5000ac Farm won’t buy new

Al R

Member
Livestock Farmer
Location
West Wales
Plus breakdowns !

Seriously new vs used, all you do is swap depreciation for repair

I wasn’t defending or pushing either way but you can see how easy it is for a salesman to chuck out a £350,000 machine to someone. Add a bit for repairs and add a bit for some extra warranty and the twin beacons and the machine is sold (y)

When your quite good at figures it’s easy to justify almost any machine on the market.
 

Al R

Member
Livestock Farmer
Location
West Wales
The flaw in that is 3500 acres, in Claas "perfect world" its ok, but in real world its a bit optimistic
But the 3500acres is the capacity the 350k machines are aimed at. Doing 350,000 into 3500acres is far easier for people to understand/view than working out 349,999 divided by 3333acres, which is £105/acre or £21/acre over 5yr.
 

Pingu

Member
The flaw in that is 3500 acres, in Claas "perfect world" its ok, but in real world its a bit optimistic
I believe Claas shouldn’t do it on acres everyone’s conditions are different it should be down to the person to decide even for us we are due to stick over 11-12000t of crop through a 770 which is then 3000 acres yet some may only do 8000+ on 3500 so will easily do it in less hours. Just far to many factors involved chopping etc etc
 
Location
southwest
It's called making a decision based on facts.

I expect they costed various options, new/used/lease hire/rental/contractor etc and did what was best for them.

Most farmers use the "I want to have a big new bit of kit, can I afford it? If I can't afford it can I get it on payments?" decision process.
 

glasshouse

Member
Location
lothians
View attachment 693660

Base it on £200,000 cost of ownership (350k - 150k like in the picture above)

£200,000 divided by 3500acres is £57.14/acre. Divided that by 5 years doing 3500acre it’s £11.42/acre.
But in order to find 3500 acres you need to bid a ridiculous rent, so you may save a tenner on combining but lose 50 on the farming.
Plus a big lexion north of the humber cant cut 3500 acres in anything but the easiest season.
 

Al R

Member
Livestock Farmer
Location
West Wales
But in order to find 3500 acres you need to bid a ridiculous rent, so you may save a tenner on combining but lose 50 on the farming.
Plus a big lexion north of the humber cant cut 3500 acres in anything but the easiest season.
A big lexion would struggle with 1500acres around here on a normal year in 10-15acre fields,and that’s if it could live at 25% MC.

But the 5000acre farm in questions owns all their land so why wouldn’t someone in this paper exercise own all 3500ac?
 

An Gof

Member
Location
Cornwall
£350,000 divided by 3500acres is £100/acre, have that combine 5 years means £20/acre. I’ve seen worse business plans!!

Sell it for £100,000, so £250,000 it’s cost.
£250,000 divided by 3500acres is £71.42/acre, divided that by 5 years work is £14.28/acre.

Don’t know what it’s like in West Wales but you’d need a genius to get 3500 acres through one machine in this part of the world.
 

Johnnyboxer

Member
Location
Yorkshire
He's worth £50m and does what he likes. If the bottom line was important he wouldn't be growing combinable crops.

Exactly
But by not buying New he is being canny letting someone else take the initial depreciation hit - either farmer number 1 or a hire co
Plenty of use left in a 800-1000 hr tractor or combine and most of the early niggles will have been ironed out

You can also check the warranty & service log at a main dealer to see if has been a lemon or has had any rough operator induced breakages before buying

Plus you can buy an extended warranty to protect against future major bills for not much money from the manufacturer

All adds up to a decent saving over new and if you do your homework correctly as I have outlined above then there is a managed risk and you have protected yourself from future repair bills

As I said the 5000 ac man is a canny chap ....not buying new tackle
 

glasshouse

Member
Location
lothians
Exactly
But by not buying New he is being canny letting someone else take the initial depreciation hit - either farmer number 1 or a hire co
Plenty of use left in a 800-1000 hr tractor or combine and most of the early niggles will have been ironed out

You can also check the warranty & service log at a main dealer to see if has been a lemon or has had any rough operator induced breakages before buying

Plus you can buy an extended warranty to protect against future major bills for not much money from the manufacturer

All adds up to a decent saving over new and if you do your homework correctly as I have outlined above then there is a managed risk and you have protected yourself from future repair bills

As I said the 5000 ac man is a canny chap ....not buying new tackle
i have only bought a new tractor when forced to through circumstances.
 

roscoe erf

Member
Livestock Farmer
They can afford to take the hit if the secondhand unit stops, probably have the dealer died up that tight, he has to respond.
Smaller operators can't afford the risk of modern secondhand kit .................
I'd say they'd be gamblers, always assessing the risk

Interesting thread .............

one way of getting it cheaper can't see it catching on in the long term
 

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