Cost Breakdown: Buying, Running & Resale Value of a Compact Tractor - pt6
- Louise Howard
- Jun 19
- 3 min read
Updated: Jun 27
Welcome to Part 6 of our compact tractor series. If you’ve made it this far through POST 1, POST 2, POST 3, POST 4, and POST 5 you’ve likely got a good sense of what compact tractors can do, and how to care for one.
Now comes the big question: what’s it all going to cost?
This guide gives you a clear-eyed breakdown of:
Purchase price ranges (new and used)
Typical running costs
Maintenance and servicing
Resale value
Whether you’re buying for personal use or as part of a business, this post will help you budget smartly and avoid nasty surprises.
Upfront Purchase Costs (UK Typical)
Tractor Type | Price Range (New) | Price Range (Used) |
Basic 20–25HP | £5,000–£12,000 | £4,000–£9,000 |
Mid-range 25–35HP | £7,000–£15,000 | £6,000–£12,000 |
High-spec 40–50HP | £15,000–£25,000+ | £12,000–£17,000 |
Extras can include:
Front loaders: add £2,000–£3,500
Road registration: approx. £125–£300
Delivery: varies by region
Implements: £500–£4,500+ per tool
Tip: Look for package deals that include loader and one or two implements — they offer better value.
Typical Running Costs
✅ Fuel
Diesel cost: ~£1.30–£1.50/litre (red diesel eligible)
Typical use: 1–2 litres/hour under load
Estimate: £3–£6 per working hour
✅ Insurance
Personal use: ~£100–£200/year
Commercial or on-road use: £250–£600+
✅ Road Tax (if road-registered)
Zero-rated if used for agricultural purposes only
✅ Consumables
Filters (oil, fuel, air): £30–£80 per service
Oil and hydraulic fluid: £40–£100 per full change
Grease, bulbs, belts: £10–£50/year
Maintenance & Servicing Costs
If DIY:
Annual parts: ~£100–£200/year
If outsourced:
Basic service: £150–£300
Full service (fluids, filters, inspection): £300–£500
Breakdowns or part replacements (e.g. hydraulic hose, alternator):
Typical minor repair: £50–£150
Occasional larger fix: £200–£600
Tip: Machines with simple mechanical setups (fewer electronics) cost less to maintain.
Cost-Saving Opportunities
Use red diesel (if eligible) for significant savings
DIY maintenance reduces costs by 50–70%
Avoiding unnecessary features (e.g. cab, climate control, electronic gimmicks)
Buy used implements from trusted sources
Buy from brands with UK parts stock to avoid downtime
Resale Value
Compact tractors hold their value well, particularly when well maintained.
Factors that protect value:
Clear service history
UK-compliant spec (PTO, linkage, road registration)
Brand reputation and parts availability
Loader and attachments included
Typical resale values:
3–5 years old: 70–85% of original purchase price
5–10 years old: 50–70%, depending on condition
A well-kept compact tractor with common implements can sell quickly into the smallholding, equestrian, or fencing contractor market.
Example Cost Scenarios
Scenario 1: 5-acre Smallholder, 26.5HP Tractor
Purchase: £8,700
Loader: £2,500
Implements: £3,000 (topper, leveller, transport box)
Running costs: ~£300–£500/year
Scenario 2: Equestrian Yard, 35HP Tractor with Arena Work
Purchase: £18,000
Implements: £2,500 (leveller, roller, flail mower)
Insurance: £250/year
Annual servicing: £300–£600 if outsourced
Scenario 3: Contractor Setup, 40HP Tractor + Loader
Purchase: £20,800
Implements: £5,000 (forks, trailer, flail, auger)
Running costs: higher hours = ~£1,000/year
Expected resale in 5 years: £15,000–£17,000 if maintained
Summary
Compact tractors are one of the most cost-effective ways to manage land, reduce manual labour, and grow a rural business. While the initial outlay is significant, the low running costs, strong resale value, and ability to do many jobs with one machine make it a smart long-term investment.
In the next part of this series, we’ll help you avoid common mistakes when buying a compact tractor — from overbuying horsepower to choosing the wrong tyres.
