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Nw Iowa | Leases work very well in that instance where there is a big residual, and you can use up the hrs. It has happened twice to us and worked out both times. Biggest issue is when lease ends what is the machinery market, but you have option of buying out the lease. We were lucky on one large lease, lease ended in Dec 18 if I remember , bought a replacement tractor at a farm auction in Aug, way below wholesale, used the lease tractor until hrs were used up that fall, turned in a couple of weeks early so we had no trouble with inspection still be under warranty and hooked up new tractor and never missed a beat. Most of times best leases are when market is most depressed and there are also buys on used so you have to weigh that out where market will be when lease ends. Also have to make sure that you can use up the hrs. Many many leases come back way below the hrs.
Sounds like you got a heck of a buy on a tractor, will a lease beat that purchase? Tractors bought right tend to hold their value very well. | |
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New equipment cost per acre
