A tractor loses ____% of it's original value when...

[ToadHill]

My 8N went for $750 in 1949 Now it's worth three times as much.

 

[flusher]

A Farmall Cub in 1947 could be bought for $545, after 60 years you can buy one for $2500 +/- 1500 depending on condition.

So lets see, after 60 years it has "lost" a negative 458% of original price or in non-accountant terms, it has gained 458%.

Multiply 1947 dollars by 6 to make a valid comparison to today's dollar.

 

[IslandTractor]

Real example: Paid $14600 to dealer #1 for 2004 Kioti CK20 HST with 28hrs, KL120 FEL and KB2365 backhoe in Sept 05. Traded to dealer #2 two years later with 185hrs on the clock for $12500 which included pickup. That is about 86% of my original cost. THe original cost had extra discount because the tractor had 28hrs.

In my case my remote location made private sale impractical and I was happy with the dealer's sight unseen offer. I imagine I could have gotten $500-1000 more if I'd advertized and waited for a month or so but it would have cost me almost that much to get the tractor off the island and home.

 

[geedub]

Thanks Island Tractor, your real world experience helps.

Multiply 1947 dollars by 6 to make a valid comparison to today's dollar.

Great point flusher, but probably too conservative, at least according to this:Measuring Worth - Relative Value of US Dollars

"In 2006, $1.00 from 1947 is worth:
$9.02 using the Consumer Price Index
$7.52 using the GDP deflator
$0.00 using the value of consumer bundle
$15.71 using the unskilled wage
$25.89 using the nominal GDP per capita
$54.03 using the relative share of GDP"

 

[rvaitor]

1. A tractor loses __25_ % of it's monetary value the day it is purchased.

2. A well maintained tractor loses _35_% of it's $ value when it has logged 200 hours and is 1 model year old.

3. A well maintained tractor has lost __40_% of it's $ value when it has logged 400 hours and is 2 years old.

4. The same tractor has lost _45_% of it's value when it has logged 600 hours and is 3 years old.

Since no one put any numbers in I thought I would. I pretty much think a well maintained tractor will drop initially and then tapered at a decreasing rate after the first year or so. I don't see many nice well maintained tractors bringing much less than 50% of the original selling price regardless of hours. I've had decent luck trying to buy left overs or lightly used pieces and reselling them at a small gain or small loss. I tend to like the brands that are not as popular but good quality - Mahindra for instance - GREAT tractors and if you can find a nice used one at a bargain jump on it.

Currently have a Kioti that was used 72 hours when I got it which I like primarily because of the Cab and service at West End Tractor in Vale, NC.

 

[MessickFarmEqu]

For a major line - Kubota/NewHolland/Deere

1. A tractor loses __20_ % of it's monetary value the day it is purchased.

2. A well maintained tractor loses _20_% of it's $ value when it has logged 200 hours and is 1 model year old.

3. A well maintained tractor has lost __30_% of it's $ value when it has logged 400 hours and is 2 years old.

4. The same tractor has lost _35_% of it's value when it has logged 600 hours and is 3 years old.

For a minor line - Kubota/NewHolland/Deere

1. A tractor loses __35_ % of it's monetary value the day it is purchased.

2. A well maintained tractor loses _40_% of it's $ value when it has logged 200 hours and is 1 model year old.

3. A well maintained tractor has lost __45_% of it's $ value when it has logged 400 hours and is 2 years old.

4. The same tractor has lost _50_% of it's value when it has logged 600 hours and is 3 years old.



Thats about what we do anyway. As has been said, brand is very important. In my area the minor lines have almost no detectable presence and customers who are aware that they exist, are scared to buy them. The resale is not nearly as good, and thats always reflected in the re-sale price.

 

[frank_f15]

SORRY but i can't help you with the ### I personally buy anything (tractors included) as what is the best price i can get for the tractor that will do what i want. when or/if it no longer does what i want then i will sell for the best price i can get. does that make sense? some may have different views.

 

[geedub]

The main reason I asked this question is that someone who I respect (from a non-tractor forum) said that tractors lose 40% of their value the day you buy them. This is an intelligent person, but I think he must have been off on this one.

 

[RoyJackson]

Based upon a very short and focused study I did on early through mid 90's Deere CUT's (I was looking mostly at 670's, 770's, 855's and 955's), the prices drop pretty steadily for about 5 years, then flatten out (depreciating much more slowly after 5 years). Those machines I listed lost about 25% of the original price (based upon dealer asking prices) by the end of those 5 years.
I'd guess you take the biggest hit in depreciation the first year (since you're up against brand new machines with better financing).
I reckon you could use this same study for Kubota or New Holland (maybe Massey and others) with some caveats.

That doesn't answer Geedub's question as they were written, but should give one some idea of what to expect.

 

[IslandTractor]

The main reason I asked this question is that someone who I respect (from a non-tractor forum) said that tractors lose 40% of their value the day you buy them. This is an intelligent person, but I think he must have been off on this one.

Maybe he was talking about gasoline powered "garden tractors". e.g Craftsman.

My Kioti lost 14% of purchase price over two years/180hrs.