Are tractors and equipment a good investment right now?

[Yander]

While you may invest money in a tractor, the actual tractor is not always an investment. I did not buy my tractor to make me money, it is an asset, but it won't ever make me what it cost me. And I didn't buy it with that purpose in mind. So it is not an investment in the true sense of making money. Btw, is food an investment? With your definition it is, as is even toilet paper

I don't resell my food but if I did, I would buy food and re-sell it and that would be an investment. Food is just a consumable item. In a business it would be and O&M cost.

I wonder if a few of you really actually read my original post, or just the subject line. Some responses were spot on and indicated that they read the post and understood my question; very much appreciated too BTW. Then there were some who seemed like they read the subject line and jumped right to their response and tunnel vision view of what an investment is.

I bought 2 rototillers, 1 I bought about 2 years ago, for $1700, and used it for 2 summers and sold it this year for $2200. The other I bought this year about a month ago for $2200. Never even put it on my tractor. I sold it earlier this week for $2500. I had about $15 in gas and a nice visit with a good friend who rode along.

That's about $800 in profit without even breaking a sweat or taking much time to do it. One of them I also used for two years. I would say that isn't a bad investment. I earned about 20.5% on that investment of a little time and gas. I also just enjoy the search and getting out of the house.

So, I feel like I've answered my own original question. It is in fact a good investment. But, I will caveat that with, only if you can get a very good buy and only if you have the discretionary funds to sit on it for a minute. It also depends a lot on what you are buying and the resaleability (my made up word).

 

[ultrarunner]

If you can buy it right you are already ahead...

One of dad's question was always if you had to liquidate tomorrow could you get your money back?

I bought a used cable rooter and thought it would be good to have as a couple of rentals would pay for it...

It was 375 and I got a lot of grief for it when I asked if anyone wanted to in on it with me?

So I used it once and put it in the penny saver for $600 and first person said I will give you $500 now and I said sold...

Later I was asked to loan it out and said sorry... sold it.

Got a log splitter for free once... story for another time.

Tractors and equipment can be a good investment anytime if you buy right and/or have a need and avoid renting.

 

[K5lwq]

I had a friend that made a real nice living buying and selling equipment. He did more construction type equipment but he knew how to buy it right. It always amazed me the great deals he could find.

So if you make money using the tractor or you are a dealer then buying a tractor is definitely an investment.

 

[Hay Dude]

With the ever dwindling supply of people doing physical labor, anything that can do brute force work seems more and more like a good investment.

 

[WinterDeere]

It is in fact a good investment. But, I will caveat that with, only if you can get a very good buy and only if you have the discretionary funds to sit on it for a minute.

There's an old saying in the used boat market, that you make your money on buying it, not selling it. The implication is that many people overspend on the buying, because they're excited to get the thing, and ignoring the added costs that will be required to put the thing back to ship shape.

 

[ultrarunner]

Follow up to the free log splitter…

I mentioned I was buying a used log splitter and several neighbors wanted to share and I said ok… I would keep it and each of the 3 paid 1/3 the cost.

It really was a great deal and did a lot of work… sadly all 3 of my partners have passed on now 20 years later.

So it’s just me and the splitter left.

 

[CobyRupert]

Follow up to the free log splitter…

I mentioned I was buying a used log splitter and several neighbors wanted to share and I said ok… I would keep it and each of the 3 paid 1/3 the cost.

It really was a great deal and did a lot of work… sadly all 3 of my partners have passed on now 20 years later.

So it’s just me and the splitter left.

One way or another, they were going to split….

…(groan)..sorry. You were lucky to have good neighbors. I thought this was going to be one of those nightmare “shared ownership” stories gone wrong. Its good to hear that people can be responsible and get along. Thanks.

 

[Williy]

You never want to get into the toilet paper business because
you can get wiped out before you can turn around

willy

 

[TractorTYMe]

In 2022 4 days into the invasion of Ukraine, I bought 100# of flour because I bake my own bread. It cost $65.00 then, this week I paid $97.00. I mean I will never get into grain cultivation, but having a piece of equipment that can make living in the sticks a little easier is always an "investment in health" vs paying hospital bill.

 

[jyoutz]

Tractors and equipment are only “investments” when they are used in a business to produce income. Otherwise they are expensive consumer goods that many of us are willing to pay for. And their depreciation is less than many other depreciating assets, so the ownership costs are reasonable over time.