SuperiorLakeEffect
Bronze Member
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.
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.
