JD 755 Question

[sagaponack]

Broke down and bought a 1993 JD 755 with tiller, brush hog, FEL, PH Digger, rake, and finishing mower at a great price. I am sharing it with a landscaper 50/50 (big mistake).

My question is as follow:What is the useful life of this machine in terms of total hours? What should we cap the hours per year that he can use?

We are splitting routine maintenance.

Rob

 

[Von]

Rob, Why the split? Where will it be stored and who is to pay for repairs? I wouldn't get involved in a deal like that ever! Sorry thats just me. He will be using it to make money and using it much, much harder than a home owner would. Plus he may have others driving it who don't know how, or don't care. If it was me I would either buy him out right now, or sell my interest in it now and find another tractor.

 

[sagaponack]

You are probably right. Unfortunately, it is too late. But I will try to convince him. How many hours a year is normal? What is the life of this tractor in hours?

Rob

 

[Von]

Rob, I put about 120 hours a year on my tractor between my two properties. I have five acres of yard at home and rough cut 2 1/2 acres at the other house. I think most home owners are good for about 60-100 hours a year.

 

[beenthere]

Back again. As a suggestion, set up a plan to each pay rent based on the hours used. Keep the payment in a savings account that will be used for all repairs. If something is needed before there is enough money in the pot, then use the hours used to divvy up what is owed. Their is still a risk and potential for hard feelings, but it can be a start before you figure out how to get out from under such a deal. A rental place can give you some figures on charge per hour. I put on about 50 - 60 hours a year. Good luck.

 

[RoyJackson]

Iam sharing it with a landscaper 50/50 (big mistake).

Is your partner in this venture a professional landscaper?

If so, he'll very likely be putting more hours then you will (assuming you are using strictly as a home owner).
Since you're already sorry you got into this deal, can you get out of it?
Do you have anything in writing that solidifies the deal?
If not, you might want to rethink the situation.
Also, are you at all liable if he has an accident at a jobsite. Will he be allowing any others (his work gang) to operate the machine? Should his business go under, is the tractor on his books as an asset (then it could be seized in a bankruptcy)?

I may be being too cautious or paranoid (watch the X-Files too much!), but I would want those answers before I ventured too far in the endeavor.

All that said, I'd base any repair/maintenance costs on hours used by each partner...a ratio, perhaps (i.e. he puts 10 hours on, you put 5...he'd pay 2/3rds the cost of repairs. Any insurance should be paid by him...your insurance would be covered under your homeowners policy, most likely. However, if the machine is used for commercial work, your homeowner's policy may not...probably won't...cover any damage whatsoever.
This might give you an out, if you want out.

And, lastly...can you back out of this situation if it becomes apparent it's not working? I hope he's not a relative!


Now, my machine is a 1991. It had 600 hours on it when I bought it in 2001...works out to 60 hours per year.

 

[Golfgar4]

Rob,

You've already received very good advice in the previous posts. I would add that if it's too late to get out of this arrangement, then at least get your "partner" to sign a hold harmless agreement that relieves you of any responsibility for something that happens while he or any of his employees are using the machine, regardless of whether it's being used in his business or for his personal use. You need to ask yourself what if he takes the tractor home to use around his place and damages someone elses property?

Because there seems to be a great potential for the machine being used without your knowledge or control, you need to do everything you can to protect yourself.