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Old 10-08-2013, 01:07 PM
Greenmower Greenmower is offline
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Depreciation on Mowers

How does one determine depreciation on mowers. Is it based on life say 5 years or is it based on hours used? If hours used how much per hour. I am looking at a couple of mowers and what to determine a reasonable book value.

Any help would be greatly appreciated.
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Old 10-08-2013, 03:06 PM
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Blade Runners Blade Runners is offline
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What brand/model of mower are you looking at? Specs?

Alot of things go into depreciation or resale value. Hours are probably #1, then type of engine (gas/diesel), life expectancy of mower, demand, features, reputation for durability/quality, overall condition, etc. Diesels will hold resale value better due to life expectancy. Age doesn't affect resale value as much unless there have been major design changes in newer models or it's simply an outdated design (think 3 wheeled mower).

I have noticed that used pricing for mowers that are proven and have a good reputation seems to be based around a theoretical lifetime of 3000 hours. A new mower that was 10k$ will be priced around $5k+/- used with 1500 hours if it is in good shape. This is kind of how I gauge used ZTRs. I'm not saying I will give 5k for a 1500 hour mower but it is my starting point for negotiation if it is a mower of proven design. From there all of the other factors come into play.

When you are talking walk behinds, they depreciate much faster. Personally, I would never buy a new walk behind as used ones are plentiful and cheap. Low hour models can be found very cheap with plenty of life left in them.
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Last edited by Blade Runners; 10-08-2013 at 03:11 PM.
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Old 10-08-2013, 03:12 PM
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Classic Cuts Lawn Service Classic Cuts Lawn Service is offline
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Blade runners hit it on the head. I don't think I can add much else
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Old 10-08-2013, 03:13 PM
Greenmower Greenmower is offline
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My mower was stolen so now I am battling the insurance company and trying to gauge how they will come back as far as depreciable value. Have you had any dealings with such and how they will value?

Do you know of any sites where I can gauge market value of mowers to counter act the insurance company if they low ball?

Thanks for your reply.
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Old 10-08-2013, 03:35 PM
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Blade Runners Blade Runners is offline
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Riding mowers 14.3% per year depreciation with a lifetime usage of 7 years.

Hopefully the tax man uses those same numbers
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Old 10-08-2013, 04:01 PM
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shadetreelawns shadetreelawns is offline
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Quote:
Originally Posted by Blade Runners View Post
Riding mowers 14.3% per year depreciation with a lifetime usage of 7 years.

Hopefully the tax man uses those same numbers
My stuff was stolen a few months back. My insurance company have me the opportunity to give them a said value. I had two walker and I had them listed at what I paid for them. All my handhelds where depreciated and given a expentency of 10 years. So a backpack blows that was 500 was 5 years old they paid me 250. I had some older model stihl stuff that was not made anymore and they went as far to searching eBay and finding values on those, I got taken advantage of those models.
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Old 10-08-2013, 04:07 PM
Greenmower Greenmower is offline
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Good to know Shadetree.. After talking with them I got the same impressions that they were going to be a little flexible.

As with cars insurance companies will base the retail value on Keelys blue book. With mowers is there such a book? It seems like they really have nothing to base the value on?
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Old 10-08-2013, 08:19 PM
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puppypaws puppypaws is offline
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Quote:
Originally Posted by Greenmower View Post
How does one determine depreciation on mowers. Is it based on life say 5 years or is it based on hours used? If hours used how much per hour. I am looking at a couple of mowers and what to determine a reasonable book value.

Any help would be greatly appreciated.
I had a dealer tell me he uses $10 per hr. for the first 100 hrs., $8 per hr. for the next 100 hrs., and $4 per hr. from that point forward as a guideline; with appearance and hard copy maintenance records factoring in as well. He also said if his mechanics perform the maintenance, that also played a part in the equation. This is a formula he uses for trade-ins, but I could see this varying with one owner cash sales.
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