Kubota Compact and Sub-Compact Tractors that Hold Value
The compact and sub-compact tractor market is growing. It is estimated that by 2022 the market for 40 HP and lower tractors will grow by more than 221,000 units with a compound annual growth rate of 4%. This information is from the Global Agricultural Compact Tractor Market report from 20191.
It seems that the manufacturers already knew this fact, judging by the sheer number of models they have produced in recent years. In the 2018 model-year alone, six of the biggest manufacturers produced over 70 models in the compact or sub-compact tractor category. For the purposes in this article we’re defining the category as those tractors with less than 40 horsepower and having a new selling price under $25,000 USD.
In this article we’re going to focus specifically on the most popular Kubota compact or sub-compact tractor models within this category to see what we can find about depreciation rates between eight popular Kubota models.
Estimated New Kubota Tractor Selling Price
|Estimated New Selling Price ($US)|
Kubota L 3560
Kubota B 2650 HSD
Kubota L 3901
Kubota L 3301
Kubota BX 2670
Kubota B 2320
Kubota BX 2370
Kubota BX 1870
First, let’s look at the estimated new selling price between the years of 2014 and 2018 of these eight Kubota models. Listed above, from most to least expensive, is the average new selling price from model-years 2014 to 2018.
If we look at average new selling prices across multiple years, we discover the new selling prices over the years 2014 to 2018 was surprisingly flat, with only a small fluctuation in the L3901 and L3301 models around the 2015 model year.
Depreciation of Kubota Compact and Sub-Compact Tractors
You skipped ahead to this part didn’t you? I don’t blame you. Time is short and we’ve got equipment that’s losing value as we speak. Let’s get to it!
The depreciation percentage from new selling price to the used cash value of each unit is shown below. The greatest depreciation over the 5 year period is the BX1870, the smallest and least expensive of the set, with a 5 year depreciation of 49.0%. The model with the least depreciation over the same period is one of the two most expensive models, the B2650HSD with a 5 year average depreciation of 37.7%.
We know that the more expensive model depreciates less in percentage but let’s compare the actual dollars lost to depreciation over 5 years of these two models.
|Model||Average New Selling Price ($US)||Used Cash Value After 5 Years||Lost to Depreciation|
|Kubota B2650 HSD||$ 23,007||$ 14,339||$ 8,668|
|Kubota BX1870||$ 10,118||$ 5, 159||$ 4,959|
|Difference||$12,889||$ 9,180||$ 3,709|
If you’re thinking of buying new, the difference in new selling price between the bigger 26HP (BX2650 HSD) and the smaller 18HP (BX1870) model is substantial, $12,889. The bigger model is over twice the price at $23,007. But if you have the capital to invest, and the need for the more powerful tractor, you could be pleased to discover the bigger tractor retains its value better than the smaller one. In fact, the larger tractor, from a ‘net cost’ perspective, only cost $3,709 more than the smaller tractor after 5 years of typical use.
Used Kubota Tractor Implements and Options Affect Value
There’s a lot of variables to take into account when valuing a machine. Especially when it comes to used Kubota compact and sub-compact tractors. These Kubota models have a huge assortment of implements or attachments available. From mowers, loaders, blades, snow blowers, pallet forks, you name it, there is probably an implement for it. Compact and sub-compact tractors can be configured in different ways that can have a big effect on their value. Because the value can be impacted by these configuration options (and by the hours of use on the meter), it is best to get a specific value for your tractor or the tractor you’re purchasing with IronAppraiser®. IronAppraiser® is the online tool that will give you a value adjusted for your specific Type, Make, Model and Year and includes adjustments for specific options, hours usage and the region of US or Canada.
About the Data
The figures used in this analysis are normalized to the most common configuration sold as reported by dealers across North America. For example, if most Kubota B2320’s were sold with a loader attachment, then the normalized value here will reflect that attachment value. The data in this analysis comes from Iron Solutions and the industry-standard data in their Iron Guides® product. You can think of it as the Tractor Blue Book of farm equipment values.
Do you have a compact or sub-compact tractor you’re interested in buying or selling? Find out its value with an appraisal from the IronAppraiser® Outdoor Power Equipment tool here or in the current issue of the Outdoor Power Equipment guide book, over 530 pages of OPE model valuations.