Your Yearly Cost of Tractor Ownership

[hornett22]

Mostly curios about my fellow residential users- those of us who don't claim a tractor as a business expense. How much does a tractor cost you per year?

I only really *need* my tractor for one thing (snowblowing). Kind of curious to run the numbers to see if a tractor is the most financially efficient way to keep my driveway clear.

I run my tractor about 50 hours a year. Assuming a lifespan of 5000 hours for the tractor- well, it should pretty much last forever.

Initial purchase: $32k (L3901 with loader and SB1064 blower, taxes, etc.) In theory, there's a cost to keeping that much money tied up in something but financed at 0% for 84 months it might actually be making me money at current inflation rates.

Insurance: Required as part of the 0% financing. I get it through a local agent for $275/year.

Fuel: Maybe 25 gallons if that? $100

Maintenance. I think I paid about $200 for all the filters and oil needed for the 50 hour service. Will need roughly that again every 400 hours. Considering that's like an 8 year service interval, maybe we'll do those things more often and call it $200/year to cover things like grease and beer to consume while greasing the tractor.

So yearly operating costs are cheap: $575/year. About $10/hour.

But how to figure the long terms costs of the tractor? Assume I run it into the ground over 20 years and there's nothing left at the end: $1600/year.

For a grand total of $2175/year or $40/hour. I don't think I'm going to hire somebody at that price.

But tractors seem to hold their value very well right now. Even at 20 years old, a garage kept tractor with <1000 hours should fetch a nice price still. Who knows what tractor prices will be like in 2040, but If I can get $10k for it then, yearly costs would be down to $1675/year.

I'm curious how the operating costs for others work out- especially those that have bought and sold a couple tractors. It's pretty unlikely 2040 me is still going to want to be driving around backwards with no cab, blowing snow.

If you're that worried about money, you could just move to a state with much lower taxes and no snow. The savings from your vehicles not rusting out alone would save you substantially.

Get a condo and you won't even need a lawn mower.

 

[Green Acres Homestead]

Snow and a very steep hill. Also, I plow 1/2 mile of private drive and 4 neighbors when it gets real bad and their 4 wheelers won't handle it.

Steep hill….. I know about that. I have ice chains on backed tires. I bought a great set of ice chains 4 years back. Crazy hilly driveways here in Cape Breton Nova Scotia.

 

[Green Acres Homestead]

$50k here, before loading it up, but that's a bigger tractor than the average CUT found on this forum.

Yes... here's where everyone with a big tractor gets to pipe up and say, "not me!" A very small fraction of total CUT sales are 100 horsepower, which is where the M5 is sitting.

That is a big price difference from here. I guess a guy has to pay to play.

 

[Williy]

I don't care about the cost I have it
when I need it and don't have to travel
and waste time renting something when
I need it.

willy

 

[RalphVa]

Costs about $10k every 6 years to replace it, including FEL and often one attachment. About 70 hours/year. A couple oil changes after the 50 hr service all done at home.

Last 2 JDs have required 2 to 3 trips to the dealer in those 6 years. Hoping this Kubota B2601 will be more like the 1st JD 2 series: no dealer trips. No hydraulic oil change on the Kubota @ 50.

Use for snow, bush hogging, wood chipping and general diesel wheel barrowing.

 

[Green Acres Homestead]

I don't care about the cost I have it
when I need it and don't have to travel
and waste time renting something when
I need it.

willy

It is good you are in that boat. Most home owners are. The problem begins when you are working your tractor to make money and it is working hard for 300 to 500 hours a year. It sure does cut into profit. I try to be fair. Most of my customers are little old retired ladies with not much money. But still keeping things in perspective the increase in price of fuel cost is about $10 per visit to snow blow their big long country driveways. So 20 visits a year that is $200 a year more to get their driveway done. Doesn’t sound like much but with home heat costs and food cost and land tax increase Canadians are feeling the pinch. Man things in the world has sure changed.

 

[kaandemir_8]

Mostly curios about my fellow residential users- those of us who don't claim a tractor as a business expense. How much does a tractor cost you per year?

I only really *need* my tractor for one thing (snowblowing). Kind of curious to run the numbers to see if a tractor is the most financially efficient way to keep my driveway clear.

I run my tractor about 50 hours a year. Assuming a lifespan of 5000 hours for the tractor- well, it should pretty much last forever.

Nox Vidmate VLC​

Initial purchase: $32k (L3901 with loader and SB1064 blower, taxes, etc.) In theory, there's a cost to keeping that much money tied up in something but financed at 0% for 84 months it might actually be making me money at current inflation rates.

Insurance: Required as part of the 0% financing. I get it through a local agent for $275/year.

Fuel: Maybe 25 gallons if that? $100

Maintenance. I think I paid about $200 for all the filters and oil needed for the 50 hour service. Will need roughly that again every 400 hours. Considering that's like an 8 year service interval, maybe we'll do those things more often and call it $200/year to cover things like grease and beer to consume while greasing the tractor.

So yearly operating costs are cheap: $575/year. About $10/hour.

But how to figure the long terms costs of the tractor? Assume I run it into the ground over 20 years and there's nothing left at the end: $1600/year.

For a grand total of $2175/year or $40/hour. I don't think I'm going to hire somebody at that price.

But tractors seem to hold their value very well right now. Even at 20 years old, a garage kept tractor with <1000 hours should fetch a nice price still. Who knows what tractor prices will be like in 2040, but If I can get $10k for it then, yearly costs would be down to $1675/year.

I'm curious how the operating costs for others work out- especially those that have bought and sold a couple tractors. It's pretty unlikely 2040 me is still going to want to be driving around backwards with no cab, blowing snow.

grease every so many hours, no other costs

 

[WinterDeere]

grease every so many hours, no other costs

You don't change oil, oil filter, fuel filter, coolant, hydro fluid, or hydro filter? And what do you put in the fuel tank?

Owing to the OP who is asking about the costs of a machine dedicated to clearing snow off the driveway, I'd guess the top expense at 50 hours is the yearly oil change, with fuel being second. Hydro fluid and coolant can be done less frequently, perhaps even every 6th year at just 50 hours per year, depending on machine and fluids used.

 

[Jstpssng]

I have no idea what mine costs. I bought it so that it's there when I need it. In the first year I put about 200 hours on it, the second year about 150, the last two year have been about 100 hours per year. Right now I'm watching it snow, and it's nice to know that I will be able to clean up after the storm's over. It's paid for, I keep (2) 5 gallon containers of fuel on hand and when I use one I fill it again... which reminds me that I should have bought conditioner when I was in town yesterday. I"m sure that it isn't winter formula in the tank.

 

[GeneV]

I have no idea what mine costs. I bought it so that it's there when I need it. In the first year I put about 200 hours on it, the second year about 150, the last two year have been about 100 hours per year. Right now I'm watching it snow, and it's nice to know that I will be able to clean up after the storm's over. It's paid for, I keep (2) 5 gallon containers of fuel on hand and when I use one I fill it again... which reminds me that I should have bought conditioner when I was in town yesterday. I"m sure that it isn't winter formula in the tank.

I hear that. We're about to get hit with snow around here, and one neighbor is calling the plow guy to make sure he's on the list, while another neighbor will be spending hours walking behind his snow thrower. For me, my massey is sitting in the garage with the plow mounted, fuel tank is full, and I'm sure it will last me all winter. It's a good feeling to be prepared like that.