- Location
- Bedfordshire
Why? How does it affect the cost of the outgoing machine?? Are you a used car salesman?
Deere or Fendt
- Thread starter Alwaysworking
- Start date
When I price a new tractor I ask the salesman for the cost to change, it comes off my profit its the figure my accountant can then calculate my end of year tax liability, at no put does my accountant ask me how much my tractor has depreciated!! its an interesting figure... Yes, but of no interest to the profit nd loss accounts, unless you love scribbling on bits of paper!?
Mouser
Member
- Location
- near Belfast
That is correct, that is not an insignificant amount of money. However it has absolutely nothing zilch nadda zero to do with cost of ownership of either tractor.
- Location
- Yorkshire
He will work out what your tractor has depreciated as it will be part of your tax liability as they've been depreciating it in your asset register so could effect what tax is to pay
Fragonard
Member
Where is the 35k on paper in the new deal?
It's the depreciation of the old one.
- Location
- Lincolnshire
I have just traded in a grey fergie that I have had since new for the biggest Quadtrac, the depreciation on the fergie was horrendous, 1000 times more than it cost!
Finn farmer
Member
No. He had to write a 140k cheque, as he didn't trade in the old one.
Fragonard
Member
This nonsense that Mr. Successful is going on about is total rubbish, and it's really annoying, that some of his worshippers come on here and agree with him, but, NO ONE has answered the question of where did the 60k come from on the day to pay for new machine. 140minus80 leaves a shortfall of 60k and he says he didn't pay 60k. So who did? I'm not referring to any future costs, tax benefits, repairs, depreciation etc etc. I'm wondering about the 60k difference between new and old on the day that he took delivery.
warksfarmer
Member
Back in 2010 we bought a used tractor for £54k. Ran it for 4 years and sold it for £50k and put the money into the bank. We replaced it by hiring tractor for the next 4 years. When the hire tractor left we bought a used tractor for £65k and now nearly two years later just had it valued at £66k. In all cases repairs have been zero bar a £800 spool in the first tractor. Servicing is the same whether it’s owned or hired. No warranty on the used tractors but then again they are 60% less than new versions.
I’m not interested in the colour or bothered what it is. It’s how much it costs that matters.
As for ‘price to change’ it matters from a cashflow pov but isn’t connected to the ownership cost of the machine you are selling. It’s merely the figure the dealer wants to deliver another one to your yard if you trade in. That said I think your mad to trade a machine in with an engine as they sell for far more privately. Sell something and bank the money then replace it on finance because finance is cheap at the minute.
I’m not interested in the colour or bothered what it is. It’s how much it costs that matters.
As for ‘price to change’ it matters from a cashflow pov but isn’t connected to the ownership cost of the machine you are selling. It’s merely the figure the dealer wants to deliver another one to your yard if you trade in. That said I think your mad to trade a machine in with an engine as they sell for far more privately. Sell something and bank the money then replace it on finance because finance is cheap at the minute.
- Location
- Yorkshire
Is it anybody's business where it came from? It's just the figure between what he sold his old one for a what the new one cost. He may of put his 80k down as deposit and financed the rest over The term he hopes to keep the tractor for. He may of put less down and financed remaider and taken a holiday with the rest. It doesn't matter his last tractor still cost what it cost in DEPRECIATION regardless of anything else
ollie989898
Member
ollie989898
Member
I'm just waiting for the next person who discovers the revelation, perhaps when it comes to part-exchanging in a 4 year old Quadtrac or something for a brand new 150hp Deere and consequently has absolutely zero cost to change- that John Deere gonna be fudging cheap to run.... it was free! 
Fragonard
Member
I'm just hoping that this thread doesn't spread to other threads, where innocent people seek advice on TFF about pricing a machine, and they get bombarded with all this crap about ignoring salesmens figures, sacking accountants, trading themselves into the ground, buying new calculators, timemachines, etc etc etc
- Location
- Bedfordshire
Why are you wondeing about the 60K? if the cash flow allows it or finance is available whats the problem? It has no bearing what so ever on the out going machine, and if finances and the bank manager allow then it allows you to replace said machine for 60K, time will tell if that was a good investment as the cost of ownership of the new machine will not be known until the day it is sold. it could well be a very sound investment, but as always your investment may well go down as well as up. Who cares I am slowly replacing everything as everything I inherited when I took over nearly two years ago is past its best, combine, drill, sprayer and tractor so far, replacing two tractors and a self propelled sprayer with a trailed and a worn out combine with a fresh one.
Fragonard
Member
I'm wondering about it because he says he didn't have to hand it over! I'm not interested in anyones cashflow.
- Location
- Yorkshire
If anyone has the means to pay 140k or even 60k for a asset that they are going to keep for 5+ years they'd be mad to you are limiting your ability to grow. I've spent about 50k this year but only used about 15k of my money after vat reclaim.the rest the assets will pay off themselves as they work over next couple of years