fieldfarmer
Member
Could you show you workings out on the old one's depreciation please.
Deere or Fendt
- Thread starter Alwaysworking
- Start date
d williams
Member
Lets work on simple figures you buy something for £150k you sell it for £100k said item has depreciation of £50 k simple does not matter if it’s a tractor boat car or plane
- Location
- Yorkshire
What he said.
Bought for 115k, sold for 80k. The difference is 35k. The price of the new one has no influence on depreciation on the old one.
lloyd
Member
- Location
- Herefordshire
After many a dull day farming this thread
lightens my day up.
It's like a sketch from the two Ronnies
"What he said".
lightens my day up.
It's like a sketch from the two Ronnies
"What he said".
Fragonard
Member
Clive believes that the new one cost him 35k, which was the depreciation on the old one.
Mouser
Member
- Location
- near Belfast
No, I'm quite sure he knows it cost 140k because that's what he said right at the start.
I think he wrote somewhere that the price for the new one was 140k.
So i’m sure he believe it cost him 140k to buy it.
I’m also confident that he didn’t write anywhere what the new one cost to run, as he can’t know at time of puchase, when he take the risk of running it on himself.
fieldfarmer
Member
Oh I see , just in post 18 he paid 110k for it!
ollie989898
Member
Yes but first prize for honesty and accuracy!
ollie989898
Member
I'm still confused. Explain to me where 60K comes into it?
ollie989898
Member
Are you really sure he said that? Are you saying if he had sold the old one a year earlier (and thus at a higher value) the new one would magically become cheaper?
The new tractor cost 140K. I think we are all agreed on that.
I won’t look through 21 Pages to find what everyone posted. This is way beyond any reasonable debate.
No matter what they are, depreciation is difference between what it’s bought and sold for. i think that is clear for most.
Someone wrote that the price for running a tractor was dependent on if you bought another one, or it was your last.
I really don’t know how to respond to that.
i really am surprised that there can be so big differences between how people, running businesses, look at basic economic terms. There really is no room for interpretation in this stuff.
This confusion between cashflow and bottom line is really a mystery for me.
ollie989898
Member
Ah ha! I have just had a Eureka moment now. This explains Clive's love of all things tractorial if huge and complex; by not replacing his 8520T and so having zero cost to change it was actually cheaper to run than his Mitsubishi Evo.
Fudging genius. I now know what to do when it comes to replacing my aging mobile phone, by not electing to buy a Samsung Note 10 my existing handset will actually have paid back what it cost me.
- Location
- Yorkshire
Just going by your figures you put it cost 110k and was sold for 80k giving 35k depreciation surely that's 30k depreciation or it cost 115k.
60k comes from cost to change whether that's been paid or put on finance
What murks the waters at times is when, for whatever reason, the price of a trade in is inflated or deflated to suit the deal in question. This is for a variety of reasons, and is why folk get tied up with cost to change.
My 7480 cost £45500 when I bought it in 2006.
I got £12000 for it when I sold it in 2018. (It wasn't traded in)
That tells me that my depreciation on that tractor is £33500. It had done 12600hrs, so it cost me £2.65 in depreciation for every hour it ran. (Less than half Clive's 724 depn!)
The £12k I got for it was a way of raising the deposit for it's replacement, which cost me £64,000
£12k of the 64 was raised from the sale of the 7480, the rest of the £52,000 via finance.
One could argue that £52k is the cost to change, which would be true.
What the £52k is definitely not, is the depreciation of the old tractor. How could it be, I didn't pay that for it new!
My 7480 cost £45500 when I bought it in 2006.
I got £12000 for it when I sold it in 2018. (It wasn't traded in)
That tells me that my depreciation on that tractor is £33500. It had done 12600hrs, so it cost me £2.65 in depreciation for every hour it ran. (Less than half Clive's 724 depn!)
The £12k I got for it was a way of raising the deposit for it's replacement, which cost me £64,000
£12k of the 64 was raised from the sale of the 7480, the rest of the £52,000 via finance.
One could argue that £52k is the cost to change, which would be true.
What the £52k is definitely not, is the depreciation of the old tractor. How could it be, I didn't pay that for it new!
Yes less , but a smaller tractor.
The rest of your post is bang on.
Shouda bought a Davy Broon.
- Location
- Northumberland
I put £50 on horses today. I got back £20. I've put that £20 and another £40 aside for the bookie tomorrow, but I'm pretty sure today has only cost me £30. Tomorrow's another day.
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