Scott City KS | dpilot83 - 9/4/2024 06:18
All good points.
The reason I was evaluating this is because I am seeing some tractor leases that appear to be less than what I would call the true cost of ownership (a cost that takes opportunity cost into account).
I’m trying to decide why I wouldn’t pursue one of these leases. Need to make sure I actually need a tractor for as many hours as the lease is but if that last piece of the puzzle falls together it seems kindof hard to ignore.
I have always been opposed to leases on principle before but I’m not sure what to think right now.
I'd be interested to know what you come up with.
Years ago the local dealership (probably at mother Deere's behest) was pushing leases hard. They wanted to take my trade difference split that out over a lease. The number was attractive, but I had no equity at the end. Accordingly, those leases WITHOUT a trade were much less pleasant.
I've never looked too hard at leases, but maybe I should now since interest rates are what they are. If a company can get cheaper capital than I can, I can maybe see it working. |
New equipment cost per acre
