.