Question: John Deere Harvester Works factory notes S Series combine will have a life of 17 years and 5 different owners. Do you agree? Also, as best as you can estimate, what would be a fairly typical hours for each trade and percentage value change for each of those next 4 transactions (typical combine)?
I’m not sure I agree with the 17 year lifespan with 5 owners. There are several 50 and 60 series combines still working today. In most cases the first 2 owners will put the most hours on the machine year-over-year. As the machine ages it will go to smaller farmers who will put fewer hours on the machine year-over-year.
I would expect by the time the combine gets to the 17 year old point. it could have 4,000-5,000 engine hours and 2,500-3,000 separator hours or more. The depreciation of the machine slows over time. By the time it reach 17-20 years old, typically the value of the machine is 10-20% of the original value when the machine was new. Hours and machine condition are going to be the biggest factor.
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