NEWS

November 27, 2023

Making the Right Move: Repair, Rebuild, or Replace Your Cat® Equipment?

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We know your Cat equipment is a significant investment. Cat machines are crafted for longevity and engineered to endure demanding operational environments. We know even better that the moment a machine falters, every passing second means potential losses. When challenges arise with a machine, what options do you have? And how do you determine the most suitable option for the needs of your business? In such a dilemma, Altorfer Cat offers three potential solutions: Repair, Rebuild, or Replace. Each option comes with its own set of pros and cons, and understanding when to choose which can be the key to maximizing the efficiency and longevity of your equipment. Let’s dive into the complexities of each option, giving you the guide to make the best decision for your equipment & business!  

When to Repair 

Repairing your equipment is often the first choice when faced with issues. It involves fixing or replacing failed components and is generally the least expensive option in the short term. The pros of repairs include fast, low-cost fix and the comfort of retaining familiar equipment. However, there are cons to consider, such as a limited life expectancy, the inability to modernize features, and potential downtime. If your equipment is nearing the end of its life, multiple repairs might be needed, leading to accumulating costs. To decide if repair is the right choice, check your warranty status and apply the “50-50 rule”: if the repair costs exceed 50% of a replacement, you may consider exploring other options. 

If you think a repair is the right fit for you, contact us today to get your service scheduled. Maybe you just need the replacement part? Head over to Parts.Cat.Com and shop over 1.4M genuine Cat parts – available for easy pick up or quick delivery! 

Repair Pros:

  • Quick, simple short-term fix
  • Low-cost option
  • No pain of depreciation
  • Familiar equipment stays on the job
  • Warranty on replaced Cat parts

Repair Cons:

  • Shortest life expectancy
  • No option to modernize features or update technology
  • No option to add or enhance capacity
  • Possible long lead times or downtime

When to Rebuild

Rebuilding involves changing out major and most minor components, essentially giving your machine a new lease on life. Although more expensive than a repair, it is significantly more affordable than a complete replacement. A Cat Certified Rebuild, which involves replacing approximately 7,000 Cat parts not meeting reusability guidelines, results in equipment that performs like new. Cat rebuilds offer the advantage of modernizing features and technology, typically costing 60% of a new machine and can be completed in 8-12 weeks. However, significant expenses and potential downtime are drawbacks. A rebuild is most beneficial when dealing with multiple issues, allowing for the replacement or restoration of multiple systems.

Rebuild Pros:

  • Get a second or third life out of your machine
  • Modernize equipment features and technology
  • Rebuilds cost about 60% of the price of a new machine on average
  • Can be completed in 8 – 12 weeks, typically
  • Operators don’t have to learn a new machine and can keep working in a machine they know
  • Has a warranty on replaced Cat parts

Rebuild Cons:

  • Significant expense
  • Equipment downtime may require you to rent a machine
  • Supply chain issues can create unexpected delays

When to Replace

Replacing your Cat equipment is the most expensive option but provides the longest life expectancy and the latest technology, comfort, and safety features. It involves purchasing new or used Cat equipment to replace the existing one. The pros include top efficiency, low maintenance costs, and a manufacturer warranty for new machines. However, there’s a considerable expense and a possible learning curve for operators adjusting to new equipment. To decide if replacement is the best choice, conduct a repair-or-replace calculation, comparing owning costs (purchase price, taxes, financing minus resale value) with operating costs (maintenance, fuel

service, and labor expenses). If operating costs exceed owning costs, replacement might be the wisest decision.

Replace Pros:

  • Longest life expectancy
  • Latest technology, comfort and safety features
  • Top efficiency
  • Low maintenance costs
  • New machines include a manufacturer warranty

Replace Cons:

  • Greatest expense
  • Possible learning curve for operators to learn new equipment
  • Long-term commitment

In the world of heavy equipment, decisions are critical, especially when faced with the dilemma of repair, rebuild, or replace. A repair offers a quick fix at a low cost but may not be sustainable in the long run. A rebuild, though more expensive, rejuvenates your machine, providing modern features at a fraction of the cost of a new one. Replacement, the costliest option, ensures top-notch performance with the latest technology. To make the right choice, evaluate the specific needs of your equipment, considering factors like age, number of issues, and overall costs. Whether it’s a swift repair, a comprehensive rebuild, or investing in a new machine, our options empower you to keep your heavy equipment working efficiently, minimizing downtime, and maximizing returns on your investment.