Alternative Financing Options for Equipment Lease

Q: What role does Dimanor play in the mining industry in Mexico?

A: As well as providing John Deere agricultural machinery, we also distribute drilling equipment from established brands such as Furukawa Drill. Mining is a cyclical industry, and the sector is currently experiencing an extended downturn, which has had a profound effect on our business like many others. We have around 80 machines rented throughout the mining industry in Mexico, and with the fall of the metal prices not only did the number of rentals decrease but more importantly the quantity of rental hours also declined drastically. We usually have around 600 hours of usage for our rented equipment in the mining sector but at the moment that figure is down to less than 200 hours.

Q: What financing solutions does Dimanor offer its clients in order to be more competitive and flexible?

A: As an official John Deere distributor we have our own finance arm, called John Deere Financial, which is in charge of the financial side of the business. Our most popular program is the “24-0”, which enables the client to use the product for 24 months with 0 percent interest. The vast majority of our clients rent our equipment first and then after a period of 6-8 months decides to buy the product. For this reason, around five years ago we set up a plan whereby the client can rent for six months, and upon buying the product can opt for the 24-0 program, giving them a further 24 months of interest free usage. The client therefore receives 30 months of interest free usage of the technology, and roughly 80 percent of all equipment we sell to the mining industry is purchased under this plan.

Q: What innovative products does Dimanor plan to introduce into the Mexican mining industry to improve productivity within the sector?

A: One product that is certainly leading the way in terms of technology is the John Deere 1050K bulldozer, which not only has a dual-path hydrostatic transmission but also has a setting that reduces fuel consumption by up to 25 percent. However, more importantly than the machinery itself, we believe it is essential for users to be able to keep track of the machine’s location, fuel usage, and overall performance. For this reason we developed the JD Link system, which falls under the broader WorkSight solution. This is an administrative tool that allows both Dimanor as the provider and the user to digitally monitor and analyze usage of the equipment, and therefore helps to prevent maintenance issues from arising.