To sell or not to sell?

[Spud12345]

Bought a fendt 211 5 years ago for £45k. It’s done 1700 hours, driven by myself so it’s like new. Only used for planting 20 acres of spuds and then digging them. Finance clear from year 3. Priced same again at £72k. That’s an increase of 10% per annum. Dealer has offered me £45k for my old tractor, £27k to change. I’d finance the 27k over 3 years again.
My question is does this make sense or do I keep it for another 5 years?. Then I’d be looking at selling mine for £50k and paying £100k (7% per annum increase) for the new one so it would be £50k to change at year 10 or £60k if mines only worth £40k. Thanks for your help,
JC

 

[Still Farming]

Keep, unless you got stacks of money you want to blow possibly.

 

[Farma Parma]

if your doing ave of 340hrs a year keep it 20years !!
Nuts changing it at 1700hrs maybes double that when its 10year old i get it.

 

[michael N123]

340 hours a year is nothing for a new tractor keep it forever

 

[Longlowdog]

To be exactly where you started again your old one will in effect have cost £15.88 in depreciation an hour. I'd keep it till the wheels fell off.

 

[Martyn]

Bought a fendt 211 5 years ago for £45k. It’s done 1700 hours, driven by myself so it’s like new. Only used for planting 20 acres of spuds and then digging them. Finance clear from year 3. Priced same again at £72k. That’s an increase of 10% per annum. Dealer has offered me £45k for my old tractor, £27k to change. I’d finance the 27k over 3 years again.
My question is does this make sense or do I keep it for another 5 years?. Then I’d be looking at selling mine for £50k and paying £100k (7% per annum increase) for the new one so it would be £50k to change at year 10 or £60k if mines only worth £40k. Thanks for your help,
JC

If you decide you do want to change, then please can you PM me some photos, would be interested as we run a 313 and looking at a smaller model to add a loader to.

 

[vinnie123]

Keep it ! If the moneys burning a hole in your pocket Buy a bit of property.

 

[kiwi pom]

Some money in the job if you can afford one of them just to plant and dig 20 acres of spuds.
Its barely run in I see no point in changing it but if you have the money and want to spend it why not.

 

[solo]

£27000 will buy you that new cab smell, but both tractors will do the same job. Not difficult to figure it out really.

 

[Spud12345]

To be exactly where you started again your old one will in effect have cost £15.88 in depreciation an hour. I'd keep it till the wheels fell off.

Thanks for your help. How do you get the £15.88 figure?

 

[Al R]

Thanks for your help. How do you get the £15.88 figure?

£27,000 divided by 1700 hrs.

 

[Spud12345]

Some money in the job if you can afford one of them just to plant and dig 20 acres of spuds.
Its barely run in I see no point in changing it but if you have the money and want to spend it why not.

It’s got full rtk on it also. At the time I swapped it my old same in for the new fendt. A new same with rtk was only 10k less so I treated myself.

 

[Spud12345]

£27,000 divided by 1700 hrs.

What’s your thoughts on selling it privately for £50,000 then it’s less to change?

 

[Spud12345]

Thanks for your help. How do you get the £15.88 figure?

If I keep it for 15 years and get £15,000 for it and the same again is £125,000 to buy then your number is £22 per hour in depreciation?

 

[robs1]

Does the old one have ad blue on it ? If not then keep it, more complications mean more cost to run and more agro.

 

[Skintagain]

If I keep it for 15 years and get £15,000 for it and the same again is £125,000 to buy then your number is £22 per hour in depreciation?

If the new one has gone up to £125000 the old one will be worth more than £15.000 at 15 year old

 

[Will Blackburn]

If I keep it for 15 years and get £15,000 for it and the same again is £125,000 to buy then your number is £22 per hour in depreciation?

In 10 years it will be at least £45k.

 

[Boomerang]

You sound like you want to change it anyway. What ever the advice you are given.
Just boils down to do what you want to do.

 

[Skintagain]

You sound like you want to change it anyway. What ever the advice you are given.
Just boils down to do what you want to do.

I thought that too. Mind already made up

 

[mf7480]

If you are a LTD company and paying corporation tax, you can offset £93,600 against tax on the new one in the first year with the super deduction. After you have paid the tax on the sale of the old one the nett result is £9250 off your corporation tax bill.

There’s lots of if’s there though, it obviously doesn’t stand if you’re not LTD and making a decent profit.

EDIT beware if you claim the super deduction on the new one you will have to pay tax on 130% of its sale value years down the line, possibly at the 25% tax rate. The clawback reduces over the years but it’s something to be aware of.