We often hear older people say “They don’t make them like they used to”.
When it comes to machinery, particularly tractors, the older farming community may utter the same words. There is a growing interest in vintage tractors in Ireland. You can see this by the increased number of tractor runs being organised around the country where you can see tractors, some going back to the 1940’s, motoring along the roads. It is a testament to the endurance of these machines, some of which are still working and functioning on farms.
When we sell a tractor, there are important factors the customer is looking for. Reliability, after sales service and functionality would be some of the key points. How many years the tractor will last for is also an important factor to consider. Another important factor to remember is, even if the machine lasts for many years to come, will its spare parts be still available in 10 - 15 years or more? When I took on the role as head greenkeeper at a local golf club, I inherited a lot of used equipment. One of them was a Ransomes trailing 5-gang mower that was almost 20 years old. As money was tight to purchase new equipment I took it upon myself to try and get this mower back working again. To my pleasant surprise my dealer was still able to get the necessary brand new parts needed.
A recent study on tractors over 90HP by LECTURA, a German based machinery data company, was carried out on used tractors. A questionnaire survey took place during March/April this year. They took into account models and model series of the most popular tractor manufacturers and evaluated their residual values development (the difference between the current value and a predicted value of a machine) in order to find out which brands or models retained their value, even after several years, to find out if they appear to be good investments. The research was made using offer prices analysed through the used-machines market and 45,000 data points for the study.
The age of the tractor and the operating hours, were key factors to determine the residual value. Lectura hope that the results of the study might bring important information about trends and the development of machinery prices over time to both machine buyers and sellers.
How long is a reasonable time to have a machine before replacing it? This depends on who the customer is. For example some golf clubs take the option of doing a five-year deal with a their supplier. After five years the machines are replaced with new ones and so the cycle continues. This may appear to be an expensive option for smaller clubs as they may not be able to afford this option but it can save money in the long term. Reliable machinery is needed to maintain courses to a high standard. Spending time and money repairing older machines can prove more expensive.
Farmers, on the other hand, will hope to have a tractor operating for a longer period of time. They will be looking for a machine that they can rely on and that their local dealer will serve them well in the coming years with after sales service.
For those of you travelling to SALTEX this week. I hope you have a safe and pleasant trip.
