Fractional Ownership for Tractors

[oldsmoboat]

Anyone heard of this? They do it for airplanes. While a tractor doesn't cost as much as a plane it's still an expensive "investment". Renting one at $250 a day adds up but if I bought one it would sit 28 days a month.
You'd have to have a contract spelling out maintenance and user damage issues but I would think it could be worked out.
Any thoughts on this?

 

[Woodbeef]

On paper,maybe. But in the real world no. Tried it once with a dozer. Never available when I wanted it. Loaned out by other owner too often to friends. Always hassel on repairs. Not worth it in long run as far as I'm concerned. Had written agreement that covered everything we thought...........ended up only worth paper it was written on. Impossible to enforce agreement.

 

[PILOON]

Anyone heard of this? They do it for airplanes. Any thoughts on this?

I set up a few airplane co-op deals some years back and they worked out OK.

A lot depends on the integrety of the parties involved. (i.e, you need to be a good at judging people) and/or they need to be well known friends.

We used to have 2 sets of costs:

fixed, which could be capital costs insurances and parking

hourly, which would be fuel and oil.

Repairs could be related to direct wear and usage and be shared on hourly basis, but some could be part of fixed such as annual inspections.

Co-ownership is like a marriage.
Some folks are honest and never cheat while others cheat as often as they can get away with it.

I have co-owned a bulldozer without any problems at all.
Also airplanes as well.

Perhaps I am just lucky or have the finest of friends. Knock wood!

 

[Farmwithjunk]

Anyone heard of this? They do it for airplanes. While a tractor doesn't cost as much as a plane it's still an expensive "investment". Renting one at $250 a day adds up but if I bought one it would sit 28 days a month.
You'd have to have a contract spelling out maintenance and user damage issues but I would think it could be worked out.
Any thoughts on this?

Partnership agreements can be OK, or they can be the worst thing you've ever been involved in. And you won't know until it goes sour, just how good or bad.

Marriage is a partnership. I don't know anyone who got into a marriage with the thought it was going to fail. Yet they do. Quite frequently.

I like to fish. 10 years ago, my #1 fishing partner and I decided to buy a boat together. I haven't spoke to him in almost 9 years now. That's how good that worked out.

You play the game and take your chances. Just don't be shocked when the wheels fall off.

Just like a "pre-nup", have a predetermined path to dissolve any partnership.

 

[MrJimi]

Anyone heard of this? They do it for airplanes. While a tractor doesn't cost as much as a plane it's still an expensive "investment". Renting one at $250 a day adds up but if I bought one it would sit 28 days a month.
You'd have to have a contract spelling out maintenance and user damage issues but I would think it could be worked out.
Any thoughts on this?

Yes $250 adds up, another way to look at it is
No storage
No maintenance
No breakdowns
No parts to buy
No insurance
No tired machine

$ 250 X 12 = $3,000 per year
Food for thought
Jim

 

[Birdhunter1]

There are only two people I woudl co-own a piece of equipment with. Reasons there are two people is you have to consider the other owner has as much right to it as you do, with that thought alone you want the other owner to operate equipment safely, properly, not severely overload it, help maintain it (by that I mean if you grease everything properly, check fluids, check tires etc that if you did it or the other wonder did it you'd trust it to be as good or better work than yourself), decide to not "loan it to people" without one of the owners present (ie: if my uncle wants to borrow it that's ok but I (or the other woner) come with it).

Buying costs, are you financing or buying cash? How financially stable is the other person?

Maintenance and repairs: Who is the mechanic of the twosome, not who thinks they are but who is? Determine who is the smarter of the two and you've got a great start already! How are costs divied up? Who's resposible for what when it breaks when you use it or he uses it?

Now earlier I said there are two people who I'd co-own equipment with, I shoudl have said three, anyway one is my dad the other is a good friend who farms about 2000 acres and the third is my uncle who lives on the other side of the farm. My dad and I are in a little bit of everything together. My buddy the farmer also owns a hunting club I guide at and I work on his farm often during harvest and planting season and off an on with various things.

Currently my buddy the farmer and I are looking at buying a Bobcat together, we use the same banker and when I have talked to the banker he has said just tell me how much. Anyway between us we've got the knowledge for repairs and maintenance (I'd say he has the upper hand in this department due to his 40 years of farming vs. my 26 years of living). As far as costs we've decided we'll split 50/50 on repairs, when we use the machine ourselves we are probably going to say every machine hour you owe $10 to the fund, obvioulsy if we hire out with it (like snow removal) we'll have devised a way to work that out (currently we haven't).

Basically I am saying I will only co-own something with someone who I know is going to treat it and takecare of things in the same manner that I will.

 

[oldsmoboat]

Thanks for the input, I appreciate it.

 

[gbick]

Oldsmoboat, by your username, I assume you are an Olds fan. I am deep into a body-off-frame of a 1968 Olds 98.

 

[oldsmoboat]

Oldsmoboat, by your username, I assume you are an Olds fan. I am deep into a body-off-frame of a 1968 Olds 98.

I've had this username since about 1996 when I started restoring a 1975 jet boat with an Olds 455. I've gotten 7 good seasons out of it but it just died on me. It has zero compression in two adjacent cylinders so I suspect a blown head gasket. I am going to sell it but I'll keep the user name.

 

[firemanpat2910]

It is "do able" if you partner with the right person. I would think that the more partners you had the more complicated it would be. I have shared ownership on a few things, but not a tractor. The 2 guys I bought my tractor from had a great arrangement. Each had their own tractor and "mine" was a spare that some one else was selling. The reason I bought them out was so they could partner into a new 4 wd JD w/FEL. They never had any issues about who owed what, but each were very honest, responsible men. I have partnered with one of them on a few high dollar seldom used but just gotta have tools.