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Owning & Operating Costs

Owning and Operating Costs

March 02, 2011 |

Owning & Operating Costs

Compact wheel loaders

A surprisingly cost efficient workhorse.

By Tom Jackson

Depending on applications and usage patterns, many sharp-pencil contractors have found a lot of value in compact wheel loaders.

To find out how these machines add up we asked David Steger, product manager at Takeuchi Manufacturing to run some numbers and tell us what contractors need to know when considering one. Steger recommended we base our compact wheel loader calculations on a Takeuchi TW65. The TW65 has a 1-yard bucket, a 67-horsepower engine, 11,600 pounds of breakout force, weighs 10,500 pounds and offers a 7-foot, 11-inch dump height.

And since it’s a fairly regular debate among contractors we also pulled some numbers on the O&O and production costs of skid steers to see how these machines stack up against a compact wheel loader. “It’s a proven fact the skid steer loader is a versatile machine due to its size, cost and capability,” Steger says. But the comparison is worth making. While compact wheel loader has a higher initial purchase price, in many cases it can provide lower operating costs and more cost efficient production than a skid steer loader. (See Compact wheel loader or a skid steer? on page 36.)

Keep in mind as we discuss these numbers that they are not actual cost figures, but generalized averages for discussion purposes only. Your choice of brand and options will have a big impact on the purchase price, and the harshness of your applications will make a big difference in your operating costs. To get a more accurate estimate, you should evaluate your specific application and consult with your local dealer to ensure you are providing the best comparison.

I. OWNING COSTS

Lifecycles

Compact wheel loaders are built with stronger frames and more durable components than many types of equipment in the in the compact arena and therefore have a longer life. While the owner of a typical skid steer loader may only keep the machine for four to six years, the useful life of a compact wheel loader is often eight to 10 years, Steger says. A realistic average and a reasonable number for calculation purposes for the compact wheel loader would be around 1,000 hours per year.

Purchase price

A TW65 size machine has an average suggested list price between $65,000 and $70,000 with cab, standard bucket, less tires, Steger says. The difference between the two prices is a result of options that the contractor chooses.

Financing/interest costs

There are a number of incentives offered by manufactures with good interest rates, Steger says. If you have your own source of financing or funding to purchase the product, you will often be eligible for an additional discount in lieu of using the manufacturer-backed financing.