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Commissioners and Caterpillar rep discuss buyback terms for county motor graders; no vote taken
Summary
Franklin County commissioners questioned a Caterpillar representative about buyback values, model differences and service coverage for motor graders; staff will review machine hours and report back to the commission.
Franklin County commissioners on Jan. 29 held an extended discussion with Matt Schuster, a Caterpillar representative, about the company’s buyback (minimum trade‑in) program for motor graders but took no formal action.
The briefing followed a discussion at the commission retreat about equipment replacement terms and blade prices. Schuster explained that buyback figures act as a guaranteed minimum trade‑in value negotiated at the time of purchase, and that the value depends on model, years and hours. He said buyback terms are set at purchase and typically are not renegotiated mid‑term.
Commissioners and staff raised several practical questions: whether extending warranty terms from five to seven years affects buyback entitlement, whether machines purchased in 2019 and 2021 remain eligible, and whether a mid‑term renegotiation is possible. Schuster said some 120‑series graders purchased in 2019 had buyback eligibility that expired after extended hours; he noted that 140‑series graders typically last longer (closer to the 10,000‑hour range) and keep value longer than 120‑series machines.
Schuster gave a practical "sweet spot" example: he said roughly five years or about 7,500 hours can be an ideal point for value, whereas at roughly 9,500 hours or around eight thousand hours for some machines, value drops significantly due to transmission and major component vulnerability. He also explained differences between leasing and outright purchase, noting that some service coverages tied to the buyback program (including rapid parts/service support) may be reduced if equipment is purchased outside program terms.
County staff said they would inventory grader hours and meet with Caterpillar representatives to "sharpen the pencil" and report back to the commission. No motions or votes were recorded on the buyback program at the meeting.
Commissioners asked staff to bring back specific numbers and options so the county can decide whether to continue with certain models or alter replacement timing.
