Are tractors and equipment a good investment right now?

[jyoutz]

S
SF Bay Area this week...

It’s a CA thing.

 

[ultrarunner]

California, Hawaii and Washington State often vie for high gas prices...

Yet California had crude and refineries...

Chevron world headquarters is a beautiful now empty campus in SF East Bay as Chevron moved much to Texas... maybe the writing is on the wall as additional hikes in the works?

 

[WM75Guy]

I paid $4.89/gallon in San Diego 2 week ago. If the CARB has it's way, it could go up another $0.65 in the near future.

As Newsom urges refinery controls, California regulators consider hike in gas prices

 

[rScotty]

Those high prices must be a West Coast or California thing. Fuel and gasoline prices in The Colorado, Wyoming, and Nebraska have been reasonable this year. Today I paid $3.15 for regular gas in downtown Denver, but last week was $2.77. Last month it was even less.
Prices also falling for food and mechanical stuff.

 

[jyoutz]

Those high prices must be a West Coast or California thing. Fuel and gasoline prices in The Colorado, Wyoming, and Nebraska have been reasonable this year. Today I paid $3.15 for regular gas in downtown Denver, but last week was $2.77. Last month it was even less.
Prices also falling for food and mechanical stuff.

Yep. A west coast thing.

 

[ultrarunner]

Coming to work this morning I thought I was not seeing right.

Regular $3.85 gallon in SF Bay Area.

Last week I posted over $5 gallon.

 

[kneedeep]

Not a good investment
Everything depreciates in value except dirt

 

[Rookie22]

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?

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?

 

[Rookie22]

Hi there.
Just joined your forum and this is my first post so hopefully I have posted correctly

I am interested in purchasing a subcompact tractor w/ backhoe. I started by visiting dealerships w/ the intention of purchasing a new unit to take advantage of 0% financing and a warranty. The 25hp kubotas, JD’s, and MF’s were all in the $25k-$30k range.

The MF dealer has a used 2018 gc 1720 w/ 98hrs that appears to very well maintained. It appears to have been garage kept bc there is minimal uv damage or rust and eng compartment looks great. It actually looked better than some of the newer units that have been sitting outside at the kubota and mahindra dealerships.
I can get this 2018 gc1720 for $14700 otd. Dealers agreed to throw in a full service to change all fluids which they said was valued at $500.

Do y’all think think this is a good deal? I just don’t know if I should spend the extra money to go new and get the warranty or roll the dice on the used one. Are there any things I should check or be concerned about since it is almost 7 years old? This would be my first tractor so I could use some advice. Thanks

 

[WinterDeere]

Not a good investment
Everything depreciates in value except dirt

It's not so much that they depreciate, but that they appreciate slower than everything else. A case in point:

John Deere M's sold new for $1000, around 1950. Now a 70 year old one brings $4000 - $5000, depending on condition. Not bad, right?

But if you had put the same $1000 in an S&P index fund with dividends reinvested, it'd be worth $871,343.01 today... roughly 194 of those 70 year old Deere model M's.