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View Full Version : how much to take a loan on a mower?


lawn crafters
10-23-2008, 08:12 PM
i am going to get a 48 inch navigator but my question is how much a month am i looking at to pay for it?

topsites
10-23-2008, 08:13 PM
The cost of the mower over the number of payments, pretty much.
And yes, to the best of my knowledge we are allowed to use calculators.

IN2MOWN
10-23-2008, 08:19 PM
i am going to get a 48 inch navigator but my question is how much a month am i looking at to pay for it?



Probably best to call your lender and ask them...

kaferhaus
10-23-2008, 08:31 PM
Take the out the door price of the machine. divide the total cost by the number of months financed, then divide the annual percentage rate by 12. multiply that number as 1.XX% times the monthly amount

example

Amount financed = 7,500.00 at 11% (if you're lucky) for 48 months

Loan Summary
$193.84 monthly payment
Monthly Principal & Interest $9,304.39
Total of 48 Payments

$1,804.39
Total Interest Paid Sep, 2012
Pay-off Date

MOturkey
10-23-2008, 08:37 PM
When I purchased my new Gravely last year, I took advantage of the "6 months same as cash, 1.9% interest" deal, which seems to be one of the more common promotions.

I was aware that the payment would be 2% of the balance, but didn't read the fine print in that the payment is based on the REMAINING BALANCE rather than the INITIAL BALANCE. In other words, your payment is based on what you owe at the end of the "6 month same as cash" period, rather than on the initial amount you borrowed, as in most loans. This made little difference, in my situation, as I made a large down-payment at the time of the purchase, but this could be a huge advantage to someone wanting to buy a new mower with a limited monthly budget.

If you buy your mower at the first of the mowing season, and pay extra during the peak of the season, you can end up with miniscule payment going into the slack season.

Let's say you buy a mower for $10,000 on April 1. You don't have to make a payment for 6 months, or around the 1st of October, and the money borrowed isn't costing you anything. If you let the amount roll over into payments your payment will be $200 a month, or 2% of the remaining balance. However, if you are able to say, pay $1,000 each month with the extra income during the mowing season, you will only make a payment based on a a remaining balance of $4,000, making the payment as you go into the off season only $80 a month.

The 1.9% finance charge is neglible, so the next spring, you will have accumulated little in additional debt, even if you make only the minimum payment, and can concentrate on eliminating most or all of the remaining debt during the peak season.

This, to me, is absolutely the best plan under which to purchase new equipment for the average person who can't pay cash. If you can pay it off in 6 months, terrific. If not, the debt can be reduced enough to make the payment less painful through the winter. Good luck. Neill

lawnprosteveo
10-23-2008, 09:16 PM
Loan Summary
$193.84 monthly payment
Monthly Principal & Interest $9,304.39
Total of 48 Payments

$1,804.39
Total Interest Paid Sep, 2012
Pay-off Date
When you put it that way....it makes you wanna pay CASH!!! I hate payments and I hate debt. To me, debt is modern day slavery (self-inflicted).payup

VisionsLandscapes
10-23-2008, 09:42 PM
just pay cash for it if you can afford to, saves you tons i nthe end.

DuallyVette
10-24-2008, 12:15 AM
Google "loan calculator"...click on bankrate.....com.

get several credit cards that offer a year or two at 0% finance. Don't use the card for anything else. When the free time is over...transfer the balance to the next card. ALWAYS pay on time, or you'll get the 30% default rate.:)

P.Services
10-24-2008, 12:30 AM
Google "loan calculator"...click on bankrate.....com.

get several credit cards that offer a year or two at 0% finance. Don't use the card for anything else. When the free time is over...transfer the balance to the next card. ALWAYS pay on time, or you'll get the 30% default rate.:)

my new favroite website. (second to lawnsite of course) thanks!!

KS_Grasscutter
10-24-2008, 12:36 AM
When I got my new Grasshopper this fall, I got a 5 year loan for $9,000. Payments on that are roughly $200 a month. For the Navigator, I would figure $250 a month on a 5 year loan. Also, my interest rate was like 6% or so I think.

Scagguy
10-24-2008, 01:23 AM
i am going to get a 48 inch navigator but my question is how much a month am i looking at to pay for it?

Sorry....This has got to be the stupidest question I've seen here in a long time. Reason is....none of us have a crystal ball. How much are you going to pay for it? Any down payment? How long do you want to finance it for? What's your credit score? What do you think your interest rate might be? Fill in those blanks and you might get some intelligent answers.

Richard Martin
10-24-2008, 04:30 AM
When I got my new Grasshopper this fall, I got a 5 year loan for $9,000. Payments on that are roughly $200 a month. For the Navigator, I would figure $250 a month on a 5 year loan. Also, my interest rate was like 6% or so I think.

Nah, you might want to check those loan papers again. $200 a month on a 60 month $9000 loan works out to 12 percent.

Kickin Your Grass
10-24-2008, 09:36 AM
I used to finance alot of stuff untill someone introduced me to Dave Ramsey's Financial Peace University. Now after taking the class, If I don't have cash, I don't get it. Debt just plain sucks and I don't like giving my hard earned money away for free.




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Jason Rose
10-24-2008, 09:57 AM
Oh so difficult to see what your financaning options are from Exmark, AND what your payment would be depending on the option you were able to qualify for...

http://www.exmark.com/ez-current.asp

Usually the finance programs offered by the mfg. will beat your local bank/credit union, but you loose negotation power when you are taking the financing versus paying cash

P.S. No offence, but don't let the lender talk you into 60 months, or even 48. Nothing like still making payments on a machine that's probably wore out by that time.

ALC-GregH
10-24-2008, 10:42 AM
Oh so difficult to see what your financaning options are from Exmark, AND what your payment would be depending on the option you were able to qualify for...

http://www.exmark.com/ez-current.asp

Usually the finance programs offered by the mfg. will beat your local bank/credit union, but you loose negotation power when you are taking the financing versus paying cash

P.S. No offence, but don't let the lender talk you into 60 months, or even 48. Nothing like still making payments on a machine that's probably wore out by that time.

I somewhat agree but if your just starting out, it can make the payment small enough to afford. As you build your business over a year or two, you can easily make double or even triple payments to pay it off early. In the end your still paying more then you would if you paid cash but it can help in getting a business started. Unless of course daddy has the extra cash just laying around and buys you the new mower. :) In my case, daddy DID buy the mower...................... for himself. :D

DA Quality Lawn & YS
10-24-2008, 10:48 AM
Don't take on debt for a depreciating asset like a mower, double whammy.
Same goes for automobiles....

Save up, pay cash, and use a craftsman in the meantime....

topsites
10-24-2008, 10:54 AM
Google "loan calculator"...click on bankrate.....com.

get several credit cards that offer a year or two at 0% finance. Don't use the card for anything else. When the free time is over...transfer the balance to the next card. ALWAYS pay on time, or you'll get the 30% default rate.:)

There exists a 3% transfer fee, there are ways to get around it, but it's not easy.
And best be vewy vewy careful.

I somewhat agree but if your just starting out, it can make the payment small enough to afford. As you build your business over a year or two, you can easily make double or even triple payments to pay it off early.

No you can't, the first 1-2 years are very slow anyhow, that's some rough going and with a loan on top?
Y'all do what you want, so long you don't mind paying for a mower out your own pocket, but then why not just pay cash?

ALC-GregH
10-24-2008, 12:17 PM
I opened a professional lawn care company, I'm not about to start with a Crapsman.

DuallyVette
10-24-2008, 01:57 PM
There exists a 3% transfer fee, there are ways to get around it, but it's not easy.
And best be vewy vewy careful.
?

Some have a transfer fee...some don't. Some require you to charge at least another $25 on the card each month (bad idea)to retain the deal. Always read the fine print. Call the card company if you have any questions.

Jason Rose
10-24-2008, 09:07 PM
I somewhat agree but if your just starting out, it can make the payment small enough to afford. As you build your business over a year or two, you can easily make double or even triple payments to pay it off early. In the end your still paying more then you would if you paid cash but it can help in getting a business started.

I thought if that later... Actualy I've done the same thing myself. Of course the REASON I needed smaller payments was because I was making payments on about 4 items, plus making at least 2 credit card payments each month. This dosn't count the house payment and another truck payment, PLUS all the insurance payments, etc.

Yes, it's VERY easy to get ones self into a hole! I was even raised in a family that tought me to not be in debt... After 5 years of making payments and still buying more stuff I said ENOUGH. I'm in the process of getting everything (other than the house) PAID OFF. All I lack now is the newest Walker I just bought in July, and I only owe about $3,100 on it (want to pay it off by December). Everything else is MINE free and clear. Man, it really IS a great feeling!

KS_Grasscutter
10-24-2008, 09:38 PM
I somewhat agree but if your just starting out, it can make the payment small enough to afford. As you build your business over a year or two, you can easily make double or even triple payments to pay it off early. In the end your still paying more then you would if you paid cash but it can help in getting a business started.

That's why I got my 60 month loan on my Grasshopper. At this point, $200 a month was all I could afford on top of my other payments. Next year, I can probably pay closer to $600/mo and pay it off much more quickly. It was either get a new mower now that is exactly what I want and need, that will last probably 10 years, or, deal with more used junk.

punt66
10-24-2008, 10:23 PM
Ferris very often has a 2.9% for 36month loan. When i bought mine it was 12 months no payments no interest. My first year was light because of health issues and yet the mower was paid for before the 12 months.

DuallyVette
10-24-2008, 10:37 PM
Paying cash may be nice, but all debt isn't bad. Buying the RIGHT equipment can save lots of time and money.