Hourly cost to own/operate tractor?

[JPVV]

Hello,

I purchased a used L3940 with 800 hours this past spring for $20,000. Such an awesome tractor!

I would like to loan this tractor to a good friend of mine from time to time and I want to find out what the tractor costs to run so he can borrow the tractor, keep track of hours, and reimburse me a fair rate for fuel, maintenance, depreciation, etc. Anybody have any good ideas what a fair rate would be? I am looking for a fair rate so I can feel totally fine loaning him tractor...

I just don't have enough tractor experience to have a good idea about this...Thanks for all replies!

 

[jeff9366]

If you do all service work yourself and value your contributed time at zero, $20.00 per engine hour.

If you own multiple implements and have dealer perform all service except fueling and greasing, $35.00 per engine hour.

Most compact tractors are imported through SE/USA ports and assembled in SE/USA.
Most USA manufactured implements are produced in SE/USA.
Tractor service is generally $70-$75 per hour in SE/USA. Low relative to other regions.

If you will operate tractor in NE or on the West Coast, add $5.00 per hour.



TBN ARCHIVE: https://www.tractorbynet.com/forums/owning-operating/400277-running-costs-cut.html

https://www.tractorbynet.com/forums...isons/377826-what-does-your-tractor-cost.html

https://www.tractorbynet.com/forums/owning-operating/350549-operating-costs.html

Personally I would not loan out my tractor, I'd go do the work for the friend.

Good advice.

 

[cat fever]

Call a rental place and see what it would cost to rent one similar to yours, that will give you a starting point.

Personally I would not loan out my tractor, I'd just go do the work for the friend.

Using and abusing have different meanings to most people.

 

[YLee Kioti]

I inquired about that before we moved to the homestead.
There was a saying about a man and his tractor and wife but forget the punch line.

We all have little hiccups when we use our own machines. If anything happens to you machine while used by others then yourself it can fester bad feelings. Just something to consider.
Charge by the hour and do the work for him would be a win win for both.
My 2 cents....don't want to overcharge for free advice.....

 

[JPVV]

Thanks for the replies so far! The more data points the better, so please keep them coming in...

I know it is wise and the best course to not loan out tractor and I have resisted other inquiries for tractor and offered to do it myself.

This is a special exception for a good friend though and I plan to loan him out the tractor, so just looking for the right hourly rate. Thanks!!!

 

[4570Man]

I think it’s a bad idea as a whole, but I don’t think it cost very much. I think plenty of the estimates here are way high.

 

[oosik]

JPVV - if you are dead set against the very best advice you can get on TBN - "don't do it" - then for God's sake be sure your insurance will cover damage to tractor and implements when off your property. Damage to the tractor - in particular - can be an astronomic cost to repair.

 

[crashz]

Lets assume a few things:
- $4.00/ gallon for fuel
- Average fuel consumption ~ 1.5 gallons per hour
- Cost of 100 hour maintenance (oil, filter, grease, air/fuel filters) ~ $100

Barring no repairs, no major maintenance and your time is free = $7.00/hr

All the stuff that actually will go wrong and cost you a fortune = Priceless!

It may sound like we are a bunch or crabby old hermits, but we have been there. Plenty of us have had equipment damaged or destroyed by friends or family (family in my case). It never bodes well. Ever.

If you still loan it to your friend, I would at least ask him to cover any damage and repairs. Maintenance is nothing. A $600 rear tire (or tweeked $5000 loader, or cracked transmission housing, etc) is a different story.

 

[RGAZ]

Barring no repairs, no major maintenance and your time is free = $7.00/hr

Now there is a REALLY good friend! I'd kill to rent a tractor for $7 an hour.

Normally I would add depreciation, but when it comes to tractors, they don't really depreciate.

I would work with your friend on some bartering. Everyone needs a hand now and then.

RGAZ

 

[fried1765]

Hello,

I purchased a used L3940 with 800 hours this past spring for $20,000. Such an awesome tractor!

I would like to loan this tractor to a good friend of mine from time to time and I want to find out what the tractor costs to run so he can borrow the tractor, keep track of hours, and reimburse me a fair rate for fuel, maintenance, depreciation, etc. Anybody have any good ideas what a fair rate would be? I am looking for a fair rate so I can feel totally fine loaning him tractor...

I just don't have enough tractor experience to have a good idea about this...Thanks for all replies!

If you value your friendship.......DON'T LOAN YOUR TRACTOR !!!!