Expected Depreciation in Used Tractors?

[ning]

Minor nit about math in some previous posts: inflation is multiplicative, not additive, because the effects compound year over year.

If you buy something for $10k, and experience three years of 2%, one of 8%, one 7%, don't add, instead you do this math:
Total inflation = 1.02*1.02*1.02*1.08*1.07
= 1.2263319648
This tells you there's been 22.6% inflation, not the 21% you'd get from adding, so your five-years-ago $10k would now be $12,260 rather than $12,100 (huge difference lol)

If you don't think this is a big deal, consider 8% inflation over 10 years. Adding, you'd get 80%. Compounded correctly gets you 116%.

 

[HAR]

Good catch pointing out that inflation is multiplicative! Tell the powers that be that us "poor" folk on SSA are tired of getting yearly COLA's which barely pay for the price of a cola, after they say, "Oh! They don't need an increase. They got x.x% last year!" COLA's come no where near keeping up with inflation, and with every COLA increase there are matching increases in Medicare deductions. Luckily for me, my tractor was bought and paid for before I retired, and again, luckily for me, its high quality and durability have prevented any high cost maintenance bills. If I could only afford to put fuel in it !

 

[Blue Mule]

22 months ago I bought a New Holland Workmaster 40 with FEL, hydro trans, and R4 tires. Just for kicks and giggles I checked the SAME tractor today and the price has gone up about $8,000. That's a 30% hike in less than two years. Absolutely insane. With new tractors reaching insane pricing, I wouldn't expect used tractors to lose value in the short term.

 

[DaBear3428]

Asking, or actually selling? I see a lot of crazy asking prices on cars, some people confuse those for selling prices, in casual conversation.

I hear you I just do not intend to waste any of my time haggling with so dude that wants 20% more for some beat up junk than i can buy it for new. now if it is a hot woman that is another story (but then again the divorce would cost me much more not to mention the hospital stay when my wife found out).

If the listing price is not close to what I think is reasonable i never even call to check further.

 

[DaBear3428]

Do you realize Craigslist ads are free?

not any longer for autos and maybe farm equipment. not sure about the farm equipment but autos are $5 to place and add or renew.

 

[newbury]

not any longer for autos and maybe farm equipment. not sure about the farm equipment but autos are $5 to place and add or renew.

I thought the thread was about tractors (farm equipment).
from CL (link).

All craigslist postings are free, except for:

Job postings in US and selected CA areas—$10-75 (fee varies by area)
Apartment rentals in Boston, Chicago, and NYC areas—$5
Commercial real estate in the US—$5
All for sale by-dealer categories in the US—$3-5
Cars/trucks by-dealer in the US, Vancouver BC—$5
Furniture by-dealer in Vancouver BC—$3
Cars/trucks, RVs, and motorcycles by-owner in the US—$5
Gigs in US and selected CA areas—$3-10
Services in US and CA—$5