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Old 08-31-2006, 11:00 PM
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jarroo's lawncare jarroo's lawncare is offline
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financing equipment. is it wrong?

i was just wondering if financing equipment is the wrong thing to do. a lot of dealers have some really good payment plans out there and if you can't pay a mower off in one season there's something wrong. i think it would be fine as long as you didn't get in over your head.
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Old 08-31-2006, 11:09 PM
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tacoma200 tacoma200 is offline
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Pay off in one season

Quote:
Originally Posted by jarroo's lawncare
i was just wondering if financing equipment is the wrong thing to do. a lot of dealers have some really good payment plans out there and if you can't pay a mower off in one season there's something wrong. i think it would be fine as long as you didn't get in over your head.
There are not many busisnesses that don't borrow money to get started. I have never heard anyone much questioning this. There is certainly nothing wrong with financing equipment. There are millions of Americans financing new cars, plasma TV's, motor cycles, furniture, you name it and none of it makes them any money. I consider equipment and tools an investment and with a good head on your shoulders it will make you money, not cost you money. That doesn't mean to go out and spend unwisely. It doesn't take too many lawns to make a mower payment but you have to be disciplined. I've been borrowing money since I was about 14 and have never been late on a payment as far as I know. I'm 43 now.
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Old 08-31-2006, 11:09 PM
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dcondon dcondon is offline
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Go ahead and do it. I can bet over 75% of the members on here do it all the time. In a sad way thats about all you can do these days unless you are loaded. Just find the smallest % rate and do it.
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Old 08-31-2006, 11:20 PM
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Frontier-Lawn Frontier-Lawn is offline
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i used a at&t card to get my trailer at lowes and a hd card to get lawn equipment to startup. less then $5000 to get me up and running. 2 seasons so far and i only have 92.7 hours on my L118 mower.
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Old 08-31-2006, 11:28 PM
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bigjeeping bigjeeping is offline
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If you know you'll make enough money in the season to pay it off see what type of short term 0% offers they have.

Exmark had 6-months 0% APR and I had enough money to pay it off after the first month, but I waited until the 6 months ran up. I like interest-free loans
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Old 08-31-2006, 11:28 PM
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i was just wondering what your guys take on this was. i have been financing equipment to get started. last year i financed my viking hydro, i always make sure to get the one year no payments no interest when i do. i payed it off in just a couple of months. this year i bought my lazer z put in a few commercial bids got them and picked up around 30 residential accounts. i have the money to pay it off right now. i think i owe about 7500 dollars on it. the best thing is the season isnt over so there is some more money to be made. also my commercial accounts will pay me through march of next year. i am 21 and put in over 40 hours a week at a regular job and manage to get in 30 plus hours a week mowing.
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36'' husqvarna hydro
shindaiwa t-231
shindaiwa 22t
2 maruyama bl 8100 bp blowers
2 toro 22" recyclers
stihl ms 290 farmboss 20in
60" lazer z as
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Old 09-02-2006, 07:34 AM
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Richard Martin Richard Martin is online now
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Quote:
Originally Posted by jarroo's lawncare
i was just wondering what your guys take on this was. i have been financing equipment to get started. last year i financed my viking hydro, i always make sure to get the one year no payments no interest when i do. i payed it off in just a couple of months. this year i bought my lazer z put in a few commercial bids got them and picked up around 30 residential accounts. i have the money to pay it off right now. i think i owe about 7500 dollars on it. the best thing is the season isnt over so there is some more money to be made. also my commercial accounts will pay me through march of next year. i am 21 and put in over 40 hours a week at a regular job and manage to get in 30 plus hours a week mowing.
I want you to do this... Continue making payments, get yourself a financial advisor and have him set you up a retirement/investment account where you can withdraw money (you will have to pay taxes if you do) from the account if you need it. This way you get a double dip on your money. You get to spread out your tax deductable mower payments over several years possibly lowering your tax bracket in future years and you get to deduct the money you are putting away for retirement now.

The only thing you will accomplish by paying off the mower in one big lump sum is a one time deduction. The little bit of interest you are paying on the loan is nothing compared to the payoff your investment will make later.
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Old 08-31-2006, 11:17 PM
fulano fulano is offline
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Compare credit from a lawn mower manufacturer let's say 5% for the next three years and the mower is $6000. That is a ton of money.
You may be able to get a loan from a bank at a little higher interest but save big on the purchase of a used mower like 1/2.
You would have to compare the #'s and look at your situation, but why buy new if you can find a good used machine which will do the same thing for less.
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Old 08-31-2006, 11:17 PM
olderthandirt olderthandirt is offline
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Finacing equipment is only Ok if you have the work for it and you can still make a profit after you make the payments. Otherwise your working for you equipment instead of having your equipment work for you. Are you finacing to grow or to continue as you are? theres a lot of questions that you need to ask yourself before finacing a mower cause you can make the payment.
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Old 08-31-2006, 11:19 PM
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It's only okay if you need that equipment for your bussiness. You need to have a lot of work in order for it to pay for itself.
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