you only ever swap depreciation for repair cost
Tractor replacement policy.
- Thread starter Pilatus
- Start date
you only ever swap depreciation for repair cost
Bossfarmer
Member
- Location
- between Perth and Inverness
remember cost to change is most important when your running a specific brand, 2nd hand values have increased with inflation lowering your depreciation but remember to add it on an the other end, equivalent new cost!
ollie989898
Member
That can't be totally accurate Clive. The depreciation on new gear is horrific. What is the depreciation on your 724 in 5000 hours? You aren't going to be spending 40K on repairs in another 5000 hours are you?
SilliamWhale
Member
Yes but if you can buy right then repairs would mostly be cheaper than depreciation
warksfarmer
Member
Exactly. Our last 724 depreciated at £14/hour plus servicing costs. No repairs as it was warrantied.
Bought a 3 year old CNH 2 years ago. Had it valued recently and it’s cost £7/hour in depreciation plus servicing cost.
fieldfarmer
Member
The only thing in 3 yrs or the 3000 hrs I had to pay for on there best warranty was obviously the servicing and to replace a dripping o ring, everything else was covered, I believe there are different levels of warranty so might not be comparing eggs to eggs.
Edit, on the blue ones.
It's not just repair bills on older gear, other costs need to be factored in to the equation too. Breakdowns result in wasted man hours at £15 an hour per employee and also a loss of production, which can soon add up.
Running gear which is unreliable, unless you have free family labour, or are handy with spanners can be negative economy at times.
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- Location
- Lincolnshire
If that was true you would have to scrap every tractor you want to trade in... seem to remember you said yours hold lot of value?... must be lots of mug used Fendt buyers out there with tractors costing more than new ones to operate.
That’s what gets forgotten, I do run old machines but when they break the cash stops coming in which can be more expensive.
it may be cheaper to run old machines but then can be just as expensive with the repair and downtime
- Location
- West Sussex
I think that was a lot of the issue. JD Powergard is one size fits all which is good.... but expensive!
livestock 1
Member
How much does it cost to do the synchros on the RC boxes if you don’t mind me asking?
Was told 6k ish?
Funny what I read here about depreciation, hourly costs and blah, blah, blah.
In a company you can risk putting money in order to ensure the completion of the work. Or you can risk not putting money with the more uncertain purpose of having a breakdown and not doing some work on time. All are opinions. A pound saved is a pound earned, and what you do not spend you do not have to go to the farms to look for, always within limits. With the current prices of the machinery and the current prices of our productions, nothing happens because, if anything, some work is left undone on time. A farm does not give one year, gives it another, and one sleeps more peacefully for not being obligated and not having credits, than for having new machinery to produce at ridiculous prices and having to work to pay for iron. Obviously I am Spanish and getting older
In a company you can risk putting money in order to ensure the completion of the work. Or you can risk not putting money with the more uncertain purpose of having a breakdown and not doing some work on time. All are opinions. A pound saved is a pound earned, and what you do not spend you do not have to go to the farms to look for, always within limits. With the current prices of the machinery and the current prices of our productions, nothing happens because, if anything, some work is left undone on time. A farm does not give one year, gives it another, and one sleeps more peacefully for not being obligated and not having credits, than for having new machinery to produce at ridiculous prices and having to work to pay for iron. Obviously I am Spanish and getting older
- Location
- DD9.
I can’t remember, we sold it in 2008. I was thinking about it today, and think it was actually the potentiometers that were replaced and we then moved it on because it required a/all synchros done. My mistake
livestock 1
Member
Seems a lot of RC TMs for sale around the 6/7000 hour mark. After talking to an ex NH fitter he said they will likely need synchros doing around that time.I can’t remember, we sold it in 2008. I was thinking about it today, and think it was actually the potentiometers that were replaced and we then moved it on because it required a/all synchros done. My mistake
Powershift ones less bother he reckoned.
Not sure you are understanding my post ?
what i mean is you either run newer kit that needs very little spend on repair but costs a lot in depreciation
OR
you run older kit that doesn’t depreciate but cost more to maintain and repair
old or new it still costs one way or the other so you only really swap depreciation for repair cost .....z generally speaking as i’m sure someone will now tell me their older tractors do 1000hrs plus a year and break down less than new ones !
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we have done this before! that 724 i sold cost £7 /hr in depreciation, only other costs were servicing, fuel and insurance - that is not an expensive tractor these days
lets say instead of runnng that new 724 for 5000 hrs I spent 50% of the cost on a used tractor - that would have got me one with maybe 8000hrs at the time - i could have run it the 5000 hrs to 13000 and then sold it for say 35k ? - halving my depreciation cost
........ however I would only have £3.50 /hr spare for repair which would not have covered a gearbox or major engine issue
of course you might be lucky and get 5000 trouble free hours ........
so as i say you usually simply swap depreciation for repair
i cant afford downtime when i only have x2 tractors so new - 5 or 10k hours works for me and i attract good operators with new kit and benefit from newer tech and performance
depends- sone times you might get lucky other times you may not
repair coats are scary these days, especially on big stuff
could you sleep well running a older quadtrac ? those things are like ticking bombs !
plus as mentioned, what cost reliability? - I lost half a day with our comvine last week - thats 50-75ac of milling wheat sat out in this rain that would have otherwise been dry in a store by now - the lexion is 8 seasons old now and needs changing for our workload - its hired and every year a lower hire cost tempts ! but eventually push to fat and harvest is late
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not sure how you managed £14/hr ? the only one we have ever sold so far is 50% of that
looking at values of our oldest 7500hrs if i sold ot now it would be even less
Simple reliable kit with no engine I would run for ever ! .... or a good reason to change like higher productivity etc
our 12m simba rolls are 26 years old and plan to keep them forever, modified and refurbed lat year better than new today
similar our simba subsoiler is 30yrs old
2 grain trailers from the mid 90’s and one just a couple of years old - all will be here until they are scrap
one drill is over 20yrs old and modified better than it was when new , our other drill is just a year old but plan to keep a very long time ! it replaced one I sold for more than I paid for it but has double the output !
our sprayer is 3td season now - it will probably be the last sprayer I buy
fert / lime spreader is over 20 yrs old, modified better than it was when new
drill filling trailer built on fatm worth significantly more than it cost I suspect
varderstad carrier/ bio drill bought new about 10 years ago - looked afterso still as good as new - may sell that in the future as we coyld mange without
....... and thats about our entire machinery fleet
Buy the right, high quality kit and maintain well, it can last a lifetime, unlike stuff with engines and complex gearboxes it doesn't wear out expensively!
our 12m simba rolls are 26 years old and plan to keep them forever, modified and refurbed lat year better than new today
similar our simba subsoiler is 30yrs old
2 grain trailers from the mid 90’s and one just a couple of years old - all will be here until they are scrap
one drill is over 20yrs old and modified better than it was when new , our other drill is just a year old but plan to keep a very long time ! it replaced one I sold for more than I paid for it but has double the output !
our sprayer is 3td season now - it will probably be the last sprayer I buy
fert / lime spreader is over 20 yrs old, modified better than it was when new
drill filling trailer built on fatm worth significantly more than it cost I suspect
varderstad carrier/ bio drill bought new about 10 years ago - looked afterso still as good as new - may sell that in the future as we coyld mange without
....... and thats about our entire machinery fleet
Buy the right, high quality kit and maintain well, it can last a lifetime, unlike stuff with engines and complex gearboxes it doesn't wear out expensively!
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Bossfarmer
Member
- Location
- between Perth and Inverness
For your depreciation cost instead of using the origional purchase price of the tractor try using the cost of the replacement, how does that change things, just out of interest?