You are absolutly correct. Most of the time most people do not purchase a depreciating asset , such as a tractor with the intention of saling it before its usefullness is up. But as a 1st time tractor buyer & land owner, who is quite unsure of his future needs & may have to upgrade or downgrade tractors depending upon if plans to raise livestock and how many and if he wants his property to remian wooded or wants to clear it for more agriculture, I need to make wise a purchase now & hope that the tractor I purchase will suit my needs now and in the future. If not and I have to upgrade or downgrade, I will be able to.
My neice purchased a Kia automobile, because of her budget, kept it for 2 years (put 25,000 miles on it) and when she decided to upgrade, it was actually more valuable for her to just let her younger sister pay her $1200 and take over the note on the car rather than trade it in on a new car. She actually could not trade it in without having to pay because of the vehicle's depreciation rate.
Had she saved and budgeted longer and purchased a Toyota or Honda, I don't think should would have been in that predicament come trade in time.
I don't want to purchase a tractor or any other asset that will depreciate that fast. I am looking to purchase a tractor that will hold its value should my needs change in a few years and one that will last just in case my needs stay the same.
I originally stated that I was looking at 2 tractors within my budget, the JD 5130 and the Kubota
L3130/3430. My real decision is to choose between a 2WD 50 HP tractor or a 4WD 30 HP tractor. The 50 HP 2WD tractor will fit my needs now and most likely in the future (ie mow now and move round bales in the future), but mowing in areas that are heavily treed with that large of a tractor is impractical.
The 30HP 4WD tractor will mow and in heavily treed areas, but I am skeptical about it moving round bales. My real delima is wether I need to save longer & increase my budget so I can purshase a 4WD tractor that will fit me needs now and in the future.