What if....?

[Steppenwolfe]

Consider the value of good used tractors. Some sell for more than their original price.

And the Kubota MX is a solid, desirable series tractor.

You should be able to continue to own and operate the tractor over an extended period, and most likely sell it for not much less than you paid for it as long as you take care of it.

A good tractor and good quality implements are more like an investment than expense.

...//TJ

I sold my 2012 MX5100 for $500 bucks less than I paid for it. I could have held out for the 500, but the guy who bought it was a good dude...

 

[DieselBound]

It's less about what you fetch at resale than it is about measured "return on 'investment'." I'm not an accountant, but I believe that the equation goes something like: return on investment = sales price - ([initial cost + operating cost] - value of work performed*) * I believe the more accurate accounting description is "depreciation."

And if you really want to count all the beans there's also inflation to consider...

 

[Thomas]

That's loaded question...couple factors are you up there in your years of life,would you be okay someone else doing the work there way,are you planning to down size or new home in the future?

 

[DieselBound]

^^^ Yup. DETAILS matter. Blanket statements are fine if you're wanting to warm yourself, but they're problematic if you're wanting to cool yourself

 

[mcfarmall]

Some people buy a boat, some buy a motorcycle, some buy a sports car. I bought a tractor to get some work done and for personal enjoyment...actually better reasons than buying the toys mentioned above. I can afford the payments, maintenance, etc. and I have no regrets whatsoever. I don't hire anything done by outsiders.

 

[number two]

You like having a tractor and can afford it.
Don't worry about it.
Resale or residual value will reward you long-term!
Good Luck!

 

[DieselBound]

Some people buy a boat, some buy a motorcycle, some buy a sports car. I bought a tractor to get some work done and for personal enjoyment...actually better reasons than buying the toys mentioned above. I can afford the payments, maintenance, etc. and I have no regrets whatsoever. I don't hire anything done by outsiders.

I TOTALLY can relate to this! And while I'm baised about such I still think that it's a smart approach!

 

[shooterdon]

Using "wants" to justify spending 10's of thousands of dollars is not smart. But nothing says you need to be smart about spending money you have worked hard to earn....unless you have a wife...LOL.

I will share my numbers. $40k on tractor/attachments. Factor in maintenance/fuel over those 15 years at $600/year. Assuming a return of 4% (after taxes) gives almost $85k of assets used over 15 years.

I spend $1000 a year to clear snow and save about $800 heating with wood. Note: at 70 YO I can only continue to use wood heat if I have a tractor. I do about $500/yr of work for neighbors in trade. So my savings are ($1000+$800+$500) $2300/yr, but those numbers get better every year. Assuming an inflation rate of 4% it works out to about $50k. This does not factor in other "nice to do" projects/wants/needs.

So at the end of 15 years I will have saved $50k and if I can sell the tractor and attachments for what I paid for them get another $40k...for a "value" of $90k.

After 15 years I will essentially break even but have had a nice machine that has done other jobs I may have either contracted out or done without.

BTW, my propane costs went up 30% this year.

And not to get political, but the way our government is currently spending money like a drunken sailor, $40K in today's dollars may not be worth much unless it is wisely invested.

In my case, a tractor seems like a good investment with little downside.

 

[Steppenwolfe]

And not to get political, but the way our government is currently spending money like a drunken sailor, $40K in today's dollars may not be worth much unless it is wisely invested.

It isn't "currently"... it's always been. Huge tax breaks for the ultra wealthy sure didn't help, did it?

 

[Fuddy1952]

Interesting thread.
Personally I love working on things myself, plumbing, welding, cutting trees, mowing, farrier work, trail riding, etc.
A good left coast friend flew back home to the apartment he and wife live in. To us that would be h***.
We have friends living at a lake and took us out on their boat. Wow! We thought...for a couple hours, then no joy.
I guess it all boils down to enjoyment. Some people it's a Porche and watching TV. Forty acres would need right much upkeep. Guys I know who do things are in better health than ones who don't.
It's all about happiness.