Commercial mower depreciation

Discussion in 'Lawn Mowing' started by fredmullegun, Apr 12, 2010.

  1. fredmullegun

    fredmullegun LawnSite Senior Member
    Posts: 317

    If a mower looks clean and seems to be only lightly used but is 5 years or so old, a large percentage should be taken off of what they go for new still right?

    Basically in the used market I see either beat to hell at "cheap" prices and still looks good to very good and almost new asking prices. Like less than 20% off.

    I was thinking even if lightly used, it is still a USED mower and should be 40% off of new ah?
     
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Yeah, they depreciate about the same as cars in my book,
    something like 90% of ALL vehicles for sale are over priced, too.

    So a 5 year old mower should sell for no more than 1/2 the price of new, heck the dang thing
    drops 30% of its value the INSTANT it's purchased, then about 10% every year after.
    That's a rough guide I like to use, doesn't apply in all cases but it helps.

    So lets say a mower that sold new for $3000, drops to 2000 out the door and I don't care if the meter has 1 minute on it.
    A year later 1800, two years 1620, three 1458, four 1312, five years later ~1200

    Now you and I, we won't find many sellers thinking this way :p
     
    Last edited: Apr 12, 2010
  3. fredmullegun

    fredmullegun LawnSite Senior Member
    Posts: 317

    Yeah you went to 50% I was saying 40% but I think 20% is just crazy. the warranty is long gone which is pretty huge on these machines. Plus these things do still age, even when not running.
     
  4. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    That is correct, I know for a fact with automobiles parts can and DO break even when
    the car sits in a garage and is never driven, they still age as does any machine.

    More so, my machines value depreciates at the very least and if only on taxes EVERY year, whether I use it, or not.

    A 20 year old lawn mower with only 1 hour of use still acts a bit like any 20 year old mower would.

    But there exist a lot of folks who think their stuff is made of gold,
    just have to keep looking, this is why it helps to save the cash and
    be ready.

    Because when you do find a deal, rest assured it won't be around long so if you do see it,
    call right away and be ready to RUN over there cash in hand, ALL of it.
    No playing around, no making offers... See, you got to have the money, even then it can take
    6 months, a year, two, however long, but patience pays off.

    Only way I've gotten my system to work.
     
  5. MrRob

    MrRob LawnSite Member
    Posts: 176

    wouldnt commercial mowers use hours better that years? We only keep our mowers 3-4 years because we put 500 hours a season on em...
     
  6. fredmullegun

    fredmullegun LawnSite Senior Member
    Posts: 317

    Another thing to consider is commercial mowers are designed to be serviced and greased more than consumer. It is a needed feature but in the hands of someone who started it twice last year to hear it run for 5 minutes, it is a slight liability.

    In another words

    5 year old mower = 5 year old mower


    sorry rant off. :(
     
  7. heather lawn sp

    heather lawn sp LawnSite Senior Member
    Posts: 681

  8. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Posts: 4,372

    That's a steep number, IMO, when you start getting higher in hours, but not steep enough on 200-400 hour'd mowers.

    I'd say more like $10 / hour up to about 400 hours, then $7 / hour from 501-800, then $5 / hour after that.

    So up to 500 hours, that'd be like $4,000 off, then up to $5600 off up to 800 hours.

    Then you should be able to do the math after that.
     
  9. fredmullegun

    fredmullegun LawnSite Senior Member
    Posts: 317

    I think a tool using $$$/hour is better to judge your own stuff when bidding a job or something. Any concrete number is going to be relative to you machine. That is why I went with %

    But I am glad it seems unanimous agreement with my rant.
     
  10. heather lawn sp

    heather lawn sp LawnSite Senior Member
    Posts: 681

    nit-picking time. . .

    What happened to your hours between 400 and 501?

    up to 400 hours $4000 off

    Anybody out there bright enough to work out a formula that allows high depreciation at low hours and low depreciation at high hours (a parabolic curve?)
     

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