High-Horsepower Row-Crop Tractor Depreciation - Iron Solutions

High-Horsepower Row-Crop Tractor Depreciation

By Iron Solutions Posted in Resources | Tractor Blue Book

August 02, 2019

Photo by: David Ekstrom This month, I searched the depths of data for insights into high-horsepower row-crop tractor depreciation.
“I focused on the predominant manufacturer models in the 270- to 320-hp. range of the 2015 model year in North America. These units are now 3 (going on 4) years old, and there are some depreciation trends playing out.”

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Seven manufacturers are represented in the 22 high-horsepower row-crop tractor models listed here and considered in my analysis. These include the Case IH Magnum 280 and 310; Challenger MT665E and MT675E; Fendt 828, 927, 930, and 933; John Deere 7270R, 7290R, 7310R, 8270R, 8295R, 8320R, and 8345R; Massey Ferguson 8732 and 8735; New Holland T8.320, T8.350, and T8.380; and Versatile 290 and 310. The average new selling price across all these models back in 2015 was $253,656. The average depreciation over three years from the new selling price was 34.5%. Spreading that depreciation over three years gives 11.5% depreciation per year over three years. So, who beat the average? Case IH, John Deere, and Versatile all had models that beat the average depreciation of 11.5% per year, with the best performer being a John Deere 8295R with only 9.4% average depreciation per year. While some models in the list performed below the average, no models fared worse than 13.2% average annual depreciation.

Average Annual Depreciation

9.4% 11.5% 13.2%

View the entire article on Successful Farming, under the Machinery Insider column.

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