2015 High-Hp. Row-Crop Tractor Depreciation
This month, I searched the depths of data for insights into high-horsepower row-crop tractor depreciation. Specifically, 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.
Seven manufacturers are represented in the 22 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
Consider your region and specific usage conditions before making any decisions based on averages. They can be misleading because of significant differences in values by region. For example, some high-horsepower tractors in the western U.S. are run year-round, while the same model in Saskatchewan might be idle for six months per year. These variances in usage by region will impact the regional values and the averages used here.
Data is provided by Iron Solutions and is based on retail transaction sales data provided by ag equipment dealers across North America.