New tractor

[Bossfarmer]

Valuing depreciation is tough at the moment. I looked at swapping my main tractor which primarily does cultivations, slurry and road work back in the summer. I've had it 3 years, it's done 3k hours and I was offered £6k less than I paid for it. However the cost to change was £50k.

Has it cost me £2/hr in depreciation or £16/hr?

I run more machinery than many spring calvers because it offers me more control than any local contractors are able to. In what has been a very catchy year we have been able to get all jobs done on time and in some very tight weather windows.

it has cost you £2/hr, right @Clive ?, no need to worry about the cost to change

 

[Bossfarmer]

I bought this in the same sale for £24k. Appreciation not depreciation! I like having several older but capable tractors and spreading the hours between them.

View attachment 1145520

nice how many hrs?

 

[Bossfarmer]

Not quite, though I get your point. £9,500 adjusted for inflation would be around £31,750 today, so depreciation of £1.80/clock hour

or would this method be correct @Clive ? genuinely on the fence