Libertine
Gold Member
Don't know what you guys do New Year's day, but I spend it entering expenses, doing a balance sheet etc. Bought a new NH TC40 a year ago and thought real number costs/benefits for its first year might be of some interest. Guess this could go under owning/operating, or brand specific, but the general principle holds true for any tractor.
Costs: Purchase price, including sales tax, including numerous options/additions, FEL & BH (with a couple of buckets) = $29,119.27. I credited cash account used for purchase & debited equipment account. Initial depreciation, credit equipment account, debit depreciation expense = $9,119.27. Although it might very well bring more than $20k I am conservative. Operating expenses, including fuel, $408.38 (which includes filters, etc on hand for 200 hour service). No repairs except for $30 or so for broken BH control pieces. Total cost for year $9,527.65. Use was 164.1 hours which works out to $58.06 per hour.
Benefits: I had been renting equipment with an average daily use of 6 engine hours M/L. 164.1 hours divided by an average useage of 6 hours = 27.35 equipment rental days saved. At an average of $200 per day (bit less for skid steer, more for BH) $5,470 saved. I realize I could rent cheaper by week or month, but unless took time away from business that's not practical for me. Having it on hand allowed regular use a few hours in an evening, etc. In addition, I received $395 for a job I would not have accepted if I'd had to rent (used about 2 tractor hours). Other paid work was accepted but would have certainly involved renting and thus is included in the credit in rental fees saved.
Gains: Majority of tractor hours spent digging out tree trunks, spreading 100s tons of gravel, digging/moving dirt from one side of property to other (to level). Net loss to date in tractor account around $3,500. The big depreciation hit was taken in 2003, so depreciation hit for 2004 should be minimal. Increase in value of property from work done is guesstimate, at least $10k minimum, probably $15k and possibly $20k.
Other expenses: 7 implements/attachments were purchased during the year 2003 for $3,439.11, some for the project, others for future use. These were added to implement account which now totals $5,422.56 and includes 7 other implements used on a previously owned Farmall Super C. Implement account includes items ranging from a Danuser F series PHD, Landpride Rollover box blade through pallet forks and cutoff saw. Have not charged implement costs to tractor use since these can be "taken with me" if switch tractors.
Biggest surpise: Records show only 81.1 gallons of fuel purchased for a net use of 71 gallons. I keep thinking I must have forgotten to write down a few fuel purchases since this works out to less than .5 gallons per hour. This seems unreasonably low given the amount of work done. I admit I run the tractor at max torgue rather than max RPM (unless I need the hydraulic flow such as for BH use, or, PTO speed). But, even if I forgot to write down a couple of purchases, the fuel use is extraordinary. Fuel use was less than $ .75 per hour.
In any event, the above reflects an actual, real world, experience with one particular compact utility tractor. I suspect other major brands would have worked out about the same. It may prove of some benefit for prospective CUT purchasers.
JEH
In any event
Costs: Purchase price, including sales tax, including numerous options/additions, FEL & BH (with a couple of buckets) = $29,119.27. I credited cash account used for purchase & debited equipment account. Initial depreciation, credit equipment account, debit depreciation expense = $9,119.27. Although it might very well bring more than $20k I am conservative. Operating expenses, including fuel, $408.38 (which includes filters, etc on hand for 200 hour service). No repairs except for $30 or so for broken BH control pieces. Total cost for year $9,527.65. Use was 164.1 hours which works out to $58.06 per hour.
Benefits: I had been renting equipment with an average daily use of 6 engine hours M/L. 164.1 hours divided by an average useage of 6 hours = 27.35 equipment rental days saved. At an average of $200 per day (bit less for skid steer, more for BH) $5,470 saved. I realize I could rent cheaper by week or month, but unless took time away from business that's not practical for me. Having it on hand allowed regular use a few hours in an evening, etc. In addition, I received $395 for a job I would not have accepted if I'd had to rent (used about 2 tractor hours). Other paid work was accepted but would have certainly involved renting and thus is included in the credit in rental fees saved.
Gains: Majority of tractor hours spent digging out tree trunks, spreading 100s tons of gravel, digging/moving dirt from one side of property to other (to level). Net loss to date in tractor account around $3,500. The big depreciation hit was taken in 2003, so depreciation hit for 2004 should be minimal. Increase in value of property from work done is guesstimate, at least $10k minimum, probably $15k and possibly $20k.
Other expenses: 7 implements/attachments were purchased during the year 2003 for $3,439.11, some for the project, others for future use. These were added to implement account which now totals $5,422.56 and includes 7 other implements used on a previously owned Farmall Super C. Implement account includes items ranging from a Danuser F series PHD, Landpride Rollover box blade through pallet forks and cutoff saw. Have not charged implement costs to tractor use since these can be "taken with me" if switch tractors.
Biggest surpise: Records show only 81.1 gallons of fuel purchased for a net use of 71 gallons. I keep thinking I must have forgotten to write down a few fuel purchases since this works out to less than .5 gallons per hour. This seems unreasonably low given the amount of work done. I admit I run the tractor at max torgue rather than max RPM (unless I need the hydraulic flow such as for BH use, or, PTO speed). But, even if I forgot to write down a couple of purchases, the fuel use is extraordinary. Fuel use was less than $ .75 per hour.
In any event, the above reflects an actual, real world, experience with one particular compact utility tractor. I suspect other major brands would have worked out about the same. It may prove of some benefit for prospective CUT purchasers.
JEH
In any event
