Eight Reasons Why Leasing a Tractor is a Terrible Idea

[@rlmillercpa]

I was in the market for a tractor a few years ago. I rented twice a year for about 3 years. Through renting, I got hours of seat time in Kubotas and JDs, ranging from 38 hp to 60 hp with different transmissions and features. It ultimately helped me decide on what was right for me to buy, I chalked the rental expense up to education. I bought with confidence.

[@wildbill23c]

That's honestly a great idea, especially for someone who has never operated a tractor before. A few rental hours a year will gain you a lot of knowledge and experience especially if you are able to rent different brands and types. Also tells you the size of tractor you will need for the things you are going to be doing on your property.

[@Rless45]

Mike I’m like you, I’d never lease anything! I just recently bought a Mahindra 6075 cab tractor. It’s the first cab tractor I’ve ever owned and I love it! And I can’t wait to get it paid off. So, just to let you know, I think it’s a bad way of investing your money if you lease a tractor. Thanks for all the great videos you do and we will continue to watch.

[@johnmedlin5894]

Never leased a car and never will. Bought my tractor two years ago, financed it. Been fortunate enough that I've been making double payments and it is just about paid for. Like you Mike, I don't like payments! Thanks for the great informative videos, the information that you provide is extremely helpful.

[@stevemartinez6757]

We did a lease once on a vehicle (Jeep Cherokee, don't remember the year). It worked out alright for us since we were in our younger years and the payment was low, but I'm like you in that I would rather "pay off" something rather than make payments. At the end of the lease we basically had "nothing to show" for the money that we put out. Most of the equipment that I have now we either financed or paid cash outright for it. The other thing that I think about is "resale value". Generally a tractor or a pickup truck is going to hold much more value 5 or 10 years down the road. One isn't going to get as much as the original price, but the price is going to be much better than say on a sedan. I own and use a couple of pieces of equipment that I paid much less for than the cost of a comparable unit new. One is a 1979 Ford 3600 tractor that I picked up a few years ago for $3000 that came with a brush hog, box blade and disc harrow (all attachments 6'). The equipment is far from "pretty", but everything works and I use every piece on an almost weekly or monthly basis. I could turn around right now and sell the tractor and implements for the same price that I paid. The only cost that I have in using the equipment is fuel, oil, grease and filters. Another piece of equipment that I bought is a 2006 Bobcat S185 "skid steer". It had around 2300 hours on it when I bought it and came with a regular bucket as well as a grapple. I paid $13,000.00 for it and am willing to bet that I can sell it now with about 2500 hours on it for around the same price or perhaps a little more. Again, my only cost of ownership is just regular maintenance items (I did have to replace some fuel lines and the battery along with fluids, filters and grease). My only other thought is that it is my belief that tractors aren't made like the old ones anymore. I have a late model (2018) John Deere tractor that has served me well, but I'm not real impressed with the quality (or lack thereof) of it. I have had to make some repairs to it beyond regular maintenance stuff, and it's not due to abuse or "operator error". As an example, the lever or "joystick" for the loader just broke off in my hand. While it's covered by the insurance that I have on the machine due to it being financed, I opted to buy the part ($30) rather than take it back to the dealer and have my tractor out of commission for who knows how long. It took me roughly 30 minutes to replace with much of the time spent by me gathering the correct tools to do the job. The bottom line is, I would never lease a tractor.

[@ryanv3751]

I think it makes a lot of sense in a commercial application to lease. It’s definitely not something I would personally entertain for a tractor. Thanks Mike for your unique insight!

[@realreviews9207]

Mike, It's always a good thing when somebody tells the truth, good or bad. Please keep up your honest videos.

[@critical-thought]

I never leased anything in my life either. Do the research, understand your needs and what the options are, then buy it. Worst case, you learn something, sell it, and try again. Best case, it works for 3 or 4 times (or more) longer than the depreciation period.

[@MyClutteredGarage]

Hey Mike. That orange background looks good! I’d also add that unlike a car, you could easily own your tractor for 20+ years. And as we know, also unlike cars, tractors really hold their value. Nice job. -Ed

[@extraacct478]

I bought in 2019. I do not lease cars. I keep my autos 10-20 years and finance them then keep them payment free until repair and reliability issues make them undesirable. This is my first tractor and I fit the “new rural”. I put on 90 and 98 hours my first two years. I intend to keep this one for 20-30 years. Despite no experience I did 6 months of reading and shopping research and the 35hp I bought for 14 acres seems perfect.

[@patchitwood7428]

Thanks for the information. Like you, I typically do not lease anything. I usually save up and pay cash for quality used cars/equipment and let someone else take the depreciation hit.

[@markfroman738]

Yiiiiieeeeheeeeeheeeee

[@coypatton3160]

I have never leased personally. At my stage of life, I doubt I ever will. I have know a few people that did, they did repeatedly with vehicles. It seemed to work well for them as a business expense. All vehicle expense were treated as business expenses, it also allowed them to keep a newer more reliable vehicle for their business-they felt it was a good representation for the business.

[@blessed7fold]

Great video as always Mike.

[@royosborn7869]

Good information - thanks for sharing

[@Bob-vb8lc]

Great info Mike. Thanks for the insider tips on leasing & non-leasing options.

[@davew1919]

Always great information!! Thanks

[@HuserHelpers]

Great points Mike.

[@txtpqb]

bought my tractor used and saved even more money. If I need a piece of equipment for a temporary job, I'll just rent it. Like Mike said, I don't have to worry with the maintenance and upkeep on the rental.

[@garrytalley8009]

Better of the two videos to lease or not lease. In the beginning of car leases they offered zero down. Not so any more and not so sure how tractor leases started; Only time a lease makes sense is if you want the newest latest and greatest and don't mind paying for it. Cars depreciate more than tractors and by looking at resale value of tractors it would never pay to lease. If one buys orange it's zero interest. Most of the time anyway. Nice video.

[@sunhawk61]

Howdy Mike. I work hard for what we have. I have made car payments, everybody does that. I have never leased anything. My tractors and all of my implements I have paid cash for. I don't want payments. Payments cause monthly head aches. You know what other head aches that they create? This is more of a unique thing in the rural world. We use our equipment and sometimes, even though we know better, we put ourselves in a position where bodily harm could occur. Everybody in rural area with equipment has done this. If it happened to me, my wife and family would have added burdens to decide how to handle every payment/contract I am involved with. Why would I want to put added burden on them. Any how, thats my take.

[@johnthorpe1071]

Thanks Mike, I have never considered a lease or a long term rental ( have rented a chipper on occasion by the day). I would rather rent "out" than lease or rent, I like building equity in any of my equipment, vehicles, real estate etc. and I don't like payments either. I understand that new/used vehicles/equipment is in short supply now and the dealer is "after" my truck and make handsome offers to trade but they have such limited inventory that new prices are not attractive.

[@nickg2366]

I bought my Kubota L2501 over 2yrs ago. I was never offered a lease. I would never do a lease because I dont like payments. Especially something like a tractor that holds its value so well. Wouldn't lease a car either because I'd put too many miles on it.

[@markfroman738]

Warbucks!

[@bern_2298]

Hey Mike I have a question what do you think about three phase PTO generators? Are they worth getting or not? Thanks Mike God bless

[@wildbill23c]

If you don't mind piling hours on your tractor, and tying it down to a generator and not being able to use it for anything else without having to unhook the generator then they're fine, I don't think a tractor would use too much fuel overall running a generator like that, and the wear on your tractor won't be hardly anything at all, you just spin that hour meter is all. To me if you have a tractor a PTO generator may make sense if you don't have to use it very often, and you won't have another engine to maintain on a generator that may sit for many months, or even years sometimes. Personally I wouldn't mind a PTO generator, at least one large enough to run the major stuff in the house in an extended power outage, which for me isn't very often at all, so it would sit unused a lot of the time, making owning a regular standby generator or portable generator kind of a maintenance nightmare.

[@henrymiller1820]

Check the horsepower needs. When I looked into it most generators want more horsepower than a small tractor can give. Course you can just not put as much on the generator and be fine, but you could also overload things and it is the tractor that breaks not a cheap fuse.

[@d.a.ballou9740]

I bought my tractor 3 years ago and NO I do not lease my car(s). I'm like you, I prefer to own. I generally run my vehicles until it becomes cheaper to buy another one than to make repairs on what I have.

[@wildbill23c]

That's what I do as well, I'll drive a vehicle till it just doesn't make sense to repair it anymore, or rather just can't get parts.

[@paulmollise1856]

Appreciate the info!

[@bigearny6]

For me I would always sooner buy used what I can afford but keep doing the maintenance on them, wether it be a car or my tractor, what with everything that's gone on in the world you never know when times can get tough and you might not be able to drive your car or use your tractor as much as you like, I have had a certain amount of good feeling knowing the stuff I have is paid for, even if it's certainly not the newest or the best.

[@stephengmeiner3264]

Hi Mike, my wife and I have always leased our vehicles. However we just purchased our first vehicle because we started driving too many miles. We bought a Kubota tractor several years ago and have it paid off, and now I’m considering selling it and leasing an excavator. So I guess it’s kind of funny it’s a bit of a role reversal

[@Windsor1492]

I leased my first electric car because I was unsure about resale value. I would never lease a tractor. I don't see why I should switch tractor so often and I don't like the inspection. Makes sense in a commercial setting when you put 1500 hours on them each year, but not with just 150 hours like I do.

[@Gilikemail]

I have leased all of my trucks for the past 15yrs. But never a tractor. A tractor holds it's value really well and with each trade-in or sale I've done, I've gotten as much as I paid for it.

[@inthedarkwoods2022]

Good video. He's right about the hours per year. I use my tractor a great deal and after a year I'll be lucky to hit 100 hours of usage. I don't really know how anyone is putting 300 hours on a tractor a year.

[@markfroman738]

Unless they did a lot of hay and mowed, raked, baled, and picked up with hay with the same tractor.

[@BG-vq9fd]

Never leased either one.

[@samengler539]

No Mike I have never lease anything. Leasing a tractor I think it would be crazy.

[@markpeterson8769]

I leased a car ONCE.... Was the most difficult and painful experience taking the lease vehicle back, and buying it myself. Ouch! Same car, just older.

[@T_157-40]

I prefer to pay cash and negotiate best deal possible-no interest etc. Its paid for, it’s mine and no bank is going to take it. And the farm will be in a trust so no one is taking farm either. Prices are rising everywhere. Governments are getting desperate for revenue and at some point, costs will rise beyond our ability to address. Mike, Maybe you can address the key points of paying cash and how to negotiate best deal.

[@expatconn7242]

Thanks mike

[@aluckyshot]

Yep, I only use mine for like 110 hours a year. Basing that on 4 years usage.

[@markfroman738]

That’s still some hours in the seat

[@mikehaines6176]

I have leased vehicles -- I won't again. There was never any question to buy/lease my tractor. My use levels don't support leasing. I understand someone who throws a few hundred hours on big tractors while farming would do it. It makes financial sense for them and newer equipment doesn't break down as often.

[@dstrait22003]

whats the best way to sell a tractor. taking it back to the dealer?magazine/farm machinery ad?

[@TractorMike]

Try Craigslist. Some dealers do consignments, but as hot as the tractor market is right now I'd try to sell it myself if I were you. Good luck!

[@houndsmanone4563]

I don't lease, Mike. Enjoyed your video.

[@darrencraft7443]

I would like to see a video discussing manufacture warranty versus aftermarket warranty common issues that are covered common issues that are not covered and when should you receive a loaner while warranty is being performed

[@TractorMike]

I'll put that on the list Darren. Thank you for the idea!

[@Noah_E]

It's very simple. If it's likely to fail, it isn't covered. If it moves, anything that happens to a part/system will be considered normal wear/tear and not covered. For the most part, warranties are for peace of mind more than a tangible benefit. After 40+ years, I've never had to make a warranty claim on anything.

[@lgl_137noname6]

Okay. Would you now please consider going over +/- of renting tractors ? thank you .

[@terrycastor8299]

No, I don't lease cars. We drive way too much. The mileage charges would kill us. I just bought a tractor, one from your company as a matter of fact, because it was zero percent financing and they were the only dealership that I contacted that would find the tractor I wanted for me. Most either said they had no tractors like I wanted or what they offered had issues I didn't want to deal with. Go Blue!

[@wehunt100]

Buying definitely because Def fluid is horrible on these new tractors

[@AbChauhan]

Hey Mike what is the difference between mahindra and ytm tractors, their looks and specs are similar.

[@TractorMike]

They may be the same, depending on the model. There are a few tractors that TYM builds for Mahindra.

[@AbChauhan]

@@TractorMike oh, I thought mahindra may be building for TYM because its manufacturing giant in terms of no and holds many brands of the world in its subsidry list. May be their JV splited apart. That's why we are seeing them separately. Thank you sir for reply.

[@earlyriser8998]

never leased anything either

[@hoosierbuckeyedaddy]

Nice video series on leasing, Mike. I leased an SUV years ago. It wasn't a terrible experience for me, but I would never lease a vehicle again - car, truck or tractor. No payments is a nice way to live. Seems par for the course with you ending up as the goat in your story in the first video - crap rolls down hill! Lease programs are designed to make money, and to create a steady demand for new tractors as leases expire. Maybe the tractor company contracted with a finance company on the lease transactions, and the terms were such that the finance company made all the money. That's on the tractor company leadership, not the salesman!

[@davidpennington9125]

Mr Mike there are 168 hr in a week we put 1000s of hr in year. I would never lease a tractor

[@michaelmactavish1728]

my dealer here only charge 5% interest at the kubota dealer wich aint bad wich deere here rediculas wich they charge 35% intrest wich pain for the wallet

[@semco72057]

I am glad that my tractor was financed and have my second tractor nearly paid off and I would not lease one.

[@jonathanwalkup4010]

That question about would I lease a tractor? Ehh! I doubt it. I have always heard that leasing is the most expensive way to own something. If you own something and a few years later you decide that you don’t need it anymore at least then you can sell it and get some money back.

[@wildbill23c]

I don't lease anything. I cannot fathom paying someone to rent a vehicle or equipment forever, doesn't make any sense at all...I also don't buy new vehicles, I'll let someone else take the massive depreciation hit signing the papers on a new vehicle. On a tractor, I'm not so sure I'd want to buy someone's used tractor, what have they done to it, or not done to it type thing....lots of things on a tractor that can be beat up, and damaged, and somewhat covered up. I would rather buy a new tractor and I put all the hours on it myself and maintain it and know what's been done to it. Then again I don't buy things for a year or 2 then sell, or trade in...I keep stuff for decades.

[@jeromelittle7075]

With a business in place lease payments are tax deductible

[@joshmcdaniel9519]

I would never lease anything I hate payments.

[@jerryburgess977]

I have never leased, and never will. I want to pay for it and be done.

[@williamhaynes7089]

With a 5-6 year engine warranty on new tractor, Buying is my choice

[@PeeterPuncher]

I never leased anything, I like to own what I've been paying on.

[@buzzsah]

Buy it, take care of it, and then you can sell it, to recoup you payout

[@kdegraa]

I’ve never leased a car and don’t think I’ll ever will. I’d rather drive an older car that I own.

[@dennisclark1927]

You missed the BIGGEST reason to not lease a tractor - If you like to tinker and improve/modify things, do not consider a lease unless you make your modifications look like factory items.

[@patdaugherty7978]

I've never leased a car. I wouldn't lease a tractor. Unlike a car, with regular maintenance, my tractor should outlive me. I'll get it paid off and hope not to ever have tractor payments again.

[@4x4Moses]

There's really no such thing as "zero percent" financing. The interest value is included in the purchase price. Also, I would NEVER lease a tractor or automobile.

[@oilyragsgarage7200]

Ahhh give a new tractor lease a miss. Get a Ford 8N👍.

[@alanclark6761]

Never lease because you are always at the mercy of the dealer. Ownership is the American way.

[@shawnmontgomery1088]

Lease = never

[@quickstart-M51]

You don’t know what interest rate your paying unless you know simple math. Now-a-days that’s a lot to assume.