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View Full Version : Do you finance or pay cash on new mowers?


South Florida Lawns
08-13-2005, 06:17 PM
Just wondering the most popular route when purchasing new mowers/equipment?

ToroLandscaper
08-13-2005, 06:31 PM
I see people gettin in debt all the time over equipment and i think thats crazy.I never buy a mower unless i have cash to pay on the spot and that also helps with negotiating a price down.

lawnmaniac883
08-13-2005, 06:36 PM
Kinda depends on how bad you need the equipment and how much cash you have access to imo.

grass_cuttin_fool
08-13-2005, 07:22 PM
I financed my tiger cub, Scag had a deal of 0 % intrest and no payment for 6 months. So I used scags money for 6 months and paid the mower off on the 1st payment.
Talking with my accountant this winter, she said I should of paid 1/2 of it on the 1st payment and paid the rest in the next 12 months. I file long form and the intrest would of been deductable and she said I would of had my money to live on if this year had been very dry or if something unexpected came up or just to have operating capital. Quess there are a few ways to look at it, my best answer would be to have part of the money to purchase and finance part of it.

TURF DOCTOR
08-13-2005, 08:43 PM
We financed 1 wb scag this year 12 months same as cash oh they add a 125 charge when you do this you borrow money for a year for a 125 bucks.Paid cash for a wildcat, a scag wb, also a simplicity.

topsites
08-13-2005, 08:53 PM
Now I got mine 12 mos. same as cash and it really is SAME as cash because I told the dealer I HAD the cash (I did) but it would have to wait until October but he said he could do it this way and so I bought it...
So is this financing or cash?

Far as I'm concerned, NEVER buy anything you gotta pay interest on, that's just more work you have to do for free, and for me this includes personal items as well such as my car I don't buy it on payments.

Another reason to never buy car / truck on payments is you can then get minimum liability on it which is a LOT cheaper than full coverage.

freddyc
08-13-2005, 08:58 PM
We financed 1 wb scag this year 12 months same as cash oh they add a 125 charge when you do this you borrow money for a year for a 125 bucks.Paid cash for a wildcat, a scag wb, also a simplicity.


What percentage of the total cost was the 125 bux???? Same as cash??? I'm confused on this one. :dizzy:

MudslinginFX4
08-13-2005, 09:00 PM
I've paid cash for ALL of my equipment but my trucks.... everything added up is probably near $150k now. I actually just bought a new Toro Z master this week, 52'' 23 kawi.

TURF DOCTOR
08-13-2005, 09:24 PM
I was confused also when it came down to the signing he said it is 125 bucks.

grass_cuttin_fool
08-13-2005, 09:36 PM
We financed 1 wb scag this year 12 months same as cash oh they add a 125 charge when you do this you borrow money for a year for a 125 bucks.Paid cash for a wildcat, a scag wb, also a simplicity.
I think at the time I purchased my mower Sheffield had a $20.00 aplication fee

Precision
08-14-2005, 09:05 AM
Finance. Why would you not accept the 1.9% finance charge to greatly improve your cash flow and emergency position.

Paying 8-18% is crazy but some of the rates are so low it is crazy not to use them.

1.9% on 10K is like $190 a year. I make more than that in interest in my moneymarket acct.

LwnmwrMan22
08-14-2005, 10:16 AM
Anything that's below 2% I finance.

I've got 2 mowers and 2 trucks financed right now, one more and one truck at 1.9% and the other mower and truck at 0%.

It was a determining factor when I bought the Kubota mower, 0% interest for 3 years.

Why would you NOT finance for 3 years with no interest??

I don't understand why someone would fork out 9-11k on a ZTR, up front, when you can make a payment for $150 for 3 years.

What would happen when you had a tranny and rearend blow out on the truck 2 weeks after paying out the 9k??

It's all about the cash flow.

Most likely you're depreciating the machine over 3 years or so anyways.

sawman65
08-14-2005, 02:22 PM
PAY CASH OR CHECK.when i give some one a lowest i can go price and they give me a credit card or ask for a credit app.i add 4% they charge us as well as ya'll.

topsites
08-14-2005, 03:01 PM
Finance. Why would you not accept the 1.9% finance charge to greatly improve your cash flow and emergency position.

Paying 8-18% is crazy but some of the rates are so low it is crazy not to use them.

1.9% on 10K is like $190 a year. I make more than that in interest in my moneymarket acct.

I am CASH or CHECK but I do agree, when it's NO interest / Same as cash OR you got a really low interest rate (like 3% over 3 years) then it may be feasible BUT you never know if you'll still be in business 1 or 2 years from now so I make sure I have the cash to pay for it even if I finance.

LwnmwrMan22
08-14-2005, 03:06 PM
I am CASH or CHECK but I do agree, when it's NO interest / Same as cash OR you got a really low interest rate (like 3% over 3 years) then it may be feasible BUT you never know if you'll still be in business 1 or 2 years from now so I make sure I have the cash to pay for it even if I finance.

And most likely the reason that you wouldn't be in business, would be a lack of cash flow, which a small payment over a period of time would be better than spending all the money you have saved up.

Say you have $10,000 in the bank. Wouldn't it still be better, at 1.9%, or so to finance a mower, keep that $10,000 in the bank for an emergency, and pay payments with the money you're making??

Even if you go out of business, you'd still have the $10,000 in the bank to pay off whatever amount you have left on the loan.

Killswitch
08-14-2005, 03:23 PM
Wow....

Maybe someday I'll have 8 grand to plunk down on a ZTR but not today.

lol

Richard Martin
08-14-2005, 05:38 PM
I borrow someone else's money to buy equipment and put my money where it will make a lot more return than that little bit of interest I get charged. Real Estate in my area is appreciating at about 40% to 50% a year currently.

South Florida Lawns
08-14-2005, 05:52 PM
I took a loan out on my two chevy's. Since I am so young I figured I should establish some credit. I also took out a loan for my house this year as well.

valleylawn79
08-14-2005, 07:01 PM
i would never use my own money for equipment. my cash flow needs to be in the bank for emergencies and so forth. my accountant figured it both ways and told me to take advantage of any and all promotions offered by dealers/manufactures etc. small handheld equipment is a different story. but anything over 1000$ i try to look for a way to use someone elses funds. although cash sometimes can talk a lower out the gate price i agree but most economists; cpa s etc recommend most businesses to use that financing as a tax break. interest is just another cost of doing business that has to be figured into a companies cost/hourly rate. just my opionon and what works for me

JKOOPERS
08-14-2005, 07:09 PM
i always just down a few thousand then make payments for the rest of the sum