Fendt depreciation per hour

[Clive]

To take a steer ready Profi Plus irrespective of whether it’s a 500 series or 1000 series requires.
1. An AG382 receiver
2. A harness kit, antennas etc
3. Two unlocks (decimetre + centimetre)

All up thx retail price for this is about £5,700. Latest prices will be on the Konfigurator. Add in your on farm discount (circa 40%) and the delta uplift should be about £3,500 to go RTK from factory.

Caveat. Haven’t priced check since Brexit. But that’s the ballpark I’d be beating up the salesman to.

I don’t need topcon fitting to mine and require an additional ISO screen to the Fendt one plus headland auto turn so didn’t even price the factory option. It will be significantly more expensive to buy though t

 

[Pheasant Surprise]

I don’t need topcon fitting to mine so didn’t even price the factory option. It will be significantly more expensive

Indeed the merit of aftermarket guidance, is that it's a moveable/recoverable investment - kit that can be moved from one machine to another. At some stage it will need replacing, though like most devices.

Its a question of do I spend £3 to £5K on every new tractor, or do I spend £8-10K once and keep it for 2 or possibly three generations of machines. Or something to that effect.

 

[stevedave]

most other brands can go well past 10khrs too and do any job a Fendt can, once a fendt hits 10k hrs its not worth as much as you think i reckon 10-15k more than a Nh/massey at those hrs but 30-40k extra to buy the fendt in the first place

The Fendt will be about 15-20k more and worth about that much more second hand. We have priced them.

 

[Clive]

Indeed the merit of aftermarket guidance, is that it's a moveable/recoverable investment - kit that can be moved from one machine to another. At some stage it will need replacing, though like most devices.

Its a question of do I spend £3 to £5K on every new tractor, or do I spend £8-10K once and keep it for 2 or possibly three generations of machines. Or something to that effect.

After an initial flirt with starfire 15 years back that was the conclusion I came to. Although initial investment is higher our oldest Topcon system is now 13 years old and installed in its 5th different tractor now

It won’t last for ever but long term has been a smart move I think. Importantly my gps kit does not tie me to any single tractor brand

 

[Pheasant Surprise]

The question of depreciation crops up on here, from time to time.

Makes me chuckle some of the comments - like there is some magical straight dep. line. There isn't! Its like any other depreciating asset and loses more in the early years than the later years. Fendt, JD, CNH etc doesn't make any odds.

Your accountant doesn't have a pull out a special "Fendt" depreciation curve. Choose your timescale and go from there

 

[Clive]

The question of depreciation crops up on here, from time to time.

Makes me chuckle some of the comments - like there is some magical straight dep. line. There isn't! Its like any other depreciating asset and loses more in the early years than the later years. Fendt, JD, CNH etc doesn't make any odds.

View attachment 727086

Your accountant doesn't have a pull out a special "Fendt" depreciation curve. Choose your timescale and go from there

The curve is common but the steepness not always quite so

 

[Pheasant Surprise]

The curve is common but the steepness not always quite so

For "illustration" purposes. Machinery and plant will have a slower taper initially than "consumer" products including cars. Same shape of curve though, as said.

 

[Clive]

For "illustration" purposes. Machinery and plant will have a slower taper initially than "consumer" products including cars. Same shape of curve though, as said.

variation between brands is also a factor as anyone who ever bought a Alfa Romeo or Masarati will I’m sure concure !

 

[stevedave]

A Fendt WILL deprecate a more or less the same rate as anything else.

 

[Clive]

A Fendt WILL deprecate a more or less the same rate as anything else.

Not based on my recent experience

724 was £110k in 2013
JD 621Or was quoted same time at £106k (lower spec as no front linkage linkage but let’s ignore that)

Assuming both thouse tractors are 4 k hrs old today is the fendt only worth 4K more than the JD ?

Not as far as I can see looking through classified ads ?

 

[stevedave]

But what will the cost to change be? Depreciation is a false cost. We once had a Massey (we all make mistakes when we are young) that only lost 6k in 3 years £2/hour depreciation. Its replacement went up over £20k in the meantime.

 

[Clive]

But what will the cost to change be? Depreciation is a false cost. We once had a Massey (we all make mistakes when we are young) that only lost 6k in 3 years £2/hour depreciation. Its replacement went up over £20k in the meantime.

Cost to change is not relevant to depreciation - I may never chage it ! I might sell and retire. Or if i change it for a cheaper tractor did I make a profit and own an appreciating tractor ?

The ownership cost of any machine should be based around its costs and not those of the one you ran before or after it

 

[sexy lexy]

variation between brands is also a factor as anyone who ever bought a Alfa Romeo or Massatatti will I’m sure concure !

Concur.

 

[stevedave]

Cost to change is not relevant to depreciation - I may never chage it ! I might sell and retire. Or if i change it for a cheaper tractor did I make a profit and own an appreciating tractor ?

The ownership cost of any machine should be based around its costs and not those of the one you ran before or after it

While I agree with most of what you say if you are not keeping it or cashing in your chips then the cost to change in the most relevant figure. Even if you are down specking cost to change is the most important thing. See my above post. Is £2ihr a realistic figure.

 

[Clive]

What’s realistic depends on what your business does

£2 / hr is not realistic with my structure but I guess someone with less to do or more tractors / labour per acre it could be possible maybe

Every business is different

 

[balerman]

There are 2 distinct ways of looking at this,and no definitive answer as to what is right.The fact that machinery has gone up so much in the last 10 years will be distorting the true depreciation figure cos in some cases you could almost make a profit on your 2-3 year old tractor if immaculate and lightly used.The problem is that to replace it like for like could still be a stupidly large amount.I still think the most accurate way is the replacement cost (like for like) that way you can see the true amount your chosen brand is costing you.Not much difference in any proven brand if you do it that way IMO.

 

[balerman]

What’s realistic depends on what your business does

£2 / hr is not realistic with my structure but I guess someone with less to do or more tractors / labour per acre it could be possible maybe

Every business is different

I cant see that £2/hr is realistic for anyone nowadays,10 years ago yes....

 

[Clive]

I cant see that £2/hr is realistic for anyone nowadays,10 years ago yes....

If you buy an old enough machine it’s a perfectly possible depreciation number - owners of classic would claim appreciation is possible !

You will only have swaped low depreciation high repair costs however assuming similar workloads for the old tractor as the newer one though

 

[stevedave]

But we are not talking about old tractors we are talking 3 years old. £2/hr is not possible it wasn't then ether the problem is new price is going up so fast that deprecation is becoming almost impossible to calculate let alone predict.

 

[Clive]

But we are not talking about old tractors we are talking 3 years old. £2/hr is not possible it wasn't then ether the problem is new price is going up so fast that deprecation is becoming almost impossible to calculate let alone predict.

We are just talking depreciation in general

If your talking newish tractors then no nothing even close to £2/hr is possible although that dies depend on how long you intent to keep it

I’m happy at circa £7/hr if I sold my tractors tomorrow - if I keep them another 6k hrs that number would probably fall though