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Lawrence Martin's avatar

As I commented before I retired out of the Automotive/Commercial Truck industry. I'm about 90% onboard with your analysis. The 1987 Caterpillar even with low hours might have limited parts support as a nearly 40 year old machine. Warrants investigation if the downtime would be critical. Seals and gaskets age out and start failing. Other parts fatigue like bushings, chains, on the forklift mast. Are the new forklifts better suited to the tasks they are to perform? Its a question worth investigating.

Any well run larger construction/logging/industrial equipment rental business will have a comprehensive file on every piece of equipment. The city fleet should be no different. Each piece deserves evaluation and would the City be better served possibly buying a low hour used piece of Equipment from Pape Caterpillar or United Rentals. They rent/lease and maintain new equipment. Depreciation schedules are 3 fiscal years and you've achieved 100% depreciation. Usually that 3 year old piece of equipment can be bought very reasonably. Its had documented service and often the manufacturer will offer a limited warranty. They want to see that equipment gone and put in a fresh piece and start the cycle all over again. With the exception of Police vehicles I'd look at used Enterprise, Budget, Hertz rentals. Again they operate on a 3 fiscal year depreciation schedule. Depending on in-service dates these companies can gain 100% depreciation in as little as 370 days of service. You can get substantial savings over the price of new with remaining factory warranties. Since these cars once in municipal service don't get a lot of miles by calendar year 8 or 9 they'll still be considered low mileage and bring premium dollars at auction.

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