oil barron
Member
- Location
- Aberdeenshire
Tractors...COST TO CHANGE!!!
- Thread starter Bossfarmer
- Start date
kiwi pom
Member
- Location
- canterbury NZ
How many hours on the new (to you) T7210 Bossfarmer?
Seems cheap for the 200, did you just trade it?
I guess the other thing is what has the old one cost to run, if it only needs a few bits and bobs and basic servicing, its pretty good but add in a new transmission or engine work it gets expensive.
This post is headed cost to change...., you're still going on about depreciation on the tractor you are replacing, which in business terms, basically means very little, new tractor prices seem to rise above inflation so are dragging up second values making your depreciation figures on your old fendt look OK, but the replacement new fendt tractor is through the roof, not sure if you understand the true running cost of machinery, the fendt is the premium brand, well thought out and well bolted together, the business man's tractor? hmm, not so sure...
i really do understand costings, there have been long threads about this but in summary I think you will find both accountants, AHDB benchmarkIng and the tax man will agree with me !
I can make the cost to change any tractor whatever you like …….simply by trading down to a cheaper brand or smaller model. I once traded a 145k cat challenger fior a sub 70k jd 6 series - winner ! Negative cost to change ! The challenger had still suffered serious deprecation however
inflation is a BIG issue but it has bugger all to do with depreciation in accounting or economic terms
We have found Fendt very cost effective brand to run and I have run most other brands, there is a reason their popularity has grown so fast and it’s not just because they are nice machines that operators like.
A lot of very well run farm businesses like ours where purchaser doesn’t even drive tractors choose the brand fir sound financial reasons …….. hard as some find that to understand
anyway, last post from me on this, it’s all been covered, do a search
- Location
- Cirencester
No, there was one in this area, Lister Wilders had Valtra too, is now Chandlers selling MF's, guessing the Lister mob went Kubota
Inflation has everything to do with depreciation, new tractor price rises are dragging up s/h values, making your depreciation figures look rosey!, not sure what your accountant does with the depreciation figure other than admire it, cost to change like for like is the proper cost to the business, I am not knocking the product, it is good, I'm merely questioning the economics, you mention challengers nd 6r's which has no relevance because they are apples nd pears!!
Enry
Member
- Location
- Shropshire
Two Tone is in Glos not Yorks…..
- Location
- Moreton-in-Marsh, Glos
Correct. Thirsk, Sutton Bank, Helmsley and Pickering area.
- Location
- Moreton-in-Marsh, Glos
Technically speaking we are in Warks. But postal address is Glos.Part of the farm is also in Oxon.Two Tone is in Glos not Yorks…..
- Location
- S. Staffs
This thread is about cost to change , this is cash flow whether cash deal or hp. Viewing it in these terms is an over-simplification of the true cost of ownership.
Depreciation is the true cost to the business in accounting terms. If you use too high a figure for depreciation in your accounts, when you sell the machine for more then you will be taxed on the ‘profit’ you made over it’s valuation.
You will not know the exact cost of running that machine until it has been sold. Estimate it, yes, but not the actual cost.
Depreciation is the true cost to the business in accounting terms. If you use too high a figure for depreciation in your accounts, when you sell the machine for more then you will be taxed on the ‘profit’ you made over it’s valuation.
You will not know the exact cost of running that machine until it has been sold. Estimate it, yes, but not the actual cost.
- Location
- Moreton-in-Marsh, Glos
I stand corrected re the losing the MF agency as I was referring to JJ Farm machinery. It is Listers who supplied Fendts as well as MF.
But everybody I know was shocked that JJ lost the agency as they were a very good MF dealer.
- Location
- Northumberland
Carrs Billington sell Fendt and MF.
kiwi pom
Member
- Location
- canterbury NZ
Does the higher purchase price ever change your thinking?
Buying one or two high price tractors might stack up but what if you need 10 fleet tractors for basic jobs where high spec isn't needed?
If you could buy 10, say Case IH tractors for the price of 8 Fendt's wouldn't that be a better use of the money?
It would be interesting to know the latest sales figures for Fendt, they do seem to be popular now but up to a couple of years ago if you look at the numbers they don't sell many compared to other brands.
kiwi pom
Member
- Location
- canterbury NZ
Yes, It only takes a big repair to change the numbers.
- Location
- Yorkshire
No they don't.
- Location
- Yorkshire
It doesn't sound to bad swapping a 5year old tractor to a new one for 37k, but it's just over £12 per clock hour
Will Blackburn
Member
- Location
- Cheshire
Pretty much where they’re at for a 200hp model.
M-J-G
Member
£5.71/hrs isn't too bad
M-J-G
Member
Cost to replace (with the same again) divided by hour worked is how I quantify tractor cost.