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KrayzKajun
09-29-2008, 12:27 PM
As everyone knows i plan on getting a another/bigger truck for next season.

I was planning on putting a good bit down/and trading in my current 1500 silverado. Here is my question-

all my equipment is paid off except my 07 Exmark Lazer Z. I still owe around $4500 on this mower. Should i go ahead and pay off this mower? That way when i buy my new truck I have one less bill>
opinions welcome

Keep the blades Spinning

DeepGreenLawn
09-29-2008, 01:19 PM
I am personally trying to pay off all my debt and save cash for any future purchases... with the economy the way it is I believe this is the only smart approach.

In general I believe this is how I will do things from now on no matter how the economy goes. I have run my house hold like this. Watching all my neighbors forclose and all I look at my own home. By the end of the year the only debt we will have is the house and car. I am willing to sell the car to get only the house... I go inside and all my furniture was paid for with cash. No matter what happens... they aren't getting it... if I have to, I sell it and put the cash in my pocket. Knowing this makes me feel good... if things go in the $hi%er and I do lose the house for whatever reason all I will lose is the house... nothing else...

If business goes down to nothing... I still have all my equipment paid for... a job with the FD and time... I will store the truck/equipment for when times get better and live off the FD and anyother work I can pick up. When times get better I pull out the truck and sprayer and go back to work. No loosing everything or having to start all over... just pick up the needed fert and start applying...

This is how I run my business from now on... I am about $2K away from having all business debt paid off and then it is worry free...

Feels good...

My suggestion... pay off the mower, if you have to get a beater truck to pull it with and stay out of debt. Save up and pay cash for a new truck...

It is amazing how fast cash accumulates when you don't have it all going straight from the employer to all the people you owe... you will have a new truck in no time... and no payment...

Edgewater
09-29-2008, 01:29 PM
What has a lower rate? Put your money into the one that will cost you more to finance.

You have to use financing to grow, but you have to your is intelligently. You will never have the cash to buy trucks outright if you need one every 2-3 years.

KrayzKajun
09-29-2008, 02:42 PM
the interest rate on my mower is double wht the rate would be on the truck!

brandtb1
09-29-2008, 03:35 PM
Pay the mower off. If the truck is in good shape, I would keep driving it. If it breaks down too much, it might be time for a new one. I like having every thing paid for except my house. The cars and truck are not new, but they get me around town fine. I keep them clean and they look fine to customers. If you have the cash sitting around, you might get a steal on a good used truck when someone is in a pinch.

DeepGreenLawn
09-29-2008, 03:38 PM
I bought a used F250... 2000 I believe? It looks great, runs great, and all for $7k. Cash... no payments... no worries... I know there is the whole tax break thing... but I would rather not have to worry about payments... if everything goes to hell, it goes to the barn... no worries... or sell it for cash... that is how I look at it...

TXNSLighting
09-29-2008, 05:35 PM
Pay that mower off. Its the best thing to get away from the crappy intrest rate you have.

TXNSLighting
09-29-2008, 05:36 PM
I bought a used F250... 2000 I believe? It looks great, runs great, and all for $7k. Cash... no payments... no worries... I know there is the whole tax break thing... but I would rather not have to worry about payments... if everything goes to hell, it goes to the barn... no worries... or sell it for cash... that is how I look at it...

You dont know what year your truck is?!

DeepGreenLawn
09-29-2008, 05:51 PM
Does it really matter whether it is a 2000, 2001? I am 99.999999% sure it is a 2000. The thing is it is paid for... minor repairs here and there to make it like a new truck and we were good to go. Had a couple mechanics check it out real well and got the OK.

I have a work truck for cheap. No payments, no debt. More incoming money to be used elsewhere. Everyone is talking about how companies are taking out this debt that they may not be able to get to to pay their employees... that is the kind of thinking that I believe has gotten us to this place...

I can see borrowing money to buy equipment and stuff to start with... but I would think that you should be able to have enough money to support it at the beginning... otherwise work a little longer, save up the needed money and then start the business... is this such a hard way of thinking?

TXNSLighting
09-29-2008, 05:53 PM
Cuz you should care about your truck...

DeepGreenLawn
09-29-2008, 05:56 PM
LOL... I knew that was coming... I care about it, proper maintenance... all that... in fact... I know myself well enough that other than changing the oil and basic stuff like that... I need to stay as far away from that truck as possible mechanicly. I will have that thing torn up and apart with the turn of a wrench... mechanics has never been my strong point...

TXNSLighting
09-29-2008, 06:02 PM
Ha yeh im fun like that.

Lawnworks
10-01-2008, 06:28 PM
I hate debt. As far as depreciating assets go... I don't like to finance. I don't need a fancy truck to feel secure about my financial status... I just need to it to run and take the abuse I dish.

The way I look at it... if you are making payments... you do not own it. If I can't pay cash for a truck or a piece of equipment... I cannot afford it. It is amazing how much savier you will be when you force yourself to pay cash.

newtostone
10-01-2008, 11:08 PM
Cash is King. Never forget those words, any US auto maker can tell you this, as long as you have cash you can stay in business even if your not keeping a positive cash flow. I wouldn't pay that mower off unless you had another $4500 waiting around. You never know what may come up.

DeepGreenLawn
10-02-2008, 07:09 AM
I look at it like this... if you have loans for everything you own... you don't have cash... you have debt and that cash is already been claimed...

If you have no debt and little cash... all you have to do is sell the stuff and then you have cash... assets... that is what you want not debt.

Get rid of your debt and then you will truly have cash...

Lawnworks
10-02-2008, 06:40 PM
I look at it like this... if you have loans for everything you own... you don't have cash... you have debt and that cash is already been claimed...

If you have no debt and little cash... all you have to do is sell the stuff and then you have cash... assets... that is what you want not debt.

Get rid of your debt and then you will truly have cash...

I like the way you think. I prefer to have everything payed for and have enough cash to live on for a couple years.

It doesn't matter if my skid steer sits at the shop all month... there is no note.

Lawnworks
10-02-2008, 06:42 PM
Cash is King. Never forget those words, any US auto maker can tell you this, as long as you have cash you can stay in business even if your not keeping a positive cash flow. I wouldn't pay that mower off unless you had another $4500 waiting around. You never know what may come up.

Yeah I can see your point, but if $4500 is going to break someone, don't you think they need to work on there saving habits? I would think a smaller operation would have at least 30k sitting in the bank just in case. For multiple crews I would think 3 times that.

newtostone
10-02-2008, 07:10 PM
I agree. But keep in mind i have no idea what his bank account has, So assuming the worst.