Correct my thinking...

[LostMy65]

If I buy a new $20,000 tractor and some major issue comes up in my life and I have to sell it. What roughly would be my loss in 2 years?
.
Ok, so now, instead I rent a tractor every time I need one. I could seriously see myself wanting/needing a tractor to use at least once a month.
$300 to rent at 12 times a year for 2 years = $7200. (maybe I only need one once every 2 months. That's still $3600 lost by renting).
.
Yes, I'm trying to rationalize/justify, but I can't see how renting makes sense over buying, even if I have to sell my new tractor in 2 years.
.
Correct my thinking...

 

[Midniteoyl]

Depends on what the market is doing. Right now you could actually make money selling. But, going on past history, figure ~15% loss, or $3000 over 2 yrs, would be my estimate. Less than half of your rental estimate.

 

[JJT]

Buying a tractor is a luxury spend for most of us, (it's a want, not a need). If you don't have a significant rainy day fund, don't buy the tractor. If you have a significant rainy day fund, you don't need to worry about selling the tractor if something happens.

 

[fried1765]

If I buy a new $20,000 tractor and some major issue comes up in my life and I have to sell it. What roughly would be my loss in 2 years?
.
Ok, so now, instead I rent a tractor every time I need one. I could seriously see myself wanting/needing a tractor to use at least once a month.
$300 to rent at 12 times a year for 2 years = $7200. (maybe I only need one once every 2 months. That's still $3600 lost by renting).
.
Yes, I'm trying to rationalize/justify, but I can't see how renting makes sense over buying, even if I have to sell my new tractor in 2 years.
.
Correct my thinking...

Nothing to correct!
You are right!

 

[jeff9366]

Depreciation is covered in this Messick's video:

 

[Midniteoyl]

Depreciation is covered in this Messick's video:

The 20%-25% he quotes is for trade in to the dealer. Private sales take less of a hit.

 

[crashz]

Lost - your handle says it all. It sounds like you are worried about something in the future happening that has a very real chance of happening.

Based on that, do you expect to be able to handle a tractor sale during this time? Could you hold out a little to sell for a reasonable price or is going to be a fire sale? Maybe this is health or divorce related, I don't know. But if you foresee a problem, try to set yourself up now to handle it. No need to add stress.

Besides, a tractor for once a month might mean that you could rent a more specific piece for specific tasks (ie min ex for excavating, skidsteer for grading, etc). A tractor is a jack-of-all trades. Master of none.

 

[4570Man]

Renting is a complete waste of money. Buy the tractor.

 

[Gee Ray]

With the tractor market as it is I would say the worst you will do is to break even if you buy a new tractor today. If you buy one at 0% interest then you will be money ahead. This only works if you have a place to store the tractor indoors.

 

[CH4Ohio]

If you buy a used tractor (good condition and decent price), I believe you can sell it for what you have in it.