Originally Posted by larryinalabama
At least your talking somewhat like a businessman, may I ask how long have you been in business???
OK so a person buys a new 50k truck that that couldnt afford and cant make payments on the 50K. The truck almost immediately leaving the lot lost 10k in value, so in the best of cirmistances the "borrower" has to take a "personal loan" if he can get for the 10k difference. Then lets say everything goes great and after 5 to 7 years and the ztr runs into the side of it a few times, and the interior is wornout from being filthy after long days of lawncarwork, the truck is worth around 8k, not the worlds best investment even if everything goes good.
My point about is now and has alaways been that in increases the "Risk" of a failed business, not that it automacially means failure, althought in this industry its very common. Not to mention that borrowing money on assets that go down in value is a recipe for being poor.
We should keep a open disscussion, Im curious why every thinks they need to borrow money for a lawncare businees?
You buy the truck and depreciate over the same time .The truck technicality is now worthless to your business. And how much money did that truck make you in that time. And up here salt will eat your truck ,hard to keep a truck working for a long time. I just traded in a 2002 with 67k on it ,salt ate it.