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  1. #1

    Join Date
    Jul 2003
    Posts
    271
    Location
    Honeoye Falls, NY
    Tractor
    Case 580D Backhoe, NH TC40D SS, JD 450BC dozer, Ford F700 dump

    Default Tractor Depreciation Schedule

    I thought some might find the attached interesting. Based on comments made in a my related thread on prices of NH and JD being very close to one another, I thought I would try to get some sense on the cost of ownership / depreciation.

    I am an economist by training, so I tend to get hung up on trying to put numbers to something. The numbers in the table came from Machinerylink. I welcome your interpretation as I have mine. At the end of the day, there are so many other things that affect the purchase decision (as has been been pointed out to me by the TBNers, and these numbers represent average values for good equipment (defined?).

    Some observations based on the limited information (with all the caveats that should imply [img]/forums/images/graemlins/wink.gif[/img] )
    New Hollands tend to hold their value pretty well on a relative basis.

    Enjoy,
    Larry
    Attached Images Attached Images

  2. #2

    Join Date
    Jun 2003
    Posts
    233
    Location
    Banks, Oregon

    Default Re: Tractor Depreciation Schedule

    Wow! It looks to me like there is no significant difference between the big 3 brands when it comes to depreciation. This is good info - thanks for compiling and posting it!

  3. #3
    Platinum Member
    Join Date
    Jul 2003
    Posts
    531
    Location
    ME
    Tractor
    John Deere 3320 eHydro with 300CX FEL

    Default Re: Tractor Depreciation Schedule


    Great spreadsheet but it seems to be lacking some of the more popular tractors. I would be curious to see how NH stacks up to the kubota B Series and the JD 4100 & 4200 Series.

  4. #4

    Join Date
    Jul 2003
    Posts
    421
    Location
    East Central Mo
    Tractor
    TC40 16LA FEL w-QT & 758c BH

    Default Re: Tractor Depreciation Schedule

    Larry_Van_Horn:

    If you're into this kind of stuff, you might pick up a copy of Used Tractor Price Guide (published annually by Intertec a/k/a Primedia at:1-800-262-1954 or Primediabooks.com). They cover tractor prices going back to 1939 obtained from auctions and other sources and give 3 prices for each model depending on condition i.e. fair/average/good. They include info such as serial #s for the various model years.

    Since you are looking at the TC40, you might run a schedule on the TC40 and the Ford/NH 1920 (same engine). As your chart shows, the NH is comparable to the JD (and KUB). For any of the majors, the main difference is condition. Frankly, I was surprised the JD wasn't better since they have such a "reputation" for high resale.

    If you are an economist by training (as you said) you might run a cost schedule in gold dollars (i.e. 1/20 oz gold=$1.00 in paper money - that isn't precise, I know, but its close enough) running back in time. I have charts measuring costs in gold dollars and costs in man hours at "prevailing" wage going back about 70 years. Prices are rather high right now, i.e. in ounces of gold the cost of automobiles (and tractors) will most probably decline in coming years. The TC40, roughly comparable to an old 8n or Jubilee but a little heavier duty, is much higher today and will almost certainly drop in coming years.

    JEH

  5. #5
    Super Member
    Join Date
    Dec 2000
    Posts
    6,737
    Tractor
    JD 8320 MFWD, JD 6415 MFWD, FEL, and cab, John Deere MFWD 4600, John Deere 4020, John Deere 4430, John Deere 455 mower, Deutz, and Gehl 4610 perkins skidsteer

    Default Re: Tractor Depreciation Schedule

    Now you need to factor in the true cost of ownership. Figure what you will be doing with the tractor. Take that by prevailing rates for that work in your area. Figure in your time value and then you will actually see what the true cost of that tractor is.

    The way you are figuring is like figuring for a car. A tractor, usually, is a piece of equipment to save you money, make you money, and/or save time.

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