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Antique Steel Wheel Tractors - Old Iron Lugs and Cleats Photos and information about antique steel wheeled farm tractors. This is where to find the heaviest of Old Iron tractors.

Antique Steel Wheel Tractors - Old Iron Lugs and Cleats

Is old Iron a good investment?


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  #1  
Old 09-13-2017, 01:27:23 PM
oldironlindy oldironlindy is offline
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Default Is old Iron a good investment?

So we just had our annual 401K meeting at work. I contribute a fair amount to that but the experts at the bank say you should keep increasing your contribution percentage. Personally I would rather buy more old iron with the money and enjoy it. My grandpa always sad that he wished he would have bought some early tractors or 30's Packard cars in the 60's. and my dad could have retired at 50 if he would have hung on to his roadrunner and super bee. I am 36 by the way. Do you think that similar opportunities exist for my generation? Also curios if anyone has retired early because of a wise purchase they made when they were my age. Thanks!
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Old 09-13-2017, 01:51:08 PM
David Hoover David Hoover is offline
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Default Re: Is old Iron a good investment?

This weekend, go to your bankers house and spend some time with him. Next weekend, go spend it with a tractor guy. On the third weekend, decide who you had the most fun with. Money is the tool you use to fix old iron. On the fourth weekend, invite your banker to your tractor friends place. I'm sure he could use some fun in his life too.
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Old 09-13-2017, 01:51:17 PM
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Chris Epping Chris Epping is offline
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Default Re: Is old Iron a good investment?

Personally I wouldn't look at buying old iron (or any collectible) as an investment. It's a hobby, not a mutual fund. A lot of this stuff hasn't gone up that much through the years. Historically the really good stuff has, but even that has seen somewhat of a correction the past few years. Many of the folks in recent years that bought high priced iron thinking it could do nothing but go up, have been disappointed. But they usually weren't true collectors, they were investors. If you're genuinely interested in it, buy it, if you can afford to do so, after you take care of your responsibilities at home/business & planning for your future. If it's worth more when you or your heirs sell it, great! but if it's not you will still have fun and enjoy owning it if you're a true collector. There's a lot of entertainment value in this hobby.

Yes, more than likely there are things you can buy today that will be worth a lot more in the future, but no one honestly knows what those things will be.
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Old 09-13-2017, 02:03:28 PM
G Willikers G Willikers is offline
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Default Re: Is old Iron a good investment?

I remember buying each tractor I have now and thinking I must be nuts for spending that much money! Over time, they have increased in value many times over, although, it really doesn't matter what they are worth, as I have no intention of selling them.
We have talked about this very thing among collectors locally. The consensus has been that if we ever reach a time when the old iron has little or no value, then there will likely be larger problems in the broader world and it won't really matter.
Our equivalent to your 401K is called RRSP. It acts as a tax deferral, but with interest rates today, there is not a great return unless you go to riskier investments. If you can expect a decent pension aside from that, or, like many, you will be working past 65, then you may not need those deferral savings.
You could cash in all the old iron and have a nice pile of money to play in like fall leaves, but the fun would wear off pretty fast, whereas an old tractor offers a lot more over a longer time.
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Old 09-13-2017, 02:12:40 PM
Jim Walker Jim Walker is offline
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Default Re: Is old Iron a good investment?

Love the comment. Jim
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Old 09-13-2017, 02:58:02 PM
Ronald E. McClellan Ronald E. McClellan is offline
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Default Re: Is old Iron a good investment?

No not as an investment! I remember going to an auction about 10 tears ago where there were several large steam engines 4' , 5' , 6' dia flywheels That the scrapers were buying. I have also heard that scrapers have paid more for tractors than collectors would pay. When I go to auctions I see mostly gray haired old men. When these guys are gone , who are going to buy the engines , The scrapers? I go to this one auction every week and the antiques that used to bring thousands are now bring hundreds. This trend is happened over the Whole antique and collectible area. The young people have their heads so far buried in their electronic games and texting that they can't see anything else. And they are not learning that there other whole worlds out here. Ron
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Old 09-13-2017, 03:07:42 PM
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BMyrkle BMyrkle is offline
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Default Re: Is old Iron a good investment?

So many variables would have to be considered that I don't think you could make a reasonable case for investing in old iron.

You will have to find a piece that is affordable/cheap to buy today, but that you believe will increase in value over time. How much time? 20 years? Can you even predict the state of the hobby that far out?

Can you simply store it that long and hope the value increases? Or, are you going to fix it up? That costs a lot and could maybe increase the value, but maybe not your net investment return.

Are you going to run it, show it, transport it, insure it, etc? Those all cost, too, and every dollar you spend on it now that doesn't directly increase its value in the future is a wasted dollar if investment is your goal.

Plus, you need a building to store all this stuff in. Maybe you already have one bought and paid for, but if you don't . . . more $$$ spent.

The McCormick-Deering 10-20 that we gave $250 for in 1985 is worth what today? $500? $750? Is that a good investment? That scenario seems more likely than stumbling onto something rare or valuable that no one else knows about so you can get it cheap. That doesn't happen often enough to plan a retirement on.

And, as stated above, if you buy stuff you like and then don't want to sell it later, it's a liability, not an asset.
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Old 09-13-2017, 03:10:31 PM
Jason W Jason W is offline
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Default Re: Is old Iron a good investment?

What fun is your investment if you have to sell it to retire anyway? You're far better off investing in your 401k than in tractors anyway. Your value will grow much faster over the same period.
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Old 09-13-2017, 03:22:18 PM
oldironlindy oldironlindy is offline
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Default Re: Is old Iron a good investment?

I should probably clarify that I am not saying that I would stop contributing to conventional retirement plans. I feel that I am on track to have enough saved up to support ourselves through retirement. I understand that there are risks In any investment but I think I would get more enjoyment out of my money on the long run if I bought more old iron than I would if I had a bigger 401k account when I retire.
As far as "no young people like old Iron" I call B.S. I was at The Rollag show Labor day weekend and there were tons of your families (including mine) working on and showing machinery. I saw more young men and women running steam engines than older folks.
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Old 09-13-2017, 03:43:12 PM
Don Selmer Don Selmer is offline
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Default Re: Is old Iron a good investment?

Words I live by: My Philosophy: Really

I'm out spending my kids Inheritance on my 401K plan, when I die they can have what's left from my estate sale.

I'm going to enjoy it while I can, I can't play with money. I bought things because I wanted to play with it not because of a real investment. I really don't care what it's worth 10-15 years from now. I didn't buy it for an investment (but it sure don't hurt)

The late "Andy Kruse" use to tell me, "if I wanted to look at money, I'd go to the bank."

In Oshkosh, Wi. 1982 I helped a good Engine friend who was dying of Cancer have an auction. He died shortly before the auction. A few years before then the economy was rough at that time also. He said to me "Prices of everything is dropping, I should sell all my engines while I can while there still worth something. I told him "if nothing is worth nothing at least you can still go out to your shed and run some engines to have fun" Needless to say he kept the engines to the end.

Russ, my good friend, Rest in Peace

Last edited by Don Selmer; 09-13-2017 at 03:57:20 PM.
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