Another deal with leasing a harvester early, is that you might be able to afford to buy a small/old harvester, but it's going to take longer to do the harvest, and will limit your farm expansion ability as additional fields may use up the available harvest time. But you should have the cash to rent a medium harvester initially (for a couple months at a time for a few years), which you won't need to put as many hours on(!), and as the farm expands (using cash not tied up in a piece of equipment you hardly use), each year you have the option to rent slightly larger harvesters each year. One word of warning though, don't use that leased harvester to do contracts, the contract payment will rarely cover the additional hourly usage you're adding to it!! With lease to own, it's a good way to get some kit you want to keep now, but don't quite have the cash to pay for outright. My 25kl milk tanker is on lease to own, because it's much faster and has a larger tank than I could buy and drag behind my slow tractor! Eventually it will be paid for, though I'm only putting on about 5-10mins/month with it, so the residual value is not decreasing very quickly.
Very good point about the combine, much better to have that capital invested in land too. I need to dig in to lease to own more, as I'm not sure how the payments work out for low hours kit
I love videos like this! I’d love to see a video on strategies on making money on the farm to be able to expand your fleet and land. For example what to do in a year so make the most profit to be able to add land for the following year, or increase the amount of machines owned.
I think the biggest issue is the Opportunity Cost of buying a large piece of equipment that could be used to buy additional fields which should generate even more profit.
@@DisTurbedSimulations Tell me about it! Think I had a £20k one recently which is daft, I know you can get mods to change it but that's several months worth of leasing
The main thing that leasing helps with is CASHFLOW rather than value for money - at the start of the game you may not have cash to buy everything - over the longer term you should be able to stabilise your cashflow
Interesting video D/S I never thought off leasing have you considered that if you lease something then give it back I think it comes up in the sales or it use to then you could buy it secondhand just a idea keep up with the great work 👏👏👍👍⭐️⭐️⭐️⭐️⭐️
Another deal with leasing a harvester early, is that you might be able to afford to buy a small/old harvester, but it's going to take longer to do the harvest, and will limit your farm expansion ability as additional fields may use up the available harvest time. But you should have the cash to rent a medium harvester initially (for a couple months at a time for a few years), which you won't need to put as many hours on(!), and as the farm expands (using cash not tied up in a piece of equipment you hardly use), each year you have the option to rent slightly larger harvesters each year. One word of warning though, don't use that leased harvester to do contracts, the contract payment will rarely cover the additional hourly usage you're adding to it!!
With lease to own, it's a good way to get some kit you want to keep now, but don't quite have the cash to pay for outright. My 25kl milk tanker is on lease to own, because it's much faster and has a larger tank than I could buy and drag behind my slow tractor! Eventually it will be paid for, though I'm only putting on about 5-10mins/month with it, so the residual value is not decreasing very quickly.
Very good point about the combine, much better to have that capital invested in land too. I need to dig in to lease to own more, as I'm not sure how the payments work out for low hours kit
I love videos like this! I’d love to see a video on strategies on making money on the farm to be able to expand your fleet and land. For example what to do in a year so make the most profit to be able to add land for the following year, or increase the amount of machines owned.
There are so many ways to tackle that, and they vary by map and mods you play with.
I think the biggest issue is the Opportunity Cost of buying a large piece of equipment that could be used to buy additional fields which should generate even more profit.
Yes, I'd rather spend the money on land or animals. Especially with the things that are used one or two days a year
I hadn't thought about maintenance and fuel costs before. Very good point actually, great video mate ;)
And some of those maintenance costs aren't cheap.
@@DisTurbedSimulations Tell me about it! Think I had a £20k one recently which is daft, I know you can get mods to change it but that's several months worth of leasing
Yup I just finished that video. I might have to do a little addition of something like 10 hours leasing vs repairs from 10 hours work 🤔
@@DisTurbedSimulations for the frugal farmer I think that's going to be quite interesting!
For those of us not #cartechrich farmers
Cotton harvesters are the perfect lease. You need one big harvest and your spinnery is full for years.
Interesting video that really puts the vehicle finances of FS22 into perspective.
Thanks, it's got me thinking about which things to lease and which to buy when money is short
The main thing that leasing helps with is CASHFLOW rather than value for money - at the start of the game you may not have cash to buy everything - over the longer term you should be able to stabilise your cashflow
this isn't about CASHFLOW, it's about VALUE. there are situations where even if you have the cash it's more economical to lease than buy
Buy tractors, lease implements, better again lease to own. But again depends in the situation
I agree on the buy tractors. Lease to own is not always the best option I don't think
Nice video. I mostly buy and when money is tight, I use lease to buy. 😁
I do think there's something nice about owning your own kit.
@@DisTurbedSimulations yes. That’s so true. But sometimes there’s just not enough money. 😁
Interesting video D/S I never thought off leasing have you considered that if you lease something then give it back I think it comes up in the sales or it use to then you could buy it secondhand just a idea keep up with the great work 👏👏👍👍⭐️⭐️⭐️⭐️⭐️
I don't think it's guaranteed to come back in the sale, but that is a good point. Leasing then pickup up for 50% might be cool
I once leased two Lexions with headers on Red River and it cost me $175,000! I use lease to own now which is more realistic to me.
Like lease to own in the right situation
Cool video thanks
Thanks
super thx Mr D
hope it's helppful
@@DisTurbedSimulations always, you are my Master Yoda😂
Doesn’t matter to me but I think you should. We could always use more spreadsheets:)
There are never enough spreadsheets
@@DisTurbedSimulations 🤓
Lease to own mod?
It's on modhub.