5000ac Farm won’t buy new

[Will Blackburn]

Hire co's run them for 500-800 hours
Buy one of theirs from long term hire

Can't even buy my preferred brand then.

 

[Will Blackburn]

Can't even buy my preferred brand then.

Or next preferred brand.

 

[Stevethemeat]

They probably did a cost per acre or per unit calculation £44 per hour probably is not too bad if it’s processed 100 widgets per hour at £1 a widget leaves £66 an hour margin in my way of thinking

 

[sexy lexy]

The hire tractors generally get piloted by anyone, who generally don't give 2 f's about it, plus the dealer will make just as much money on an ex hire yolk as a new one, local dealer selling a major brand says there's more money in selling s/h tractors as selling new one's!

 

[startinghandle]

there is a lot of speculation going on … how about some more.. the guy who owns 5000 acres also owns the tractor firm where he buys his machinery and uses one against the other as a tax advantage

 

[kamloops]

everyone in this thread seems to have forgotten that SOMEBODY has to buy new in order for YOU to buy second hand. This has been possible because at sensible prices people continue to buy new. Now that prices are beyond justification to even large owned farms they will (as above) stop buying new and buy second had (1 or 2 years old).

Whats the result? Second hand values shoot up, dealers sell less and so their costs increase too.

Brace yourselves as a downturn in farming doesn't mean we can all rush out and buy good value second hand kit (Unless many farms fail!)

 

[fred.950]

99% of all statistics are made up

Did you make that up? [emoji23]

 

[Insane Ubolt]

everyone in this thread seems to have forgotten that SOMEBODY has to buy new in order for YOU to buy second hand. This has been possible because at sensible prices people continue to buy new. Now that prices are beyond justification to even large owned farms they will (as above) stop buying new and buy second had (1 or 2 years old).

Whats the result? Second hand values shoot up, dealers sell less and so their costs increase too.

Brace yourselves as a downturn in farming doesn't mean we can all rush out and buy good value second hand kit (Unless many farms fail!)

If some body didn’t buy the secondhand ones not many people could afford the new ones!!

 

[nick...]

Does anyone think that dealers put out big hire fleets on the instructions of the manufacturers to boost sales figures to keep them well up the sales league
Nick...

 

[matttargett4]

I get the idea of this but I call bs.

The combined are ok, say they've done a yr of the 2500ac work load each they've lost £24/a.c. there are people who pay that for big combines on hire.

The tractors however, pop into your local dealer, enquire about a new 115k tractor, then ask if they have any ex hire versions at 80k. Perhaps at 100 there might be something, if it was that easy everybody would do it, whilst the reality is the ex hire one will be 100 or more, have 0% finance, warranty for free etc, add in the depreciation that a tractor of that size will cost of 8-10k for the 800hrs and magically the new one is sold.
Do those who hire pay £40/hr for 215r or similar?
The dealer doesn't chuck in 20k for the fun so someone is paying or it isn't going out of the yard.

 

[james ds]

Compromise and buy new and keep for a long time. You cannot always get the correct spec with buying 2nd hand.

I'm pricing up a new tractor at the minute , another dealer has a demo with 300 hrs on it , it has €18 k worth of extras on it compared to the new model , I can get the demo for €15 k less than new tractor , I won't use all the extras on the demo but there on it anyway ( auto gps steering). So which is the best deal.

 

[An Gof]

If we all become a “canny” 5000 acre farmers and buy all our kit s/h the model just won’t work. Someone has to buy it new.
Me, I’m stupid, I buy quite a bit of new kit but look after it and keep for a good many years. I find it works for me. But hey, we all do it differently.
Always work with a managed replacement plan and as far as possible stick to it. I learnt that you need to budget for some cap ex every year. If you can’t afford to reinvest whatever your annual depreciation figure is you are effectively living off it and long term that isn’t sustainable.

PS one day I will be dead. Life is too short to spend all day driving and working with crap

 

[nick...]

PS one day I will be dead. Life is too short to spend all day driving and working with crap

This is very very true.ive got a 13 and 21 year old tractors totalling near 300hp on 200 arable acres and I’d love a newish 6/12 month old tractor with all the bells and whistles as I love my machinery but even though I could easily afford it and keep my current tractors I just can’t get my head round it.
Nick...

 

[ollie989898]

I would be interested to hear from people who have bought big machinery secondhand and what kind of money they budget for repairs and maintenance?

I know Claas have expensive parts but 100K would pay for a lot of labour and repairs?

 

[roscoe erf]

If some body didn’t buy the secondhand ones not many people could afford the new ones!!

and if someone didn't buy the new there would be no second hand ones

 

[Deutzdx3]

If we all become a “canny” 5000 acre farmers and buy all our kit s/h the model just won’t work. Someone has to buy it new.
Me, I’m stupid, I buy quite a bit of new kit but look after it and keep for a good many years. I find it works for me. But hey, we all do it differently.
Always work with a managed replacement plan and as far as possible stick to it. I learnt that you need to budget for some cap ex every year. If you can’t afford to reinvest whatever your annual depreciation figure is you are effectively living off it and long term that isn’t sustainable.

PS one day I will be dead. Life is too short to spend all day driving and working with crap

Agree, but,, if more people bought secondhand, maybe just maybe manufacturers would get the hint their new machines need the price adjusting accordingly. As some one said in another post , a baler that was 25k 3 years ago is now 35k for a big company that has economy of scale that’s sure is a price hike!

 

[fred.950]

Does anyone think that dealers put out big hire fleets on the instructions of the manufacturers to boost sales figures to keep them well up the sales league
Nick...

There are contractors around here working with dealers. They are ordering twenty or thirty tractors a year meaning both the contractors and dealers are getting them substantially discounted. The contractors put a few hundred hours on them and then sell them before they have really paid for them therefore running them for nowt!
You just need the contacts and the nerve to get into the 500 club.

 

[Power Harrow Pilot]

Manager near here used to brag how many acres he could get through a claas combine, all well and good when he was talking to his bosses, what he wouldn’t let on were his drying charges, used to start every morning by 9am and not Finnish till 1 am, anything under 30%!!!

 

[Clive]

Manager near here used to brag how many acres he could get through a claas combine, all well and good when he was talking to his bosses, what he wouldn’t let on were his drying charges, used to start every morning by 9am and not Finnish till 1 am, anything under 30%!!!

Was he wrong ? Drying grain is cheaper than having to run another combine !

 

[Clive]

I would be interested to hear from people who have bought big machinery secondhand and what kind of money they budget for repairs and maintenance?

I know Claas have expensive parts but 100K would pay for a lot of labour and repairs?

You could spend 10K plus on pre season easy