Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #11  
Old 12-15-2013, 09:06 PM
puppypaws's Avatar
puppypaws puppypaws is offline
LawnSite Fanatic
 
Join Date: Jul 2004
Location: Marshville,NC 28103
Posts: 7,765
Quote:
Originally Posted by Vr6Mark View Post
Thanks guys for the insight from different angles of how I may be looking at this. I do agree it may be a better idea to keep more money in my pocket and just set up an auto pay on my debit card but I'm the type of person who likes to get things paid off as soon as possible and have his little debt as possible. My current machine is 48 inch Husqvarna walk behind that is 10 years old. It's in great shape has zero Rust and looks brand-new was very well maintained religiously, and has only about 750 hours on iit which means it will have a pretty high resale value in my opinion. I am interested in purchasing a husqvarna PT – Z to replace the smaller walk behind to increase my productivity. I work solo still but occasionally hire a helper when I have large projects for custumes. I need something more efficient to mow lawns with since my customer list is getting large. Thank you for all your help and insight guys!
Posted via Mobile Device
That's great if this statement is costing you money, but extremely poor business sense when using a lenders money free of charge. My dealer and I talked about this, he told me some of his customers could not stand the thought of owing money, they like to pay for what they bought. I told him that made absolutely no sense whatsoever if using a lenders money free of charge, and besides that, you are hurting your credit rating. There is no better way to build good credit than to make payments free of interest set up on an automatic debit. This guarantees you will never be late with a payment, which in reality will lower your credit rating if ever late.

Buying a machine with 0% and making timely payments is one of the fastest ways a young person can build a good credit rating, and believe me, a strong credit rating will carry a great deal of weight when transacting any business throughout life.
__________________
Farm Mower
Reply With Quote
  #12  
Old 12-15-2013, 11:40 PM
Vr6Mark Vr6Mark is offline
LawnSite Member
 
Join Date: Dec 2013
Location: Shelton,CT
Posts: 8
Good point, mabye i will only put 1000-1500 Down To have more cash on hand for unexpected repairs.
Reply With Quote
  #13  
Old 12-16-2013, 03:51 PM
sildoc's Avatar
sildoc sildoc is offline
LawnSite Silver Member
 
Join Date: Jun 2003
Location: Eagle Point, Oregon
Posts: 2,716
I disagree with everything every one has said here on taking and using money for free. When you take a loan on piece of equipment you are taking risk of something happening and not being able to pay it off. 2. You are a slave to the lender. 3. If the equipment breaks down you will more likely hate it and let it sit/procrastinate on payments and hurt your credit rating.
If you can afford to pay it off I would do so. When I finally grew up (financially) and paid cash for what we needed I actually saw a better bottom line than when we took out loans on our equipment.
Maybe instead of the PZT go with the MZT(its a great mower for the price).
I strive for a 0 credit rating, because I know if I achieve this I have been paying cash for everything I need.
Nothing is FREE. Think about it.
__________________
What ever I do I must do it right!
Reply With Quote
  #14  
Old 12-16-2013, 06:57 PM
puppypaws's Avatar
puppypaws puppypaws is offline
LawnSite Fanatic
 
Join Date: Jul 2004
Location: Marshville,NC 28103
Posts: 7,765
Quote:
Originally Posted by sildoc View Post
I disagree with everything every one has said here on taking and using money for free. When you take a loan on piece of equipment you are taking risk of something happening and not being able to pay it off. 2. You are a slave to the lender. 3. If the equipment breaks down you will more likely hate it and let it sit/procrastinate on payments and hurt your credit rating.
If you can afford to pay it off I would do so. When I finally grew up (financially) and paid cash for what we needed I actually saw a better bottom line than when we took out loans on our equipment.
Maybe instead of the PZT go with the MZT(its a great mower for the price).
I strive for a 0 credit rating, because I know if I achieve this I have been paying cash for everything I need.
Nothing is FREE. Think about it.
"I strive for a 0 credit rating," that statement alone proves you are either very young, or completely ignorant as to how the business world actually works. Which is it, are you young or clueless?
__________________
Farm Mower
Reply With Quote
  #15  
Old 12-16-2013, 09:57 PM
DA Quality Lawn & YS's Avatar
DA Quality Lawn & YS DA Quality Lawn & YS is offline
LawnSite Fanatic
 
Join Date: Sep 2007
Location: Rochester, MN
Posts: 7,853
I would only agree with using the 0% lender financing if I had the cash collateral to back it up myself...in an emergency account or something like that. Then you are assured that you can always pay the thing off when you want.

The big thing is, you want to be in full control at all times, and not be a slave to the lender.
Its like paying off your credit card in full each month.....you are completely using the lender and they are getting nothing out of you, and may in fact be losing money off you if you have a rewards card.
__________________
7x14 Stealth SE Enclosed with 48" side ramp
08 Toro Z400 48" deck, 21HP Kaw with EZ Vac twin bag
09 Exmark Turf Tracer HP 36"
21" Toro SR4 Super Recycler
Stihl KM90 Kombi w/ straight shaft trimmer & tiller heads
Husqvarna 125B Blower
PG Magnum
Turfco XT5 Aerator
Turfco LS-22 Overseeder
EcoLawn 200 Applicator

I can do all things through Him who gives me strength.
Philippians 4:13
Reply With Quote
  #16  
Old 12-17-2013, 12:34 AM
sildoc's Avatar
sildoc sildoc is offline
LawnSite Silver Member
 
Join Date: Jun 2003
Location: Eagle Point, Oregon
Posts: 2,716
Quote:
Originally Posted by puppypaws View Post
"I strive for a 0 credit rating," that statement alone proves you are either very young, or completely ignorant as to how the business world actually works. Which is it, are you young or clueless?
Obviously you don't get the point. If you have a 0 credit rating it means you can pay CASH for everything. Even in the Business world you can do this.
The clueless people are the ones that rack up their credit scores by borrowing money that they end up paying thousands and thousands of dollars a year for nothing!
I was young and clueless at one time and then I came to my senses!!!
__________________
What ever I do I must do it right!
Reply With Quote
  #17  
Old 12-17-2013, 12:43 AM
sildoc's Avatar
sildoc sildoc is offline
LawnSite Silver Member
 
Join Date: Jun 2003
Location: Eagle Point, Oregon
Posts: 2,716
Sorry for the Hijack of the thread.
To answer your question depends on where you are sitting for the year.
Will the purchase make a big difference in what you pay for taxes this year? or would it be better to wait till after the first and apply it to next years taxes? Something you should ask your CPA and rather quickly.
0% interest should only be the last deciding factor.

On a side note I have found buying in Late January has you having more leverage on price before they have to pay taxes on their inventory. But that depends on how firm your dealer is and how much you purchase from them yearly.
__________________
What ever I do I must do it right!
Reply With Quote
  #18  
Old 12-17-2013, 06:07 AM
kwwolfe kwwolfe is offline
LawnSite Senior Member
 
Join Date: Jul 2007
Location: Central PA
Posts: 251
If you have zero credit rating then you would not be able to buy a house or rent at many places. I get that people like to be debt free, but having credits cards does not doom you to a life of servitude paying "the man". They have there place, and the most successful people in the world borrow.

As for sildoc's comments above, I can't disagree more. Given the assumption that the 0% finance deal is as good as the non 0%, not taking this would be foolish. If you pay cash and something happens to the machine then you are stuck with a pieces of junk worth 0 anyway. If you pay cash then you are a slave to empty pockets. What happens if you truck craps out. Oops, no money in your pocket.
Reply With Quote
  #19  
Old 12-17-2013, 08:59 AM
puppypaws's Avatar
puppypaws puppypaws is offline
LawnSite Fanatic
 
Join Date: Jul 2004
Location: Marshville,NC 28103
Posts: 7,765
Quote:
Originally Posted by kwwolfe View Post
If you have zero credit rating then you would not be able to buy a house or rent at many places. I get that people like to be debt free, but having credits cards does not doom you to a life of servitude paying "the man". They have there place, and the most successful people in the world borrow.

As for sildoc's comments above, I can't disagree more. Given the assumption that the 0% finance deal is as good as the non 0%, not taking this would be foolish. If you pay cash and something happens to the machine then you are stuck with a pieces of junk worth 0 anyway. If you pay cash then you are a slave to empty pockets. What happens if you truck craps out. Oops, no money in your pocket.
Here is a gentleman that understands...Without good credit, of which you must build, there may be a time you need to make a purchase of something such as a house. The house may be in the $250,000 range, without good credit of which you must built; you can forget making a purchase of this size, no one will even talk with you, much less back you with their money.

You always use a lenders money if they allow you to use it interest free. If you have money on hand to pay cash, it makes more sense to leave your money making money, even if it's no more than 1%, while using the lenders money interest free.
__________________
Farm Mower
Reply With Quote
  #20  
Old 12-17-2013, 09:23 AM
ztman ztman is online now
LawnSite Senior Member
 
Join Date: May 2012
Location: mountain pa
Posts: 769
Back to the mower purchase. A lot of manuf. give 0% OR a discount. You have to do the math to see if it is better to take the 0% or get the discount. If there is no discount, and 0% financing, it doesn't make sense to me to make a large down payment . Set the down payment money aside and use that to make the monthly payments and generate a little interest on the money in your savings account. People mention 1%. In my neck of the woods you are lucky to get half that on large deposits. Best thing to do is shop around for the best deal.
__________________
I don't mind spending money, I mind wasting money!
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.com™ - Moose River Media
All times are GMT -4. The time now is 06:09 PM.

Page generated in 0.08089 seconds with 9 queries