Cat Technicians going over their rebuild options

Should You Repair, Rebuild or Replace
Cat^® Equipment?

When you have problems with a machine, you have options in addition to buying new. Take a look at the pros and cons of each choice.

Estimated read time: 4 minutes

Cat Financial

Published: Oct 03, 2022

Your equipment is a significant investment. Cat^® machines are built to last and designed to withstand heavy-duty operating conditions. But when you experience problems with a machine, what are your options? And how do you choose the best one for your business?

Cat Financial is here to help. We understand your equipment and your challenges, and we can help you weigh the pros and cons of your options: repair, rebuild or replace.

Here’s some more good news: Whatever you choose, the Cat Card can help pay for parts, services, rentals, attachments and more. Apply today and earn rewards* on qualifying purchases while you wait for your machine to get back to work.

Finance a Cat rebuild for D8s, D9s, 773 rock trucks, 777 rock trucks

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WHAT IS THE RIGHT CHOICE FOR YOUR BUSINESS?

Business goals, timeline and other factors will affect your decision to repair, rebuild or replace. Let’s explore the pros and cons of each option so you can make the right choice for your machine.

REPAIR

A repair fixes or replaces failed components only. Typically, it’s the least expensive option. But if your machine is near the end of life, one repair may not address all the issues. And the cost of multiple repairs could add up.

Repair Pros

Fast, easy 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 technology
No option to add or enhance capacity
Possible long lead times or downtime

Is a repair the right choice for you? Be sure to check the status of your warranty to see if the repair is covered. That may make the decision an easy one. If your warranty's expired, consider the "50-50 rule" instead. Will the repair (both parts and labor) cost more than 50% of what a replacement machine would cost? If so, it probably makes more sense to consider one of the next two options: rebuild or replace.

Looking for coverage beyond your standard warranty? An Equipment Protection Plan provides coverage for parts and labor, and protects you from unplanned repair costs from covered defects in Cat material and manufacturer workmanship.

REBUILD

A rebuild changes out all major machine components and most minor ones, too. (During a Cat Certified Rebuild, for example, your dealer replaces all parts that don’t meet strict reusability guidelines. For a machine rebuild, that typically amounts to about 7,000 parts.)

The result is equipment that performs like new, priced at a fraction of the cost. Rebuilding is more expensive than a repair but more affordable than replacement — especially with rebuild financing available to help you get your machine back on the job quickly.

Rebuild Pros

Get a second or third life out of your machine
Modernize equipment features and technology
Rebuilds cost significantly less than the price of a new machine
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

As you make your repair-or-rebuild decision, keep this in mind: A rebuild is often most advantageous when your equipment has several issues that need attention. It gives you the chance to replace or restore multiple systems, along with upgrading the machine's performance and appearance. But if you're just dealing with a single repair issue, a rebuild may not be the best use of your time and money.

REPLACE

Replacement is buying a new or used machine to take the place of your existing one. Typically, it’s the most expensive option.

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

To decide if replacement is the best choice, do a repair-or-replace calculation. First, add up your owning costs: the equipment purchase price, taxes and financing minus the resale value. Then add up your operating costs: maintenance, fuel, service and labor expenses over the machine's life. If your operating costs exceed your owning costs, replacing the machine may be a smart decision.

Operating Costs vs Owning Costs

Ready to take the next step?

Still have questions about whether to repair, rebuild or replace? Contact your local Cat dealer. The experts there can walk you through the options and recommend a solution for your business.

Have you weighed the pros and cons and replacing is your best option? The next step is to apply for financing. If you want to start planning for a repair or rebuild down the road, a good first step is to apply for the Cat Card today. That way, you won't have to worry about credit approval later. You can get a repair or rebuild on the schedule and get your machine back to work fast.

APPLY NOW

^{* See cat.com/catcardrewards for details and terms and conditions.}

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Should You Repair, Rebuild or Replace
Cat^® Equipment?