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View Full Version : What about leasing mowers?


JABBERS
02-18-2008, 09:31 AM
I ran into a guy 14yrs ago that leased a lesco mower. Can you lease mowers in general? What about other equipment? I know it's a 100% wright off. Are there any leasing companies for the green industry?

shade tree landscaping
02-18-2008, 09:57 AM
Don;t know anything about there being a leasing company, but after you pay lease payments for 24 or 36months, how much are you really gonna save over financing a piece of equipment for the same ammount of time? Then at the end YOU OWN IT, its not money thrown out the window. This is comign from someone who would never lease a car, just my two cents on leasaing equipment!

JABBERS
02-18-2008, 10:06 AM
I'm not really sure how much money could be saved? I'm just looking for some different options. My wife does lease a Town and Country van and it works great for us.

Turf Dawg
02-18-2008, 10:14 AM
Some larger companies like to lease for tax reasons. I do not know about other states but here in Texas you have to list all equip. that is used for your company { trucks, trailers, handhelds and even tools} and add up the total cost. You have to pay taxes on this price at the same tax rate as your home. If you lease your equip the lease company has to pay the taxes. Can you say write offs.

Raven386
02-18-2008, 10:18 AM
I never heard of any lease programs for mowers... maybe big equip. like skid steers and tractors. Keep an eye on the offers for financing, because spring is coming they will probably have some good programs.. i know Exmark has some good programs like 120 a month for 24 months and others like that.

Jason Rose
02-18-2008, 10:40 AM
Most lease programs I've seen for mowers are geared towards schools and golf courses, and on equipment that costs $30,000++ for one mower (like a WAM).

I think if you search around you *might* find a company that will offer lease programs for smaller purchace amounts, but I'm sure it would be very much in their favor.

Honestly, I like the idea of leasing. At least for my main big mower. I rarely keep one over 2 to 3 years before I trade, and having a lease payment that would be 1/2 that of what I currently pay a month would be nice. I honestly only need to own 2 to 3 years of the 10,000 mower, not the whole thing. And when it's time to trade just simply take it in and drive out a new one, with about the same lease payment.

If you prefer to run mowers longer, then yes, leasing is a bad idea...

Mimowerman
02-18-2008, 12:23 PM
the local exmark dealer here is one of the largest power equipment dealers in the usa, they offer leasing on the exmarks, I forget how much he quoted me, it seemed pretty cool , they took care of oil changes, blades etc all included in the price. You'll never be without a mower, it if breaks thay give you a similar unit all with less than 1200 hrs on it .

tb8100
02-18-2008, 12:46 PM
yeah we had a company offer us a lease program. We may take them up on it. We could implement it on our tractors, mowers, etc.

Espacesverts
02-18-2008, 01:03 PM
Kubota offer some leasing programs, Toro in certain arear and deere too...

MJB
02-18-2008, 01:44 PM
I ran into a guy 14yrs ago that leased a lesco mower. Can you lease mowers in general? What about other equipment? I know it's a 100% wright off. Are there any leasing companies for the green industry?


I've never done it any other way. I lease my mowers and make 7 payments per yr per my growing season. No winter payments. At the end of the lease I pay $1 and it's mine. The reason I liked this was because I don't have work
Nov - March and don't like the payments during these down months. Plus it's a total write off. Now you may be able to finance through your bank this type of loan, don't know.

Advance Leasing is the one I use.

I would never lease a vehicle for any reason, but works great for mowers.

topsites
02-18-2008, 02:42 PM
The only way I've heard of this being done is there exist two companies under the same corporation and one company leases to the other... I'm not sure exactly how it works but your accountant can likely tell you more.

MJB
02-18-2008, 04:59 PM
I've never done it any other way. I lease my mowers and make 7 payments per yr per my growing season. No winter payments. At the end of the lease I pay $1 and it's mine. The reason I liked this was because I don't have work
Nov - March and don't like the payments during these down months. Plus it's a total write off. Now you may be able to finance through your bank this type of loan, don't know.

Advance Leasing is the one I use.

I would never lease a vehicle for any reason, but works great for mowers.

Correction .... "Advance Acceptance" Look them up on the net.

NJemerald
04-09-2008, 10:24 AM
Question for those of you who have leased mowers...
If you need to have the mower repaired for some reason while under lease... Do you need to take to to the place you leased/bought it from or will any local dealer/repair shop be able to work on it?

Thanks,
NJemerald

MJB
04-09-2008, 10:46 AM
Question for those of you who have leased mowers...
If you need to have the mower repaired for some reason while under lease... Do you need to take to to the place you leased/bought it from or will any local dealer/repair shop be able to work on it?

Thanks,
NJemerald

I would ask the dealer you lease it from. But in my case I have always took it back to the dealer I purchased it from, or any other dealer that carries that line of equipment. I've always bought from dealers that have a service dept too. In some cases like my Exmark dealer stopped carrying Exmark and I had to find the new dealer that carried them. Really it's no different than when you purchase it outright.

jaybird24
04-09-2008, 11:21 AM
Like MJB we have leased mowers with the $1 buyout after 24 or 36 months. I can't remember the company, but our dealer set us up so ask ask your dealer. It worked out well, the payments were actually lower than financing plus the $1 buyout. The straight write off was nice too.

DLCS
04-09-2008, 12:31 PM
Many advantages to leasing, talk to your accountant. Lease payments are 100% write off. Leasing agreements do not show up on your credit report. Lease payments can be lower than financing. Most leases you don't have to give it back in the end of the agreement, basically you lease to own but are able to write off the entire lease payment. You can elect to skip like 3 payments a year during your slow times but you do end up making those payments in the end. You just defer them. You can lease anything that you want. Advance Acceptance is one company that i have used before but don't recomend them. They more than once "lost" my payment. Try going through the equipment manufacturer first, like john Deere credit or you can go through a 3rd party like Sheffield. I believe Gravely/ Ariens has their own too.

bullethead
04-09-2008, 04:10 PM
If leasing works better for you from a cashflow perspective, then pursue it.

If you are worried about "write-offs" I am willing to bet this is a silly consideration for most people on here. Look up Section 179 deductions, part of your depreciation schedule Form 4562, - basically you can write-off up to $125,000 of your annual equipment purchases if you have the income to offset it. You don't have to schedule it and depreciate it.