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Tractors Buyer's Guide - Pricing

Tractors Buyer's Guide - Pricing

Published: 04/17/2011

» Business Equipment
» Business Services

 

Tractors Pricing

Before you get sticker shock, remember that tractor purchases are long‐term commitments. With proper maintenance, you can expect a tractor to last 20 or 30 years – and decades longer if it's not used frequently. When you consider their life spans and the amount of work they do, tractor price tags will seem much more reasonable.

 

 

At the low end of the commercial equipment range, base model small tractors around 25 HP with no attachments can be found for under $10,000. Expect to pay between $12,000 and $15,000 for a 25 HP tractor with one or two common attachments, such as a loader and a mower.

 

 

Well‐outfitted 40 HP machines are typically around $20,000 to $25,000, and 60 HP models are more like $30,000. These prices include an enclosed cab and 4wd – two expensive but worthwhile options. At the high end of the scale, 100HP tractors can run up to $50,000 or $55,000 with a cab and 4wd.

 

 

Attachments priced separately can vary quite a bit, as well. Simple box blades or rakes are only a few hundred dollars, while loaders can cost $3,000 to $5,000 and up. Backhoe attachments can be over $6,000 on their own.

 

 

Because of the significant purchase prices, most buyers finance their tractor purchases. This is almost always done through the dealership, so get a quote for financing as part of your comparison shopping. In some cases, you may be able to get a better financing deal through a credit union or other lender.

 

 

Avoid the temptation to save money by underbuying: saving $2,000 or $3,000 on your initial purchase is insignificant when broken down over the lifespan of the tractor. Once you have the tractor, you may find more uses for it that you never anticipated, and having a little extra power can be a real boon.

 

 

Most new tractors come with two to three‐year warranties that cover all major systems against breakdowns.

 

 

 

 

Used and gray market tractors

 

 

Because tractors are so reliable, there is high demand and not much supply for used equipment. Used machines that are in good shape don't sit long on dealer lots – and used machines in rough shape are not worth buying.

 

 

If you can find a used machine that meets your needs, you may be able to get a good deal. However, by the time you include a warranty and financing charges, the total price could be close to that of a new tractor.

 

 

Do make sure the dealer will sell you a warranty with a used tractor – even if it's only 30 or 60 days, that will protect you from any serious problems that crop up when you start putting the tractor to work. And when buying, remember not to judge a tractor by its cover – a new paint job can make lemons look a lot more attractive.

 

 

Another tempting way to save money is by buying a "gray market" tractor. These are usually imported machines designed for use in other markets, being sold semi‐legally here. While they can be much cheaper than standard tractors, there are a couple of significant drawbacks.

 

 

One is that the PTO systems are not always compatible with US standards. For example, PTO shafts rotate the opposite direction in Japan, making it impossible to use standard attachments with those tractors.

 

 

A second issue is the availability of parts. Even if you're buying a brand‐name tractor, it can be difficult or impossible to find replacement parts here if it's a model designed for use in other markets. For these reasons, buying gray market tractors is not a good business investment.