What I see are the guys that buy the equipment griping about the very things the mfgs say they put on the equipment "because the customer asked us to". Then you've got the whole emissions deal where many municipalities have regulations that force equipment owners to have the newest stuff to work within their boundries, etc, etc, etc. In the end all that adds up to companies being forced to buy new equipment. That said, companies that can afford to do things like that can also afford to buy new machines within a 'known failure period' therefore keeping their equipment either within warranty periods, or able to be sold before known wear problems arise. Too, they often buy a fleet of all one brand equipment. Doing things like this they can then afford to also buy the diagnostic equipment to work on their own machines, cutting the dealership (and the high cost involved there) out of the picture. The problem is that most folks like us (The small businesses) can't afford to do things like that. All we need is a machine that is reliable, easily and cheaply repairable when it does break, and does the job we need it to do....without a lot of bells and whistles.
As far as the tax thing goes. Again, most big contractors can afford to buy new, and depreciate the cost of a machine over several years, if they keep it long enough to get a full depreciation out of it. That's one of the things that makes the whols scheme of letting businesses depreciate a large amount of a purchase the first year so attractive nowdays is that many large companies don't let their machines hang around long enough to get a full return on their investment via depreciation otherwise. On the other hand you can often buy say an older D9 CAT for around $35,000. Take that machine and do a complete ground up restoration/rebuild and you'll end up with around $120,000 to $150,000 in what amounts to a brand new machine. of that cost the $30,000 purchase price is depreciated out over time, no problem, while the 'cost of repairs' is immediately depreciable. In other words your 'return' immediately in the way of a tax break, and not having to stretch it out over several years like the company that bought brand new. In the end both machines, new and old, are doing the same thing and moving dirt. The biggest difference is that the older CAT will still be pushing dirt when the new one is in the bone yard because the computer that controls the engine is either obsolete or costs as much as another new machine. On the other hand the rod ball ends, and the pieces of threaded rod that control the throttle on the old D9 are readily available at the local supply house.
In the end I believe new will always have a place for some folks, and for some reasons. The problem that new and 'way too complex' needs to go back where it came from....at least in the equipment field.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Women and Tractors - More Views From the Farmer's Wife - by Teri Burkholder. The top ten reasons why the judges wouldn't let you participate in the stock antique tractor pull: Hey, this is stock! It came with that V8 in it! That "R" on my tires stands for "really old" not radial! Blue gas? We thought it was a pretty color! What wire hooked to my throttle?
... [Read Article]
Latest Ad:
Sell 1958 Hi-Altitude Massey Fergerson tractor, original condition. three point hitch pto engine, Runs well, photos available upon request
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
