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Trade off Paid for tractor to apply toward lease payments?
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Posted 12/7/2018 07:24 (#7154836)
Subject: Trade off Paid for tractor to apply toward lease payments?

not sure which forum to put this in, marketing forum has the most finance minded posts so here is where its going. Small operation here, but that shouldnt matter. I have an older 25 year old bareback 4wd and a 19 year old MFWD (both case IH). I am putting 300+ hours on the 19 year old MFWD. I added hauling swine manure to that tractors list of duties 4 years ago and has increased that tractors usage. Cost of operation has been cheap so far maybe 2k in repairs a year or less. Just went to 6100 hrs this fall. Nothing major yet. However, I feel like that tractor is taking the load and its only a matter of time before a major repair. Tires are getting worn too. 7 years ago i purchased the bareback 4wd for spring and fall tillage. I am finding that i am putting 50-75 hours a year on it MAX. Also, my MFWD is my only PTO/3 point tractor. So I rely on it 100% planting, grain cart, and manure hauling. If that tractor is down, I am down. Also, i cant perform any of those operations that require 3pt pto simultaneously (haul manure while planting/grain cart and haul manure) with only one tractor. I dont feel i am utilizing my equipment dollars most efficiently owning the big 4wd, also the 4wd runs the risk of having big repairs even on its light usage. I hate to put a repair in a 25 year old machine that is equal to a large percentage of the value of the tractor. So the scenario is : I can lease a used 340 horse mfwd for 3 years/ 300 hours for 14k a year with full warranty. (can even add hours to lease and cheapen dollars per hour). My 4wd on trade would essentially cover the 3 years of lease payments. I would have no repairs for those 3 years and would retire the MFWD that i own to light duty/ back up status for the 3 years. Or: would you trade the 4wd off on another similar houred and aged MFWD like the one i currently have and run the risk of repairs downtime etc. I would also still fight depreciation over the 3 years buying an older depreciated out MFD (probably 10k in 3 years i'm estimating) OR: would you sit on your hands and keep the old underutilized 4wd sitting parked most of the year depreciating a little bit and keep grinding 300+ hours on the MFD and repair when it needs it.

Edited by Lotts_Valley 12/7/2018 07:32
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