Tractor costs per hour
- Thread starter Landrover
- Start date
beefandsleep
Member
- Location
- Staffordshire
£12 plus the driver
£12, bit on the low side, It will proberbly be at least £7 in diesel alone, add at least £1.50 in tyres and £1.50 servicing and your already up to £10 without insurance and depreciation.
Ali_Maxxum
Member
- Location
- Chepstow, Wales
https://thefarmingforum.co.uk/index.php?threads/man-and-tractor-price.152390/page-19#post-3338778 There's currently 24 pages of pretty much what you're asking for here, plenty of talk about diesel, insurance, tyres, depreciation, etc, etc, etc!
24 pages and helluva lot of different figures [emoji23]
Ali_Maxxum
Member
- Location
- Chepstow, Wales
i'm not sure many know how to work out the actual from what I've read so far !
John 1594
Member
- Location
- Cambridgeshire
Rule of thumb....if you can afford more than one holiday a year...your costs are low enough.
- Location
- Northumberland
Yes - previous debates between you and @Feldspar are mere subtleties compared with some of the logic applied thus far
Devon James
Member
- Location
- Devon
Was talking to a tractor salesman this week, was asking what second hand tractors he had. He had just done a deal on 160hp, 2 years old 2500 hours, a bit of warranty left. Cost to change like for like was £27,000.
beefandsleep
Member
- Location
- Staffordshire
You are right. I didn't include fuel as that is so job specific, sorry for not making that clear.
This is one quoted from the other thread for you-
Insurance - £0.50
Tyres - £1.25
Depreciation - £3
Repairs - £2
Servicing - £0.50
Admin & Sundry - £0.25
Profit - £2.50
Wage - £10
My opinion though everybody price is different... My tyres might last twice as long as others as I'm sat on a pump or s.bar. Also my insurance ses to be triple of what some quoted in the other thread.
Assuming we're looking at costs rather than rates, theres still some fogginess. For example, depreciation. We bought a 1996 tractor with 2000hrs in 2008 for £13000. It unfortunately fired in September 2016 with 5600hrs on it. The insurance paid out £12000, which was near enough its market value, backed up by others on the market in similar condition. In theory, its cost a grand in depn, or 28p/hr. In reality, to get back to a 2000hr 12yo tractor, one whould have to part with about £20k, which brings the depreciation to £2.22, or 8grand.
My 7480 cost £45500 when new in 2006. Its done 11600hrs now, and is probably worth £16k (its well shod and tidy) so £29500/11600=£2.54/hr.
I actually use the latter of my above examples, ie how much do I need to spend to get back to where I started. Lets assume a 7616 of the 7480's spec would cost £65000new. £65000-16000=£49000/11600=£4.22/hr
Its repair bills divided by hours =38p/hr
Its tyres are 90% because it spends a lot of time on rowcrops, but it has consumed two pairs of fronts at £1500/pair, and a pair of rears at a grand apiece = £5000 worth of tyres, 43p/hr
Servicing hasnt been a fortune, about 80p/hr
Insurance is about 40p/hr
Cost before fuel and driver of £5.43 (if only they were all this cheap to run!)
Fuel varies according to work done, in this ones case its about £4/hr
Driver true cost will be a bit over his hourly rate per tractor hour, because he'll be on pay if the engines stopped, say £15/hr
So in this case £24.43/hr before profit.
My 7480 cost £45500 when new in 2006. Its done 11600hrs now, and is probably worth £16k (its well shod and tidy) so £29500/11600=£2.54/hr.
I actually use the latter of my above examples, ie how much do I need to spend to get back to where I started. Lets assume a 7616 of the 7480's spec would cost £65000new. £65000-16000=£49000/11600=£4.22/hr
Its repair bills divided by hours =38p/hr
Its tyres are 90% because it spends a lot of time on rowcrops, but it has consumed two pairs of fronts at £1500/pair, and a pair of rears at a grand apiece = £5000 worth of tyres, 43p/hr
Servicing hasnt been a fortune, about 80p/hr
Insurance is about 40p/hr
Cost before fuel and driver of £5.43 (if only they were all this cheap to run!)
Fuel varies according to work done, in this ones case its about £4/hr
Driver true cost will be a bit over his hourly rate per tractor hour, because he'll be on pay if the engines stopped, say £15/hr
So in this case £24.43/hr before profit.
icanshootwell
Member
- Location
- Ross-on-wye
My accountant will soon be telling me, "do you realize how much your spending on machinery"
- Location
- Larne, Northern Ireland
That's not possible, machinery is good, buy moreMy accountant will soon be telling me, "do you realize how much your spending on machinery"
icanshootwell
Member
- Location
- Ross-on-wye
I do, i am always getting a bollocking from the mrs
Ali_Maxxum
Member
- Location
- Chepstow, Wales
Our accountant has actually praised us this time for buying and updating kit, can't remember why but in a roundabout way it benefitted the whole job on a whole....
