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SC WI | I have a 10 year old tractor that is about depreciated out. In my situation I use it about 100 hours(sees 500 hours annually) for tasks an older cheap tractor could preform.
I actually try to put more hours on this depreciated out tractor than the low hour equivalent. This is because the low hour one I plan to keep a long time and the depreciated out one is going to be replaced in the next couple years. I have two tractors, my operation cannot justify adding a third, even though it would be nice.
I suspect the magnum 180 is not going to devalue much by putting an additional 500 hours on it in the next 5 years.
ETA: for this 100 hours of work, could you upgrade the implements to increase productivity?
ETA2: 4186 summarized it well. Also could the cost of the other tractor be put towards something else? Don’t forget interest expense and opportunity cost.
Edited by Excalibur 1/29/2024 20:41
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Tractor value per 100 hours
