The second-hand tractor market has seen a huge surge in demand, with prices for more simple, mechanically robust machines rocketing during the past three years.
Buyers are not necessarily collectors, but increasingly working farmers, both large and small, looking for machines that are reliable, don’t have an array of electronics, and are capable of being repaired by a local mechanic.
“When compared to a new machine at well in excess of £100,000, paying anything up to £50,000 for models such as a John Deere 7810, 6920 or 7530 appears to be good value,” the director of Acres Insurance Brokers, Nigel Wellings, said. “Granted, they’re likely to have a few thousand hours on them, and probably won’t become the farm’s mainline tractor; however, as a secondary machine, doing 500 hours or less per year, they actually represent a good investment.
“These tractors are unlikely to depreciate in forthcoming years and, in actual fact, may even appreciate. There’s no way a new machine won’t depreciate.”
Many farmers will have such a modern classic on their fleet, and will have owned it since new or nearly new. However, Acres Insurance Brokers warns, when reviewing values for insurance purposes, such tractors are often completely undervalued.
“In the past few months, we’ve dealt with a number of fires where this type of tractor was badly underinsured,” Mr Wellings said. “For example, we saw an MB Trac 1100 insured for £8,000 when the value was £16,000; a John Deere 6410 insured for £15,000 when the value was £21,000; and a New Holland 7840 insured for £8,000 when the value was £14,000.
“All the customers lost out, as each of these machines was a write-off and the insurers only paid out the insured value. The annual premium increase on each of them to have been insured for the correct value would have been in the region of £50.”
As specialist farm insurance broker, Acres Insurance Brokers is reminding clients to ensure that these older, classic modern tractors are insured for the correct values. The additional premium cost is marginal but the benefit in the event of a claim can be substantial.
Acres has compiled a list of future modern classic tractors where it feel values will increase in future, these include:
- John Deere 6620, 6820, 6920, 7530, 7930, 8520, 8530 and any 10- or 20-series model more than 100hp.
- Fendt 716 (1998-2011), 820 and 936.
- JCB Fastrac 2140, 2155, and 3185.
- New Holland 7840, 8340 and TM 150/155/165.
- Case 5140/5150 and all Magnum models.
- All MB Tracs and Unimogs.
- Challenger 45 and 55.
For more information visit: www.acresinsurance.co.uk.
