Hourly cost to own/operate tractor?

[jeff9366]

I have had one KTAC claim against each of the two new Kubotas I have purchased. $3,000 for the two repairs in total, which KTAC paid less, $250 X 2 = $500 deductible.

I speculate that KTAC is profitable because the average compact tractor owner only operates around eighty engine hours per year.

I operate 300 engine hours per year and with every hour there is additional risk KTAC will have to pay a claim.

(Perhaps offset by experience. I have not damaged a tractor twice in the same circumstances.)

 

[k0ua]

Probably not much more that I can add here that hasn't already been said.

I don't own a trailer for my tractor for the very reason of (guilt?) not helping out my brother in laws or friends. I just don't want to deal with the fallout if something should happen. I suppose if I was financially independent and I could fix or buy another one without concern, it would be another story.

I do help, and gladly offer when I see the need, my next door neighbors where I can drive over with my tractor and do the work vs. them jumping on and learning. We all know that pretty much nobody treats a borrowed tool as good as the owner.

Even if you did agree on an arrangement should anything go wrong, big or small, most likely your friendship will suffer. Not worth it to me. I don't want that burden of guilt.

I have toyed with the idea of going in on a boat with someone. Short term could be great, but my gut says that won't be a happy long term relationship.

I see loaning your tractor out for a short term with a fee is just a big gamble. Eventually, something is going to happen.

I have exactly the same attitude. I WILL NOT own a trailer for my tractor, AND I will not allow anyone with a trailer to come get my tractor. I have done jobs for neighbors. In one case, the work was benefiting me because I was hauling off decorative rock and I got to keep the rock. He also gave me a few bucks for fuel.

Second case has went as follows. I worked 14 hours on neighbors place on my tractor. (where my tractor goes I go). I valued the work at $20 per hour.
So far he has worked (manual labor) 8 hours at my place, with promises to do more now that the weather has turned cooler. He can either continue to work off the debt with manual labor on my projects or he can pay me the remainder off in money at the $20 rate. But I am not loaning my tractor out to anyone, friend or foe or especially relative.

DO NOT LOAN OUT YOUR TRACTOR. Do the work yourself to help them for $0 or what ever you want to charge. I thought the barter/work out thing would work out. We shall see. So far so good.

 

[jeff9366]

Parts caused by abuse and I don't feel like its fair to put those on the hourly cost. 3 rods on backhoe cylinders. That was about $1000 and caused by previous owner leaving backhoe attachment in field. Blown power steering hose. Cost me $7 but maybe $100 for oem. Bent loader cylinder $700.

A cost is a cost.

 

[4570Man]

But some cost have no relation to the hours.

 

[newbury]

LD - Good analysis -

As others have already pointed out the pros and cons of renting out to a "friend" vs loaning for free vs just doing the work for them....either free or going rate.

So Im not gonna touch any of that. I am gonna simply speak about operating costs. And your tractor is different than mine so numbers may be a bit different...but you have to account for ALL expenses....even depreciation. Because depreciation IS real. you have a $20,000 machine with 800 hours in the year 2018......in 10 years, in 2028, with 5000hrs on the clock....do you honestly think it will still be worth $20,000??

So my tractor....MX5100 HST with loader
$80 HST filter needed every 200hrs..............$0.40/hr
$55 transmission filter every 400hrs..............$0.14/hr
$32 air filter every 400hrs............................$0.08/hr
$60 engine oil and filter every 200hrs............$0.30/hr
$152 for SUDT hydraulic oil every 400hrs.......$0.38/hr
$400 for front tires that last only 1000hrs.......$0.40/hr
$800 for rear tires that last 2000hrs...............$0.40/hr
$600 for yearly insurance 200hrs...................$3/hr (would be less per hr if you use it for more hours in a year. But more if you use it less. Most people only put 100hrs or less a year on)
I burn 2.5 gal per hour of fuel. $3.60/gallon.....$9/hr
Depreciation. Assuming tractor lasts 5000hrs before something catastrophic basically "totals" the tractor I paid $20,000 for. Thats $4/hr

I am up to a tad over $18/hr to operate and me doing all the service work.

So yea.....jeff's $20/hr is just about spot on.

Most dont like to "think" that every time they hop on their tractor they are actually costing ~$20 per hour. Because after all, just put a few gallons of fuel in it here and there right. How much can that be?

But your fluids and filters ARE a known expense. And this isnt everything either. Battery every 5-8 years? Grease? 3ph pins and clips that get lost? Light bulbs that burn out?

Some dont like to think about tires....but they do wear out. Find out what they cost...and approx how long they will last you. Its a REAL cost that MUST be factored. And this isnt accounting implements either.

And NONE of this accounts for the unexpected issues. Tire puncture? Blow a hydraulic hose? Starter craps out? Weeds yank your dipstick out and blow your engine up costing you $8000 to replace

And for all of you who have not read LD's 333 post thread on motor replacement, you should. https://www.tractorbynet.com/forums/parts-repairs/402625-blew-up-kubota-motor.html

It's one thing when it happens to YOU the owner and it's YOUR fault. It would probably be termination of friendship if your friend blew up your tractor because he got into some weed.

 

[LD1]

What does your separate insurance cover? I really only cared about theft or fire but my my agent said it also covered damage to the machine caused by accident. Of course there’s 1k deductible so it would take a major problem before they pay.

It covers liability off property. It's just a general business insurance for the work I do.

But weather you are doing work, loaning, renting, etc....if your tractor is off property you need to have some kind of insurance IMO. And what various policy's cover is different, but similar in cost. Ktac is a good example

 

[LD1]

LD - Good analysis -


And for all of you who have not read LD's 333 post thread on motor replacement, you should. https://www.tractorbynet.com/forums/parts-repairs/402625-blew-up-kubota-motor.html

It's one thing when it happens to YOU the owner and it's YOUR fault. It would probably be termination of friendship if your friend blew up your tractor because he got into some weed.

Pretty much to summarize that.....$h1t happens. Its real easy to say "that would never happen to me as I pay attention" but it did

Had this not happened to me, but rather to someone else using my tractor, I would have been in that camp too. Furious like "how could you not notice that,".

Some things just happen. Just because they happen while someone else is using it doesn't mean it's their fault. So it's a grey area that would be hard to come away from without hard feelings one way or another.

It's a tough decision about loaning out equipment. Which is why I wanted to speak just to the costs associated with operation and not weather one should or shouldn't loan out a tractor.

Bottom line....if you cannot afford or are prepared to repair or replace the equipment in a worst case scenario ... Keep it at home

 

[Leejohn]

My L4240 has 1532hrs and has cost me $19.47pr. hour. Not counting my time and I had to split it two times. This is for tractor, fuel, oils, and filters. No tires yet. I didn't check the other two.

 

[dragoneggs]

My L4240 has 1532hrs and has cost me $19.47pr. hour. Not counting my time and I had to split it two times. This is for tractor, fuel, oils, and filters. No tires yet. I didn't check the other two.

I have 400hrs on my BX25D. I am afraid to run the numbers but rough guess, $50 per hour. But it is going down!

 

[4570Man]

My L4240 has 1532hrs and has cost me $19.47pr. hour. Not counting my time and I had to split it two times. This is for tractor, fuel, oils, and filters. No tires yet. I didn't check the other two.

Wearing out the fronts isn’t that unusual but I’ve never seen the back tires wear out unless it was ran on the road a lot. If that’s the case they’re good for 2400 hours before they become racing slicks using my backhoe for reference.