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SC WI | zmracing - 12/7/2018 08:30
It looks like I am different then everyone else as I would do the lease. There have been some very good lease deals the last few years and repairs are very expensive. We leased a tractor 3 years ago and the lease is up but the buyout on that tractor is a lot less then what the value of the tractor is now. If we sold it we could get most of our lease payments back but we are going to keep the tractor and pay the buyout on it. We are comfortable that we know exactly what we are getting with that tractor. There can be value at the end of the lease if you are leasing a little bit older tractor that has already depreciated. I have no idea what repairs would cost on your 4 wheel drive but a transmission for a 10 year old JD would cost $45,000 or more in a dealers shop.
I’ll ad that no two leases are the same. Really pay attention to the numbers, I looked at a couple tractors, and the lease payment/buyout would have built no equity. The tractor I leased, the buyout is real low(pending a complete collapse in the market). In my situation I am “leasing” to purchase, all I am doing is stretching out the term of a loan essentially.
I know the more power the better, but hp costs a lot of money, my leased tractor is used close to its limits, to increase efficiency. It has no problem handling the tasks, but I see people with twice the tractor doing the same task.
I only have one tractor, mine needs to have little downtime. With the warranty, I get a loaner tractor for the per hour cost of my lease if there is a major issue.
I was trying to pencil out having two tractors, keeping my older magnum, and getting a second. Mine had 12,000 hours. A second nice 15 year old tractor was pretty expensive. | |
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Trade off Paid for tractor to apply toward lease payments?
