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 03-16-2004, 20:02 Post: 80077
ncrunch32



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 Pay Back Period for a Tractor

I was just thinking about when my tractor would pay for itself. I just had a plumber come here for $60 an hour. If I paid $26,500 for my tractor then the tractor should pay for itself at $26,500/60 = 442 hours. I put 200 hours on in the first year. Maybe I will use it 100 hours this year. Hmmmmm. Maybe it will pay for itself in 4 years or so? Not bad. Any one have different theories on pay back period?






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 03-17-2004, 05:00 Post: 80109
grinder

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 Pay Back Period for a Tractor

I agree with your theory,but $35.00 an hour around here would probably be closer. But, I do like those New York
prices. What does a good carpenter get to come to your house? Just curious? Beautiful House you have!






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 03-17-2004, 05:48 Post: 80112
hardwood

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 Pay Back Period for a Tractor

ncrunch32, I guess on what basis you want to figure the payback. We use out CUT's for lighter farm work, so they do earn their keep. Granted we could use an "H" Farmall or a "66" Oliver and get most things done that the CUT's will do, if you were content to get along without live pto. power steering, much inproved hydraulics, etc., etc., but the little ones make your job fun instead of a chore. Ther just isn't anything much more relaxing than going out after supper to mow a waterway, road ditch, dig up something with the backhoe, or whatever with a machine that don't break down. If I do retire from the farm some day at least one of the compacts will go with me just for the fun of having something to do. Frank.






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 03-17-2004, 07:51 Post: 80124
Peters

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 Pay Back Period for a Tractor

I would think you can rent a machine for $150 per day. At 6 hrs run time per day that would be ~ $25 per hour. Therefore your time would be ~ 1000 hours. Remember that your value on the tractor will not be zero after 1000 hours Nor are are you adding the time it takes to get and return the rental.






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 03-17-2004, 08:11 Post: 80127
shortmagnum

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 Pay Back Period for a Tractor

Do the hours I spend just driving around the woods count as $25 an hour payback time? Smile






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 03-17-2004, 08:32 Post: 80129
ncrunch32



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 Pay Back Period for a Tractor

All good points. Grinder - I haven't hired a carpenter in a while but I would guess the hourly rate would be similar. Prices and taxes are steep here. Thanks for the compliment on house. I just received my CO from the town for my poolyard project that is in my pictures. This year I have to stain the wood around the poolyard and 3 sides of the house.

Peters - I hadn't thought of the rental aspect but it is a better and more direct way to think about it. It does make for a longer payback period.

Hardwood - I agree that there are intangible benefits that are not included that really increase the overall value of the tractor to more than $. In my case a whole lot of work is getting done around the house without me. I come home from work two nights ago and my wife and daughter have dug an 80 foot trench 2 feet deep for a drainage pipe!






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Discussion Boards > Active Subjects > Messages as Posted > Just For Fun Off Topic Forum

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