Tractor Ownership Cycle

[cdaigle430]

Just wondering, I usually trade my vehicles in every 5-6 years and was wondering about how ownerhip cylces on tractors are. I know some folks have pretty old tractors-not just as collectors items but the still use them.

 

[TripleR]

We have tractors made in the 50's and 60's that are used regularly for bush hogging. We have an 87 MF 375 for use in the woods. We do have newer tractors, but they will still be in the family long after I am gone.

If properly maintained, a good tractor will last a lifetime for most non commercial users.

 

[Denwa]

Just wondering, I usually trade my vehicles in every 5-6 years and was wondering about how ownerhip cylces on tractors are. I know some folks have pretty old tractors-not just as collectors items but the still use them.

Daig,
I tend to keep my vehicles until repair costs make further ownership a loosing situation. You know, if it costs more to fix it than to replace it. I've not had my tractor very long, but knowing the general service life of a tractor, which is reportedly just about forever if maintained and not used all day every day and put away wet, I will likely never replace mine because of it's age. I also seldom buy new, as a good used unit is so much less.

*IF* I had a ton of disposable income, things might be a bit different, but function has always driven most of my decisions, not style. I bought what I needed the first time. I doubt my needs will change. If so, I would likely sell or trade in, but that's a different circumstance than you're asking about.

Regards,
Dennis

 

[Dr_Zinj]

It's been a decade since I had access to Air Force Technical Order 36A-1-1301; but if I remember correctly, the serviceable life expectancy for a tractor used for towing aerospace ground equipment was either 15 or 25 years. 15 seems too short but when you get 4 different kids driving them in shifts every day, and they don't always take a whole lot of care of them, that's a lot of wear and tear.

 

[picker77]

I think the depreciation curves are likely very different on a tractor vs a truck or car. After some relatively low (compared to a car) initial decrease in value when you take delivery and put the first hour on a tractor, it will depreciate much slower and in a more linear manner than a car, and model year will have much less effect on used value than will mechanical and cosmetic condition and brand name. All that is of course related to the (I believe correct) premise that the useful life of a tractor in calendar years far exceeds that of a car or truck.

Conversely, a truck or car loses a huge chunk of dollar value the instant it's titled to the first owner, and model year is much more important than condition where used market value is concerned. I paid cash for a new 'loaded' 2001 Silverado LT 2500HD 4wd crew cab Duramax/Allison that is still in like new cosmetic and mechanical condition with 74,000 miles. It's had zero problems and needed no significant repairs since new. I'd probably be totally shocked at how low the blue book value on it is right now, especially considering it would probably cost me $50K to replace it with a new one just like it. I'd be totally insane to get rid of it unless I hated driving it, which I don't. It's a great truck and I've loved it since day one.

 

[smstonypoint]

Just wondering, I usually trade my vehicles in every 5-6 years and was wondering about how ownerhip cylces on tractors are. I know some folks have pretty old tractors-not just as collectors items but the still use them.

Coming at this issue from an (agricultural) economist's perspective, there are procedures for determining an optimal machinery replacement policy. Unfortunately, they require a lot of math.

Here's a link that provides a "quick and dirty" method for addressing the issue.

http://extension.psu.edu/scregion/Agriculture/Farm%20Management/aboutPubs.pdf

Steve

 

[Runner]

For me, something like a tractor is a "permanent" fixture. I'm 52 and plan on having my current machine until I die (unless I get a wild hair and decide I just can't live without a 2720...). I only put 60-70 hours a year on it, so I don't think there's much chance I will wear it out.

I just tend to hang on to things as long as possible. When/if it gets too old for practical work, it will become an "antique". I still have my 1989 JD 185 lawn tractor (working machine) and 1960 Panzer T70 lawn tractor (antique).

I probably have some kind of issue with emotional attachment to inanimate objects that needs to be addressed....

 

[pitt_md]

The tractor I have is well suited for the acres I have. If I stay where I am I will keep it as long as I am able to use it. I don't plan on buying any more land but never say never. In that case I might upgrade if things called for it.

 

[tessiers]

I tend to agree with long term ownership, however I don't believe most tractors sold today will still be working 60 years from now as many old tractors are. Todays tractors are far more complex than the tractors of yesteryear and I think that will shorten their usefull life. That being said I think they have a much longer life span than auto's, I think most will get electrical or electronic problems long befor they wear out. My 1941 Farmall has 5 nessesary wires, 1 to the magneto to ground it out, and 4 to the plugs, all the rest are for convenience, and they are the most aggrevating parts on the tractor.

 

[ModMech]

To me and I think *differenty* than most, the replacement schedule is simple.....

Q1: Is the asset able to perform the task for which it is needed?
......Y = continue
......N = sell/trade

Q2: What is the monthly cost of a replacement?
A = $/mo

Q3: Can the asset be repaired for less than the annual replacement cost ($/month * 12 months)?
......Y = Keep
......N = sell/trade

Q4: Will the new asset cost more or less per month, to operate and maintain, compared to the current asset?
......More = think HARD
......Less = buy

If I can keep an existing asset performing well for LESS than the cost of payments on a replacement asset, I keep it. Generally this means that I keep it until it is total junk and no longer suitable for our family (due to size/capacity etc). VERY rarely can you purchase for less than repairs.

I think of it this way: Payments on a new "whatever" are $450/mo, do we spend that much ore more in operating costs + repairs on the current "whatever"? No, then we keep it!

If "whatever" suffers a major failure and can be repaired for less than 12 times the monthly payments on a "new" "whatever" (and in some cases anything close to 12x) then we fix and keep. If the failure truely is catastrophic, then we replace.

****Note: I should add that we don't borrow $$$, we will gladly accept 0% however. The "payments" are the amount per month we would have to save based on the useful life and cost (ie: $83/mo for a $25k asset that has a useful life of 25 years).