Are tractors and equipment a good investment right now?

[Yander]

Over the past year I have been spending a lot on equipment. New tractor, many new implements, also sold some implements and have made money on all of them. But that was last year and this is this year.

I am noticing used prices coming down to the point I see some ridiculous deals on slightly used stuff. I don't want to deplete my savings so I'm actually thinking of financing a used one. I know rates are garbage but I have a long term plan for my equipment which involves at least one of my sons helping me with it and would need a couple of tractors. If those plans do not work out I could easily sell one.

I'm reluctant to finance anything and I don't want to part with any more cash than I've already spent in the past year. Maybe I just stop looking at FB.

Thoughts?

 

[dodge man]

I don’t look at stuff like tractors as an investment. Yes I’m sure you can make money buying and selling them but I buy a tractor because I need/want one.

 

[sea2summit]

I think a lot of discretionary spending is dropping off quick right now. Probably a good time to buy, not a great time to flip.

 

[jeff9366]

What Is an Investment?​

An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth.


An investment always concerns the outlay of some resource today—time, effort, money, or an asset—in hopes of a greater payoff in the future than what was originally put in. For example, an investor may purchase a monetary asset now with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

KEY TAKEAWAYS​

• An investment involves putting capital to use today in order to increase its value over time.
• An investment requires putting capital to work, in the form of time, money, effort, etc., in hopes of a greater payoff in the future than what was originally put in.
• An investment can refer to any medium or mechanism used for generating future income, including bonds, stocks, real estate property, or alternative investments.
• Investments usually do not come with guarantees of appreciation; it is possible to end up with less money than with what you started.
• Investments can be diversified to reduce risk, though this may reduce the amount of earning potential.

I recommend investing in the STOCK MARKET through a no-load mutual fund. A tax deferred IRA will increase your long term return.

Are tractors and equipment a good investment right now ?​

(This is speculation, not investment.)​

 

[2manyrocks]

Looks to me like the general economy is starting to slow down. I wouldn't want to deplete my cash position going into a downturn if there was any issue about being able to maintain liquidity needed to go through it. If you don't actually need it, then I'd be hesitant to buy it.

 

[5030]

Both mine are a depreciable business expense as is all the implements simply because they make me money and we are a registered working farm. If they weren't and we were not, I'd not own ANY tractors or implements.

 

[5030]

I wouldn't want to deplete my cash position going into a downturn if there was any issue about being able to maintain liquidity needed to go through it.

Problem with that is your cash liquidity is worth less every day. I fear this country is heading for a major bust and soon.

 

[Yander]

Yeah, I should probably hold off on buying anything else right now to keep my marriage together also. I do not NEED another tractor now. It is that I plan to need one in a few years and was thinking of capitalizing on some bargains. But right now may be a good time to not use my cash or create new debt.

Thanks for the honest feedback.

 

[workinonit]

Both mine are a depreciable business expense as is all the implements simply because they make me money and we are a registered working farm. If they weren't and we were not, I'd not own ANY tractors or implements.

Typically, you depreciate a piece of farm equipment over a designated period of time so that once it is completely depreciated you can replace it with new. I depreciate everything over 5 years, buildings, tractors, trucks and equipment. Once it is depreciated, it is a dead expense.

 

[oosik]

Hmmm - I've never considered a tractor or implements as an investment. I buy what I need and use it.