8N/Depreciation

[Youare]

You are correct. I guess looking at a tractor as a good investment is flawed. If I took that $9,500.00 and invested it in an account that paid an avegare of 8% a year I could have over $30,000 after 16 years.

However, if I had to pay someone $30.00/hr. to do the 500 hours work the tractor did over the past 16 years I would have spent $15,000.00. So in 2001 dollars I have lost roughly $6,000.00 selling the tractor for what it cost new in 1985 dollars. I don't know of too many other purchases where I can get at least the inital cost back after 16 years and have had the pleasure of owning and operating that orange, green, blue, or whatever color tractor it is.

Nice to know they don't loose value as fast as the $20,000.00 pickup truck did.

 

[Anonymous Poster]

Don't forget to figure in the value of your time/hour. Even if you enjoy doing what you do, your time is still worth something. Especially 500 hours worth.

I'd gladly sell my '79 GMC pickup for the original price, and I don't care what year dollars you use. /w3tcompact/icons/smile.gif

PitbullMidwest

 

[Von]

SHF,
I sold my B8200 this spring for $12k. I got it used and had about $7500 into it. Used it hard for 7 years with no major problems. I think that a compact tractor is the only tool that will be worth more in ten years than what you first paid for it. I hope my B2710 will be worth the same in ten years as I paid for it!