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If you didn't replace equipment lately, when would you?
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Kooiker
Posted 1/19/2016 07:58 (#5046944 - in reply to #5043890)
Subject: RE: If you didn't replace equipment lately, when would you?



ZRAgri - 1/18/2016 11:38 which might be what some of the posters were referring to earlier about using someone else's depreciation.





What I meant by "living off of someone else's depreciation" was buying low hr used machines at depressed prices and running those until they are used up or an opportunity to replace them in the same manner presents itself.


Just because a guy hasn't bought a bunch of equipment in the past 10 yrs doesn't mean that he is down on his luck and couldn't, he might just be waiting for the right machine at the right price.




Buying a 1000 hr class 8 combine for <$100k should give a 1000-2000 acre guy a long time of combine use.   If a guy is comfortable going to 3000 hrs that combine would last 10+ yrs doing 2000 acres/yr.       With no salvage value whatsoever that combine would cost $5/acre + repair/maintenance, fuel, interest & insurance costs.
 





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