Tractor Ownership Cycle

[cdaigle430]

Just wondering, I usually trade my vehicles in every 5-6 years and was wondering about how ownerhip cylces on tractors are. I know some folks have pretty old tractors-not just as collectors items but the still use them.

 

[TripleR]

We have tractors made in the 50's and 60's that are used regularly for bush hogging. We have an 87 MF 375 for use in the woods. We do have newer tractors, but they will still be in the family long after I am gone.

If properly maintained, a good tractor will last a lifetime for most non commercial users.

 

[Denwa]

Just wondering, I usually trade my vehicles in every 5-6 years and was wondering about how ownerhip cylces on tractors are. I know some folks have pretty old tractors-not just as collectors items but the still use them.

Daig,
I tend to keep my vehicles until repair costs make further ownership a loosing situation. You know, if it costs more to fix it than to replace it. I've not had my tractor very long, but knowing the general service life of a tractor, which is reportedly just about forever if maintained and not used all day every day and put away wet, I will likely never replace mine because of it's age. I also seldom buy new, as a good used unit is so much less.

*IF* I had a ton of disposable income, things might be a bit different, but function has always driven most of my decisions, not style. I bought what I needed the first time. I doubt my needs will change. If so, I would likely sell or trade in, but that's a different circumstance than you're asking about.

Regards,
Dennis

 

[Dr_Zinj]

It's been a decade since I had access to Air Force Technical Order 36A-1-1301; but if I remember correctly, the serviceable life expectancy for a tractor used for towing aerospace ground equipment was either 15 or 25 years. 15 seems too short but when you get 4 different kids driving them in shifts every day, and they don't always take a whole lot of care of them, that's a lot of wear and tear.

 

[picker77]

I think the depreciation curves are likely very different on a tractor vs a truck or car. After some relatively low (compared to a car) initial decrease in value when you take delivery and put the first hour on a tractor, it will depreciate much slower and in a more linear manner than a car, and model year will have much less effect on used value than will mechanical and cosmetic condition and brand name. All that is of course related to the (I believe correct) premise that the useful life of a tractor in calendar years far exceeds that of a car or truck.

Conversely, a truck or car loses a huge chunk of dollar value the instant it's titled to the first owner, and model year is much more important than condition where used market value is concerned. I paid cash for a new 'loaded' 2001 Silverado LT 2500HD 4wd crew cab Duramax/Allison that is still in like new cosmetic and mechanical condition with 74,000 miles. It's had zero problems and needed no significant repairs since new. I'd probably be totally shocked at how low the blue book value on it is right now, especially considering it would probably cost me $50K to replace it with a new one just like it. I'd be totally insane to get rid of it unless I hated driving it, which I don't. It's a great truck and I've loved it since day one.

 

[smstonypoint]

Just wondering, I usually trade my vehicles in every 5-6 years and was wondering about how ownerhip cylces on tractors are. I know some folks have pretty old tractors-not just as collectors items but the still use them.

Coming at this issue from an (agricultural) economist's perspective, there are procedures for determining an optimal machinery replacement policy. Unfortunately, they require a lot of math.

Here's a link that provides a "quick and dirty" method for addressing the issue.

http://extension.psu.edu/scregion/Agriculture/Farm%20Management/aboutPubs.pdf

Steve

 

[Runner]

For me, something like a tractor is a "permanent" fixture. I'm 52 and plan on having my current machine until I die (unless I get a wild hair and decide I just can't live without a 2720...). I only put 60-70 hours a year on it, so I don't think there's much chance I will wear it out.

I just tend to hang on to things as long as possible. When/if it gets too old for practical work, it will become an "antique". I still have my 1989 JD 185 lawn tractor (working machine) and 1960 Panzer T70 lawn tractor (antique).

I probably have some kind of issue with emotional attachment to inanimate objects that needs to be addressed....

 

[pitt_md]

The tractor I have is well suited for the acres I have. If I stay where I am I will keep it as long as I am able to use it. I don't plan on buying any more land but never say never. In that case I might upgrade if things called for it.

 

[tessiers]

I tend to agree with long term ownership, however I don't believe most tractors sold today will still be working 60 years from now as many old tractors are. Todays tractors are far more complex than the tractors of yesteryear and I think that will shorten their usefull life. That being said I think they have a much longer life span than auto's, I think most will get electrical or electronic problems long befor they wear out. My 1941 Farmall has 5 nessesary wires, 1 to the magneto to ground it out, and 4 to the plugs, all the rest are for convenience, and they are the most aggrevating parts on the tractor.

 

[ModMech]

To me and I think *differenty* than most, the replacement schedule is simple.....

Q1: Is the asset able to perform the task for which it is needed?
......Y = continue
......N = sell/trade

Q2: What is the monthly cost of a replacement?
A = $/mo

Q3: Can the asset be repaired for less than the annual replacement cost ($/month * 12 months)?
......Y = Keep
......N = sell/trade

Q4: Will the new asset cost more or less per month, to operate and maintain, compared to the current asset?
......More = think HARD
......Less = buy

If I can keep an existing asset performing well for LESS than the cost of payments on a replacement asset, I keep it. Generally this means that I keep it until it is total junk and no longer suitable for our family (due to size/capacity etc). VERY rarely can you purchase for less than repairs.

I think of it this way: Payments on a new "whatever" are $450/mo, do we spend that much ore more in operating costs + repairs on the current "whatever"? No, then we keep it!

If "whatever" suffers a major failure and can be repaired for less than 12 times the monthly payments on a "new" "whatever" (and in some cases anything close to 12x) then we fix and keep. If the failure truely is catastrophic, then we replace.

****Note: I should add that we don't borrow $$$, we will gladly accept 0% however. The "payments" are the amount per month we would have to save based on the useful life and cost (ie: $83/mo for a $25k asset that has a useful life of 25 years).

 

[MFRED]

I tend to agree with long term ownership, however I don't believe most tractors sold today will still be working 60 years from now as many old tractors are. Todays tractors are far more complex than the tractors of yesteryear and I think that will shorten their usefull life. That being said I think they have a much longer life span than auto's, I think most will get electrical or electronic problems long befor they wear out. My 1941 Farmall has 5 nessesary wires, 1 to the magneto to ground it out, and 4 to the plugs, all the rest are for convenience, and they are the most aggrevating parts on the tractor.

Depending on what variation of model you get, about the same can be said for a newer one.
If one buys a manual shift,diesel tractor, 1 wire for the fuel shut off, 1 loop for the safety switches & a couple wires to charge, depending on the set-up. All the extra stuff is lights, power shift, power shuttle control, some dummy lights. I've seen compact tractors with 5,000 hours on them with little to no trouble.
The more stuff you put on them, the more potential for problems.
Hour for hour, I would be willing to bet they will last as long.

 

[Thomas]

For me depends care of my land.
Many years I had 2WD tractors each 2 to 4 years,than decided 4WD w/fel plus goodies..had for 15+years,still would have little mule but Mrs. thought I should have
something bigger.

Seems once you get to know tractor many decide to sell/trade..which is another mans treasure.

 

[Egon]

It may all depend on how many hours and how essential it is to have it running for specific jobs.:thumbsup:

 

[Soundguy]

i think you may find this is more of a per person deal vs a trend.

I keep my vehicles till they are past -0- KBB value.. and then some.. then usually sell em for a few hundred bucks to get em off the insurance.

and tractors.. um.. not doing too good! I buy em.. but don't sell em.. just keep adding on to the barn..

so if yer makin' a database.. i'm skewin' yer results..

soundguy

Just wondering, I usually trade my vehicles in every 5-6 years and was wondering about how ownerhip cylces on tractors are. I know some folks have pretty old tractors-not just as collectors items but the still use them.

 

[Gary Fowler]

I think you see a lot of used compact tractors with few hours because some folks get the hankering for a tractor that really dont have a lasting need for one. They complete a task and the tractor sets around for a while with only a few hours on it and they finally figure out that it is costing them money to look at it. You can find the same thing with Motorcycles and boats. Then they decide to sell them and want what they gave for them which is usually why the used price is about the price of new. You have to ignore those sells as just bad judgement calls on the purchaser. High acreage farmers today seem to prefer to lease a tractor and replace them every 2-3 years so there is never any repair cost outside of warranty. This makes good business sense for lots of folks just like leasing a car. None of this ever suited me, so I buy with the idea of holding on till it no longer works or too expensive to maintain. With cars that usually means at least 10 years, tractors, I dont know, still counting. Back when I still worked the farm, that usually meant that it stayed till we outgrew the HP and moved up to bigger tractor. I dont think we ever sold one outright till Dad retired and got rid of everything.

 

[Ford tractor]

Commercial farmers (not us hobby types) will trade off small tractors (50-75hp) when they hit 6-8000 hours. That's 3-5 years for most. If machines start to act up before then, they are deemed "unreliable", traded off and that supplier may be shunned for a buying cycle or two.

Commercial users expect the machine to function all day every day with just the listed maintenance done on schedule. They trade them off before they break because accountants tell them that the cost benefit curve (taking into account lost productivity) goes negative. The cost of lost production may exceed the cost of repair and in extreme cases even the cost of the machine.

The mechanism of failure a commercial user sees isn't necessarily what we will see either. They see breakage, defects and weak designs and get rid of them before wear needs to corrected. Our machines that are very lightly used for 30 years will see more wear out and part degeneration. Hoses getting soft, antifreeze not doing what it's supposed to, rust, leaks, electrical stuff dying, etc.


I've got old machines 40-50 years old and new under 10 years. No real hard data, but I suspect equipment reliability is inversely related to the length of wires they contain.

As far as ownership cycles, some folks do trade off tractors like they were cars. The newest model comes out with better this and that, so they get it. Nothing wrong with that, wish I had the spare change to do it myself...

 

[ShenandoahJoe]

I usually trade my vehicles in every 5-6 years...

I'm another of those "buy it used and run it till it drops" guys. Let me say that I'm glad people like you exist. It takes both kinds to make the world go 'round.

 

[Soundguy]

ditto that. I especially like the guys that buy it.. take excelent care of it.. sell it in 3-6 ys still in awesome condition, perhaps evenupgraded.. eat all the markup for me, and then let me buy it for dimes on the dollar used, and then run it 10+ more years till it is truly worthless

soundguy

 

[deputy11]

Sometimes a person just gets a little older and wants a tractor with a cab to stay warm moving snow so they will trade in (up?) a perfectly fine model. Anyone else ever done that or is it just me getting soft? Well, maybe but 9 degrees like it is now with a 45mph NNW wind sure feels a lot colder than it did 30 years ago.:laughing:

 

[TripleR]

Sometimes a person just gets a little older and wants a tractor with a cab to stay warm moving snow so they will trade in (up?) a perfectly fine model. Anyone else ever done that or is it just me getting soft? Well, maybe but 9 degrees like it is now with a 45mph NNW wind sure feels a lot colder than it did 30 years ago.:laughing:

Well no, but I bought an additional tractor for just that reason, does that count?:laughing: