Your Yearly Cost of Tractor Ownership

[SuperiorLakeEffect]

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.

 

[ultrarunner]

I can say some have cost me nothing due to appreciation and even made a buck.

Of course these were all bought used...

 

[RoyJackson]

Tractor annual payment is about $3600...plus fuel.
Other than grease every so many hours, no other costs

 

[TractorTYMe]

I don't care how much it is costing me, I've hired myself out for mowing for the 2nd year in a row. And I've gotten about $4k extra mad money each year, not a whole lot but enough for me to buy a forestry winch for my tractor.

 

[MossRoad]

It's a matter of luxury for us, personally.

I could mow the lawn with a $100 push mower in a few hours.
I could shovel the driveway snow by hand in about an hour.
I could haul firewood with a wheeled cart.

Back in 2001 when we purchased our machine, I wrote this up...

PT425 from PowerTrac($8000.00 for the machine).
Small toothed bucket.
Large light material bucket.
Pallet forks *
60" finish mower
48" brush cutter
60" power angle snow plow
Loading ramps to drive it into my pickup truck

TOTAL was just under $13K delivered to my home town from Tazewell, VA.

Now figure in repairs and fuel on top of that.
- I've had to put in 3 batteries, so about $300.
- A couple belts = $50
- A starter = $250
- A tire = $50
- Misc nuts and bolts = $25
- Throttle and choke cables = $50
- 50 gallons of fuel per year = I have no idea. Let's say $2.25 for average = $112 per year X 21 years = $2363.

And I left off a few things, like a valve cover, air cleaners, oil, filters, a mower pulley, hydraulic filters, hydraulic oil, a fuel pump, fuel lines, vacuum lines, thread sealant, more misc hardware, additional/replacement headlights, a fire extinguisher, mower blades, mower wheels, brush cutter blades, grease, grease, grease....

Realistically adds up to $900-$1000 per year for me. So about $21K invested.

Now add in the current value of the machine and attachments if I'd sell it. I'd value it at $5-6K, maybe higher, since new ones are double what I paid for it 21 years ago.

So subtract a conservative $5K from the $21K and that leaves me with $16K into 21 years = about $762 a year so far.

A bit over $2.00 per day.

I can live with that extravagance.

 

[JasperFrank]

Initial cost of the 1220 with FEL and BOX Scraper was $7,500 used in 1995.
$120 to trailer it home. $1200 to fix ignition and front wheel drive.
two sets of front tires $400. New bush hog blades, $200. New radiator and water pump, $600, $100 for a new lower pin unit, $3,800, for an over all inspection, transmission rebuild, hydraulic cylinder rebuilds and new brakes. $200 for new bearings in front wheel hub, $160 dollars in batteries, $160 in Hydraulic Fluid, $30 in grease, $100 in oil changes, $4,200 in diesel.

In 28 years..... With out figuring in depreciation, about $402 dollars a year.

 

[GeneV]

Knock on wood, so far I've had no breakdown issues, so it's just the cost of oil/filter/sweat...whatever that is per year.

 

[Yander]

I think you are asking this question from a strictly economic dollars and cents perspective. Your situation is certainly not the same as mine given where you live and where I do. I would bet you could find a lower cost alternative to plowing/blowing your drive but I don't know the specs of your drive/property either.

For me, it is the harder to measure cost of being self sufficient and even being able to help my neighbors that has me owning tractors. Also, it is my hobby, so I'm not the best person to answer but I will partially answer your question with a question. Do you enjoy the ability to go out and plow your own drive when you like and at your convenience? That is worth something to me. I do not like to be reliant on others out here in the country.

 

[dodge man]

Judging by your name I assume you get a boatload of snow. Your tractor may almost be a necessity.

 

[Williy]

Right now I'm paying between $1500 to $2000 a month
includes payment, fuel, oil and grease etc

willy

 

[Slowpoke Slim]

Right now I'm paying between $1500 to $2000 a month
includes payment, fuel, oil and grease etc

willy

Holy Cripes Williy,

How much fuel are you using a month?

 

[ROUSTABOUT]

aWho cares. If you need it, you need it. If you really want to save, sell your vehicles, get an apartment in town, ride the bus.

 

[dodge man]

Right now I'm paying between $1500 to $2000 a month
includes payment, fuel, oil and grease etc

willy

A month? How long is the term of your loan.

 

[beowulf]

The tractor and implements have been paid for years ago. I don't keep track of a year to year cost, but it would involve fuel, oil, hydraulic fluid, filters (air and oil and more), grease, batteries, replacing a few hydraulic hoses (due to owner back dragging errors), parts for repairs I have done myself, repairs I had done by others (weld a cracked FEL bracket, change front seals), and over time a few accessories (tractor canopy, new seat). I would not know where to start to amortize the costs over the years - since 2003 - but the tractor would have to cost me several thousands a year before I would get rid of it - too much needed, and too much enjoyment on the seat. A reasonable best guess would be maybe $600 - $800 a year (mostly fuel) and including amortized costs of repairs. But that is just a guess. I suppose I should keep track of these things.

 

[PreacherM]

I set my budget at what I could comfortably afford to purchase with cash. I look at it as a lump sum that i will not have to pay again. The occasional repair and routine maintenance are pocket change compared to the value of being able to maintain my acreage, plow snow, haul firewood, etc, etc. Plus the enjoyment I get out of exercising a capable piece of equipment that gives forth a pleasant diesel rumble!

 

[JasperFrank]

With CUT prices the way they are, in the used market, its pretty hard to know what the costs are till, you re-sell.

 

[ultrarunner]

Kubota sent out incentives on small tractors on financing and something about $700 off today via email.

 

[Cougsfan]

The cost of owning my tractors is something that doesn't even cross my mind. I guess I am not the kind of guy who runs a balance sheet on everything I do. Life would be a drag if I did. I paid cash for my tractors, and am staying even overall on my finances. I would not be able to do what I love doing without my tractors, so from my perspective I don't worry really about what they cost.

Early in my life I had a Economics Instructor stress a simple rule of life to follow; If you cant afford to pay cash for your toys (including things like car), you can't afford them. The only exceptions to that might be for borrowing to buy items that make you more money than what the loan costs. (My tractors don't qualify) I have strictly followed that advice for the last 50 years and it has worked well. That discipline helps one keep a proper perspective on material items too. You don't really 'need' your toys. They are just nice to have if you can afford them. There were times when I was younger that advice prevented me from having all the 'fun' things that my friends did. But throughout my life it has enabled me to live without stressing about money.

 

[wolc123]

The cost of owning my tractors is something that doesn't even cross my mind. I guess I am not the kind of guy who runs a balance sheet on everything I do. Life would be a drag if I did. I paid cash for my tractors, and am staying even overall on my finances. I would not be able to do what I love doing without my tractors, so from my perspective I don't worry really about what they cost.

Early in my life I had a Economics Instructor stress a simple rule of life to follow; If you cant afford to pay cash for your toys (including things like car), you can't afford them. The only exceptions to that might be for borrowing to buy items that make you more money than what the loan costs. (My tractors don't qualify) I have strictly followed that advice for the last 50 years and it has worked well. That discipline helps one keep a proper perspective on material items too. You don't really 'need' your toys. They are just nice to have if you can afford them. There were times when I was younger that advice prevented me from having all the 'fun' things that my friends did. But throughout my life it has enabled me to live without stressing about money.

Good advice and I would add that it’s not all about money, and the best things in life are free.

I am 57 years old and have been operating tractors, on our family farms, since about the time that I could walk. The first tractor I operated was the 1950 John Deere model M, which was the first tractor on my grandpa’s farm. That farm has been owned by our family since before the Civil War.

My dad still has that tractor, over at my other grandpa’s farm (on my mom’s side). That farm is about 18 miles from our place, which I purchased from grandma (on dad’s side) 22 years ago. That old M is parked in their barn and has not run in about 5 years. Dad is retired now but he used it over there, mostly in his big garden, up till then. It would probably start, if I poured some gas in it, and took over a 6 volt battery.

I would guess that grandpa paid about $ 900 for that tractor new in 1950. That is based on dad telling me that he had also looked at Fords, but they were way too expensive. Our well-to-do neighbor bought a new, 1951 Ford from the dealer in town and I have the bill of sale for that ($ 1,100 for the tractor alone). Grandpa bought his Deere from a dealer (2) towns away.

My own first tractor purchase was that Ford, which I bought from the widow of the original owner, along with all the other equipment it came with, in 1989, for $ 1200. It had 1100 hours on it then an now it has 2200. That neighbor had a big job at a factory in town and only used that tractor on his 1/2 acre garden.

I had to replace one of the back rims a year ago, which I paid $80 for, but it still has all the original, 1951 tires on it, and the original paint. I also replaced the distributor last year, and gave it a valve job a year after I bought it. Total parts expenses, over (30) years have been under $ 1000. It has always been stored inside, which keeps the rubber and paint in decent shape. I put a $27 seat cover in on this year.

It is one of (2) tractors that I still have (never sell your first if you don’t have to). I have had as many as (4) at a time on our 34 acre farm (my aunt next door owns the other (6) acres of the original 40). I paid cash for all of them, including the other one that I still have. That is a 2005, John Deere 4120, which I paid $ 17,000, new from a dealer about (10) towns away, on the far side of our county.

That was a special price, offered at the county fair that year. The tractor has never needed dealer service, but a Deere dealer is closest to my place and that is where I picked up all the filters over the years. It also needed a new starter in 2010. I bought an aftermarket one on-line for about $250 because the dealer wanted $400 for a Bosch oem replacement. I also replaced the battery twice (the last one cost me $ 140) and the front R1 tires (I think they were about $120 ea). That’s it for parts expenses.

I like having a gas and a diesel tractor, because there is often times, like right now, when gas is significantly cheaper than diesel. Diesel is usually significantly more efficient though.

Penny pinching for sport is fun in this world, but my real treasure will be in the next, with my Savior JC.

 

[oosik]

I have a mile long gravel driveway, home, out buildings, vehicles, snow and 80 acres. All require some degree of maintenance. I find it much better to be able to do what I want to do and when I want/need to do it.

I do all my maintenance - home, property, vehicles, etc.

There are maintenance items and projects here on the property that there is nobody to hire. Either I do them or they will not get done.

All said - my tractor is one of the principle tool to do all these tasks.

One of my VERY LEAST concerns is annual cost to keep/operate my tractor. I've got much better and more important things to think about.