Well some of you got it figured out. Those tractors are LEASED from the equipment manufacture. I have done some of these leases for tracks in the past. The Manufacture looks at how each model retains resale value and how many units are sold in that market.
An example would be the State mowing crew tractors. They have to have MFWD and a cab. A 75 horsepower tractor with a cab is not a great seller. So the residual value is lower. Therefore the lease cost is higher. The lease is figured as a percentage using the net cost of the equipment and the residual value.
The best value, 10 years ago, was the 125 horsepower tractor. They had the highest residual value. I could lease you a 125 HP tractor cheaper than a 75 HP one. This was if you only wanted to used it for three years and less than 300 hours per year.
IF you where planning to buy it at the end of the lease term than the lower the sales price the lower the lease + residual.
Businesses with a HIGH visibility can get a better factory discount. This is based on the fact that seeing the tractors at places like the race track is advertising.
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Today's Featured Article - Grain Threshing in the Early 40's - by Jerry D. Coleman. How many of you can sit there and say that you have plowed with a mule? Well I would say not many, but maybe a few. This story is about the day my Grandfather Brown (true name) decided along with my parents to purchase a new Ford tractor. It wasn't really new except to us. The year was about 1967 and my father found a good used Ford 601 tractor to use on the farm instead of "Bob", our old mule. Now my grandfather had had this mule since the mid 40's and he was getting some age on him. S
... [Read Article]
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