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A tractor is a powerful vehicle with large rear wheels specifically designed for hauling farm implements or machinery and they are mostly used on farms or places that require machinery such as construction sites. Since these are not everyday vehicles that are easy to come by, we would enlighten you on how to find their worth. So how much does a tractor worth?
The price of a new tractor can vary from $10,000 to $400,000 or more depending on how new or big it is. This is a wide price range because of the factors involved. These factors are; the kind of engine that powers it, the brand of the tractor, the model, the availability of some additional features like a loading bucket, or a backhoe.
This article would enlighten you on factors to consider when looking to know the value of a tractor and the price of the vehicle itself.
How do I Find the Value of My Tractor?
There are several variables to look at when valuing a tractor, it can either be brand new or second-hand.
- New Tractors: In most cases, you can get a rough idea of how much a new tractor costs from the kind of engine power it has. A tractor with an 80hp would likely cost up to $50,000. Tractors of this size cost less in most cases. Tractors like these are more efficient for smaller-scale farming operations. A tractor with a minimum of 100hp would likely cost between prices of $50,000 to $75,000.
A new tractor with 100-150hp would cost between prices $75,000 to $150,000 and above. There are also new tractors that cost up to $200,000, and the biggest ones for large-scale farming which are high-tech that costs $400,000 or more.
These prices stated above are most likely not the price the tractors are usually being purchased for, they are often starting points for negotiations with the dealership. It is better to consider what finance one is bringing to the table and the deal that can be beneficial to both parties.
There are extra options involved in list prices for tractor models. For example, if there were to be any additional features included on the vehicle there would be an additional cost to the price. Additional features like a loading bucket or backhoe can cause an increase of $5000 to the price of the tractor. Several transmission systems cost a little bit more, as well as cab features like Bluetooth, ergonomic seating, and the likes.
- Second-Hand Tractors: In the case of second-hand tractors, there are also many variables involved like the make, model, engine, age, and size. Second-hand tractors are relatively affordable compared to the new tractors due to the fact that they are easier to fix than newer, software-driven tractor models which require high maintenance.
Second-hand tractors can be valued from $2000 for the models with low engine power like 40hp to $75,000 for models with high engine power like 175hp. Other factors to consider include the brands that produce the tractor model and how many hours the used tractor had already done also with the lifespan of the machine. It’s advisable not to buy a tractor that has very little lifespan left.
How Much Does a Tractor Depreciate Per Year?
Every machine undergoes depreciation and tractors are not left out. Depreciation is simply the allocation of the cost of an asset over the time it is being used. Previous data on second-hand farm tractor prices are major determinants used to estimate farm tractor depreciation.
Estimations from these previous data have been able to indicate that depreciation of farm tractors may be approximated by an 8.3% annual rate, and this is lower than most of the previous estimates and the depreciation allowed by the current tax laws.
For the useful life of a tractor, an average farm machine is estimated to have an economic life of 10 to 12 years and a 15-year lifespan for tractors, other than if it’s going to be traded sooner. There is also the salvage value of every machine, which is the sale value of the machine at the end of its economic life.
There are several factors that cause tractors to depreciate such as; depreciation for income tax purposes, depreciation for management purposes, depreciation based on use, and depreciation due to cash flow.
- Depreciation for Income Tax: One of the most used applications of depreciation is in adding up the business net profit to determine the amount of income tax to be paid by the owner. On the other hand, the depreciation allowance for income tax purposes might have little or no effect to the actual use of the tractor.
- Depreciation for Management Purpose: In this case, one of the easiest ways of calculating depreciation is a straight-line method, which is assigning the same ratio of the cost of the tractor to each production period throughout it would be used.
- Depreciation Based on Use: In this case, rather than measuring the tractor’s useful life in terms of time, it can be measured in terms of possible production.
By using an hourly rate to calculate the depreciation, it enables the owner to assign a suitable percentage of the cost of the tractor to each activity. It also simplifies the question of allocation of cost among enterprises.
This technique also adopts the form of straight-line depreciation, on the other hand, it enables the owner to efficiently assign the cost of the tractor to its actual use.
- Depreciation and Relationship Due to Cash Flow: Depreciation has some inimitable features relative to other operating costs. The main difference is that when the cost of depreciation is being accounted for when totaling its profit will not align with when the business has to pay for the tractor.
Even though depreciation is every so often considered on the period being used, some tractor owners may choose to consider assigning the cost on the grounds of which it’s being used.
Is There A Blue Book for Tractors?
No, the tractors do not have a blue book. In most cases, tractors are either always overvalued or undervalued which makes it difficult to place a value on them. The most efficient way of getting a close figure on the value of a tractor is by attending farm machinery auctions. Tractor prices are also regional, some models are in high demand depending on their location, and support from the dealer also helps.
Used Tractor Value Calculator
1. FleetEvaluator.com
FleetEvaluator.com: This is a Sandhills Global mobile-friendly equipment valuation tool, and according to ‘Tractor House’, it is the most precise, potent, and comprehensive tool accessible in the enterprise today.
Sanhills’ groundbreaking technology allows FleetEvaluator to rapidly explore billions of dollars worth of assets, demand, listing, and transactional equipment data acquired from multiple retail and function sales to linking the most valid valuations. FleetEvaluator then weighs this tremendous stream of data against real-time economic conditions, local demands, short-term, and other variables.
With Sandhill’s magnificent innovations, knowing the value of your tractor is very easy and comfortable. FleetEvaluator has been developed with programs that will help you calculate the worth of your tractor in record-breaking time by sifting through millions of data obtained from multiple retail and function sales to streamline the results to the most suitable valuations.
2. Digitrac
Digitrac: Digitrac is a mobile app designed by Escort Limited to provide everything you need in farming online. Digitrac can be used to purchase various equipment online. Tractor parts are also sold via Digitrac.
Digitrac is a very effective value calculator because it has a feature that allows you to input information about the tractor. For example, you can input data about the tractor’s brand, model, and more. After you enter the information, it shuffles them together, searching through the internet to get you the precise value of your tractor.
Digitrac is also a suitable value calculator because it offers other farm-related services. You can sell your tractor and at the same time purchase other farm equipment.
3. Used Equipment Guide
UsedEquipmentGuide.com: The developers of this website have formulated statistical pricing prototypes for 11,142 models with 11,258 variants across 811 makes based on publicly accessible for-sale listings to aid buyers and sellers deduce the right prices for their tractors.
This value calculator is very easy to use.
It has been designed in the simplest means possible for the effective evaluation of your tractor in order to attain the suitable price for it by juxtaposing the information you submitted (which are: the year the tractor was made, the model of the tractor, the make of the tractor, and the meter of the tractor) with the statistics already accumulated by the developers of the Value Calculator.
4. Farmer Weekly
Fwi.co.uk: This website very easy to use and very effective as well. It has a page for calculating the value of tractors. It is designed to value your tractor based on adverts placed by other farmers who would also like to sell their tractors.
The website request the details about the tractor, like its model, year of production, etc. It then compares them with adverts afore placed by other farmers in order to give you an estimated value of your tractor.
