How Much is My Tractor Worth? How To Find Out

Tractors are mostly used on farms or places that necessitate machinery, such as construction sites. They are also designed for hauling farm implements or machinery, and these vehicles have multiple different functions based on their varying size and design. These factors along with their brand and availability can make the price of a tractor vary drastically.

There are a few factors you need to understand before figuring out how much a tractor is worth.

How to Find Out What a Tractor is Worth

The largest factors to keep in mind are the tractor’s condition (Whether it is new or used) and its level of depreciation. Also keep in mind that the price can be negotiated with the dealership. Let’s break these down further.

How Much is a New Tractor Worth?

New Tractor prices can roughly be determined by assessing the tractor’s engine power. For example, larger tractors with engines that have 100 horsepower (HP) or higher could cost $75,000-$150,000 or more while smaller tractors with less than 100 horsepower used for small-scale farming could reach up to $50,000.

There are new tractors that are used for large-scale farming that cost up to $200,000, while some with the newest high-end technology cost more than $400,000 at times.

On top of the base price for new tractors, you can add on additional features that provide extra value or increase the utility of the tractor. Loading buckets or backhoes can sometimes increase the price by $5,000 or more depending on the size of the tractor. Transmissions can also be an added cost as well. Other options include cab features like ergonomic seating, Bluetooth, and more.

How Much is a Used Tractor Worth?

Used tractors don’t provide the option for selecting additional features at the point of sale, but these features are still a factor that goes into the deciding the worth of the tractor. On top of that, the make, model, engine type, age, and size of the tractor are what determine the price for used tractors.

Used tractors are typically easier to fix than newer tractors that have new technology within them. Also, engine power is the largest factor with tractors with smaller engines that have 40-50 horsepower valued between $1,500 and $50,000 while larger tractors with 150-175 horsepower being valued between $15,000 and $250,000.

There is a large gap between these used tractor prices because of the differences in make, model, engine type, age, and size as well as additional features. Some used tractors could be more than 50 years old!

You should consider the lifespan of the machine and know that it is best to not buy a tractor that has very little lifespan left.

How To Calculate Depreciation of Tractors

All tractors undergo depreciation. It is the way manufactured machinery works.

Depreciation is the allocation of the cost of an asset over the time it is being used.

It is estimated that tractors depreciate at an annual rate of 8.3%. This is lower than depreciation which is allowed by current tax laws.

Average farm machines are estimated to have an economic life of between 10 to 12 years but a 15 year lifespan for tractors. Every machine has a salvage value which is the sale value of the machine when its economic life is over.

Some of the factors that determine a tractor’s rate of depreciation are the depreciation for income tax purposes, Straight Line Depreciation, and Units of Production Depreciation. Here are explanations of each:

1. Depreciation for Income Tax - “The depreciation expense claimed by a taxpayer on a tax return to compensate for the loss in the value of the tangible assets used in income-generating activities. Similar to accounting depreciation, tax depreciation allocates depreciation expenses over multiple periods” - The Corporate Finance Institute
2. Straight Line Depreciation - “A company estimates an asset's useful life and salvage value (scrap value) at the end of its life. Depreciation determined by this method must be expensed in each year of the asset's estimated lifespan.” - Investopedia
3. Units of Production Depreciation - “assigns an equal expense rate to each unit produced. It's most useful where an asset's value lies in the number of units it produces or in how much it's used, rather than in its lifespan. The formula determines the expense for the accounting period multiplied by the number of units produced.” - Investopedia

Tools to Determine the Value of a Tractor

Fastline provides a large catalog of new and used tractors with pricing information to help you determine the right tractor for you. You can browse the entire selection of more than 11,000 tractor listings and be put directly in contact with the dealerships to negotiate.

For example, if you are wondering “how much is a john deere tractor worth?” you could take a look at the more than 5,000 equipment listings for John Deere tractors to find out. You are able to narrow down with filters such as , location, model, hours used, horsepower, drive type, and whether it is a fair, good, great, or hot deal.

Other Tools

Other tools include FleetEvaluator which is a mobile friendly equipment evaluation tool. The tool explores billions of dollars of assets on the internet to provide strong estimations of tractor and equipment values.