How much will that tractor cost, the true price of ownership.

[Snobdds]

Why are you only focusing on cost. Where is the benefits to the equation that then result in a net value.

In your little example, it costs 1,500, but the benefit might bring in 5k. So the tractor never actually cost you anything. Even with inflation, your ahead.

In business we have formulas to determine these things and every one of them weight the costs vs the benefits to get to a net value.

 

[dodge man]

I like to figure that kind of thing also. In the case of my tractor I like to figure a rough cost per hour. Other things like my bicycle, how much per use. I bought an e bike for $3200. If I ride it twice that’s $1600 per ride, not very cheap. I’ve ridden it about 130 times in less than a year, so that seems like a better investment. Some things like a tool, might only get used on rare occasions but it might be very valuable at the time. It all depends on your perspective.

 

[Torvy]

Just another side bar to try to infer that JD is somehow superior because the resale value is higher. That has been debunked because the initial cost is higher. Similar equipment treated in a similar manner holds value in the same proportion. We get it you like your tractor. So do most people. No need to initiate paint wars.

 

[LS Tractor Owner]

Thats why you get a tractor like the John Deere, or similar that hold their value, with low depreciation and good residual value. In this case a 3025D with a FEL with 10 years/1000 hrs will sell for much more than $10,000, so you get greater value for your money than lets say a comparable Bad Boy or Branson tractor..

As Torvy stated, the depreciation/ resale issue has been debunked many times over.....
A) The $34K tractor looses 20% = $6800, so resale is $27,200
B) The $24K tractor looses 20% = $4800, so resale is $19,200

Who lost more money? Technically, owner A did loose more because he paid more.... and lost more, even though the "percentage of loss" was the same

This, of course, is only looking at the initial costs.... not considering any repairs, warranty, etc....

 

[WVH1977]

My true cost of ownership is the shear joy, work and satisfaction of jobs completed that I have accomplished with my tractor. I have done thousands of dollars worth of work with my tractor over the last 16 years that have more than paid for the tractor. Only at 700 hours now and running strong.

Tree fell over on the driveway last weekend. It is shared by 5 houses. Went out with the grapple and moved all of it. Neighbors were happy and grateful. Money cannot buy that type of satisfaction for me. I live for the tree over the driveway!!!

Like my wife says "You really love that tractor!!!". Yes, yes I do.

 

[Carl_NH]

My true cost of ownership is the shear joy, work and satisfaction of jobs completed that I have accomplished with my tractor. I have done thousands of dollars worth of work with my tractor over the last 16 years that have more than paid for the tractor.

Totally agree. My B21 has done 700 hours of work over 20 years if hired out probably cost at least $60K. But to the real numbers:
- Cost of machine $25K
- Cost of Fuel/Repairs and Maintenance $5000
- Cost of Storage and Insurance - Negligible
- Cost of Attachments: Snowblower, Splitter, Forks, Debris Forks, Rake, $6000.
- Total cost for 20 years $37-38,000 or $1900/year or $55/hour
- Residual Value Today Tractor and Attachments $18,000
- Real Cost for 20 Years $18,000 or $900/year if I sold it today

It's there when I need it, does what is asked, is easy to maintain, and never complains.

 

[oosik]

I have never worried/considered - cost of ownership. It's a simple fact - without a tractor, I don't get out my mile long driveway in the winter. I don't get any of my projects started or completed.

Like Carl says - it's there when I need it and that's what I ask.

If you are SO CONCERNED about cost of ownership - you will never enjoy the use.

 

[TimberFarm]

Totally agree. My B21 has done 700 hours of work over 20 years if hired out probably cost at least $60K. But to the real numbers:
- Cost of machine $25K
- Cost of Fuel/Repairs and Maintenance $5000
- Cost of Storage and Insurance - Negligible
- Cost of Attachments: Snowblower, Splitter, Forks, Debris Forks, Rake, $6000.
- Total cost for 20 years $37-38,000 or $1900/year or $55/hour
- Residual Value Today Tractor and Attachments $18,000
- Real Cost for 20 Years $18,000 or $900/year if I sold it today

It's there when I need it, does what is asked, is easy to maintain, and never complains.

Consider if you had to hire somebody to bring their equipment and run it for your work.
Nobody is even going to load a piece of equipment on a trailer for less than $200, much less actually operate it on a job site. Multiply those hrs you rang up on your machine by $200.

 

[Jstpssng]

If I figured cost of ownership on everything that I own or have owned I'd be living in a one room efficiency, living on TV dinners.
How do you place a value on enjoyment? I know that some government agencies do just that, yet they also apply a number to human lives.

 

[John0829]

Can I deduct the tractors as a medical expense? physical therapy? I feel much better after spending a few hours in the seat, so much more effective than the chronic pain scripts I'm on.