Originally Posted by TopQualityLawnCare
If decided to buy a decent mower get a credit card and pay my gas I use with it and build my credit up then at the end of the year keep my old mower as a back up finance a used one put a a grand or so back just invade I can't afford a payment and get a new truck with the other cash since I save since I need one.. Good idea?
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Lets see if I can translate your large run on sentence. You want to buy a used mower with cash. Next you want to get a credit card to purchase your gas and build credit. Then, at the end of next season you want to finance a used mower, put $1k in the bank and get a new truck. So far have I got it?
Credit is a tool. Much like a skilled butcher using his tools to break down a side of beef. When he is done it is no good meat is left on the carcass and everything is uniform. Give his tools to someone who has never seen a primal cut of meat and they will show you another meaning of the word butcher. If used correctly beautiful things can happen. In the wrong hands it is a disaster.
If you are able to build enough credit in order to qualify for an equipment loan know the rate on used equipment will not be the same as for new. You will pay more interest to the bank than you would on a loan for new equipment. Take that knowledge into consideration when purchasing.
Lets say you are looking at a mower that is $10500, at 0% for 48 that is $218.75 if you were to buy a used mower your rate is going to be around 5% and only for 3 years. So if you were able to buy a quality used mower of the same size as the aforementioned new mower, for around 6500 @5% for 36 months your payment would be $194.81 which would have you paying a total of $7013.16
Only you know your bills. I don't know if you can afford a truck. If your truck runs, I would not recommend getting a new one. I would only recommend getting rid of a paid for vehicle if the cost of needed repairs were greater than the value of the vehicle and even then you have to weigh your expenses. It might still be better to keep your vehicle. Always do the math both ways. It sometimes will surprise you and not be what you assumed would be cheaper.