Skid steer loaders are evidently some of the most important heavy machinery in the construction industry, other than bulldozers, backhoe loaders, and boom lifts. Being a highly renowned heavy machinery manufacturer, Bobcat is one brand that produces compact, durable and reliant skid steers.
These units are relatively versatile, allowing you to outfit them with an array of attachments enabling them to carry out an array of tasks. The machines are capable of accomplishing different tasks satisfactorily, ranging from plowing snow to digging trenches.
However, skid steers are expensive pieces of equipment, requiring tens of thousands, if not hundreds of thousands to buy. If you do not have enough money to buy one or intent to use it for a short period, you should consider renting one.
In this regard, here are some of the key factors that may influence the cost of renting Bobcat skid steers.
Skid Steer Rental Costs: The Industry Standard
The cost of renting a skid steer depends on an array of aspects. Again, rental costs for heavy construction equipment are known to fluctuate based on location, supplier, and even model of the equipment.
On average, these are the industry standard rates associated with renting skid steer loaders:
- Hourly Rates – $50 to $100 hourly
- Daily Rates – Between $150 and $500 a day
- Weekly Rates – Between $600 and $1,200 every week
- Monthly Rates – Between $1,000 and $3,000 a month
Longer periods will probably attract lower rental rates, based on your location and several other factors discussed below. In addition to the above-mentioned rates, you will also be charged for the skid loader attachments you will be using with the machine.
In this regard, your provider will require you to pay between $150 and $500 a week on weekly skid loader attachment. For monthly rentals, you should expect to pay between $350 and $1,350 every month.
Bobcat Rental Cost – Renting from a Trusted Brand
The Bobcat Company actually invented the world’s very first skid-steer loader. With more than 50 years in business, Bobcat is known for its quality performance and reliability. Bob has several best-selling skid-steer loaders.
Here are some average rental rates (may vary by region):
|Equipment||Rental Rate (4 hours)||Daily Rate||Weekly Rate|
|EXCAVATOR, E26 BOBCAT COMPACT||$248.00||$308.00||$1,210.00|
|EXCAVATOR, E32 BOBCAT COMPACT||$248.00||$308.00||$1,210.00
|MT52 Bobcat Breaker 350lb||$149.00||$198.00||$666.00|
What Affects Skid Steer Loader Rental Costs?
How exactly is the daily, hourly and monthly rental cost arrived at? Basically, the rental rates for slider steer loaders are determined by three main factors.
In order to work out this rate, you need to consider ownership costs, return on investment (ROI) and Depreciation of the equipment. Additionally, you also need to factor in several miscellaneous costs, as described below.
Also referred to as the ownership costs (COW), these include expenses incurred by the owner in the acquisition of the equipment. COWs are mainly based on the total purchase price, the economic life period, and the estimated salvage value of the equipment at that particular point.
The cost items under COW include depreciation, return on investment, applicable taxes, and other costs such as insurance, storage, and replacement escalation.
Return on Investment (ROI)
The purchase of construction equipment is often considered an investment venture. As such, it is made on the premise that the investment will ultimately yield a rate of return high enough to compensate for the risk of the undertaking.
Thus, interest is charged on the capital used for purchasing the equipment, whether the purchase is financed or paid for by the owner.
In the latter case, the allowance of interest charged is made to compensate the company for the rate of return that its funds would obtain if deposited in a banking institution. It should also compensate the investor at a rate they would get if invested in a different venture.
Depreciation is a non-cash flow accounting method that is commonly used to determine the loss in value of an investment over a period of time. It is mainly a product of time and use, and it is caused by unrepaired wear, deterioration, obsolescence, and reduced demand. The method used depends on the purposes of the depreciation.
For the purpose of internal accounting, the straight-line may be used. This method depreciates the cost into equal portions throughout the life of the equipment.
For tax purposes, most companies will use an accelerated depreciation method, since it would provide for a larger share of the cost to be written off in the earlier years of equipment ownership.
Common accelerated depreciation methods include the declining balance, the sum-of-the-years-digits, the accelerated cost recovery system (ACRS), and the modified accelerated cost recovery system (MACRS).
This double accounting procedure is legal and used openly in the construction industry. However, true depreciation can be measured only by determining the market value of the equipment at a particular point in time.
In addition to these three main components of Bobcat skid steer loader rental rates, there are several other minute things you should factor into the overall cost. Among these are mobilization to the site, required safety inspections, and other expenses that may apply.
Discussed below are several other factors that will also affect the rental cost, especially in the long run:
Operation costs are essentially the costs associated with the use of the equipment. They include the costs of maintenance, repairs, fuel, and lubrication. The type of equipment, the conditions under which it is used, and the location of the project.
Discussed below are some of the factors that will influence the cost of operation:
Repair and Maintenance
Maintenance repair costs include scheduled services of a preventive nature and repairs caused by unforeseen mechanical breakdowns.
The estimation of maintenance costs can, therefore, be made more accurately than for repair costs. The best way to estimate future maintenance and repair costs is to use past records as a guide whenever available.
The expenses under this category are the costs of parts, sales taxes, labor, fringe benefits, shop overhead, any supporting facilities, and any maintenance equipment required. The annual repair and maintenance costs may be expressed as a percentage of the annual cost of depreciation.
The quantity of oil used by an engine will mainly depend on the engine size, the capacity of the crankcase, the condition of the piston rings, and the number of hours between oil changes. A simplified way to calculate the hourly cost of lubrication oil is to consider it as a percentage—between 10 and 30 of the total fuel costs.
Under standard conditions–barometric pressure of 29.9 in. of mercury at a temperature of 600F–a gasoline engine consumes about 0.06 gal of fuel per flywheel-horsepower-hour. A diesel engine, on the other hand, will consume about 0.04 gal under the same conditions.
Under severe conditions, the consumption of fuel in both engines will shoot up by up to 30 percent. Engines that seldom operate at the rated output or at a constant output for long periods have a reduced fuel demand because of time and operation factors. Such are the aspects you need to consider while calculation fuel cost.
Ready to Rent A Skid Steer Loader?
Renting construction equipment, including skid steer loaders, is a common practice in the construction industry. In addition to many other this solution has to offer; it is an affordable way for developers to complete their projects.
As you have learned throughout this guide, rental costs for such equipment varies from one location, and equipment model to another. Again, the cost will be influenced by ownership and operational costs as well as several other miscellaneous factors.
Factoring all these aspects will allow you to work out Bobcat skid steer loader rental costs more precisely.