Would you buy a repo mower?

[YLC1]

I would like to get your thoughts about buying low hour repo mowers.I have an opportunity to partner with a large finance company to sell their repo's.It would be set up like a traditional dealership.The idea is to have a line of new handheld equipment and backpacks.There would be a fulltime mechanic as well.Don't know yet about offering an in house warranty.Your ideas are welcome. Thanks,Richard:confused:

[GreenStar]

i love rackets like this. my brother owns a car lot just like this, 25% intrest. you make 3k on a $500 car. all you need is 2 check stubs and a gas bill for proof of residence. i think it would a great thing depending on the market area. would you be reselling all commercial equipment or just mowers. i really dont think selling mowers only will cut it. but i live in a market that consist of 2 new homes being built for every one being resold. so contractor demand would be high on commercial equipment

[YLC1]

Actually this would not be a "racket" type business.The idea is to offer the repo's with or without financing.The plans are to carry a full line of supplies(trimmer line,filters,etc.).This would be like a regular dealership with the exception being the equipment would be from all manufacturers.The majority of the equipment would be commercial type.Richard

[GreenStar]

sorry i use the term racket when any material at hand is a repo. when you say commercial equipment is this only mowers and such, or concrete saws, bobcats etc. really it depends on what your demographics are. also what kind of wholesale price are you getting from the lender. if it's only $1000 or $1500 off a new sale i would go new for the peace of mind. you could always auction material off if it sits to long

[YLC1]

The equipment that would be available would be lawn care related(mowers,bed edgers,spray rigs,trimmers,etc.).The prices would reflect the amount owed.I know the prices would have to be reasonable in order to be attractive to a potential buyer.I'm just looking for the thoughts from the members here.Thanks,Richard

[Currier]

I would think maybe you talk to Chuck....see what kind of deal you could work...see what happens.
I know that I bought a used mower that was advertised here. I was only 70 miles from the seller so it wasn't bad. He said his biggest hassle was the shipping $$ involved. He had tons of calls but the shipping basically was doubling the cost of the equipment. If you have a way of dealing with the shipping fee it probably could bring some good results.
As far as buying a local repo. I would have no problem if the price was right and I could check it out. You would think with all the new start ups you might end up with a revolving door of customers and equipment.

[lawnman_scott]

Wont you have all different makes of mowers that way? If so, i doubt that you would be stocking parts for them, other that the stuff like plugs, blades tires ect that usually fit anything. I am sure you could get them, but when? When i need something i want it now. In 7 years, i only had to wait 2 times for a part from the dealer i deal with.

[keifer]

Yes I think it would be a good idea there is a place like that where i bought my last boat. I got a good boat at a good price. I would shop there.

[customcut]

Remember the amount owed reflects all the finance charges this company has put on the loan originaly.I would be real careful if i were you. I would try to work a deal with them to get them to accept thier loss on the original loan and to finance the future buyers.Sell it to them that they can profitt on your sales and that you shouldnt have to bear the burden of past transactions.
:cool:

[turfquip]

I think it's a workable idea if you have a marketing means of reaching people all across the country. You might want to work out a deal with Chuck for a bulk rate ad package at the Used Equipment Marketplace :)

Would these machines would still be 'on site' and need to be repo'ed? You don't want any part of that...

What I've found is that lease companies usually don't handle enough repos to be a reliable supplier. Too, many lease co's have web sites where they offer it for sale themselves...problem is, there just isn't enough stuff available.

Also, remember these companies want to maximize their recovery and minimize their losses on each item. Sometimes they try to sell machines for way over market value.

[southside]

My biggest concern would be that if the previous owners couldn't
afford to make the repayments on these mowers,then how could
they afford to maintain them properly? On this basis I would be wary of offering an in house warranty.

[Rodney Johns]

I have companies contact me occasionally that are in a buiness like you are talking about. Occasionally they have something of interest we can reasale but the problem usually is the guys are buried in the units above what they are worth.