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  #51  
Old 12-20-2013, 08:12 PM
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sildoc sildoc is offline
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Quote:
Originally Posted by puppypaws View Post
I am somewhat confused by the statement, "However you are taking big risk for very little gain," maybe you can explain?
Things happen. Say you buy a 8000 ztr put it on 0% financing through abc company. Spring rolls around you have 10 grand in the bank figuring your going to have the money to pay off the ztr if need be. All of a sudden you ruin a axle of a trailer costs you 1500 to replace and then the transmission goes out of your truck and costs you 4000 to fix. All of a sudden your tax guy comes back to you and said there were some flaws and you owe uncle Sam another grand.
Little things add up and all of a sudden all hell broke loose and you missed a payment and your interest rate is now 21%.
All that on trying to save 100 bucks of interest.
Talk to your more affluent customers and see how they pay. Sure they will all say they have a credit card but most say they pay cash, check or use their debt card for all transactions.

To save a hundred or so bucks a year there are more things you can do for your business to come out ahead.
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  #52  
Old 12-20-2013, 09:00 PM
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GMLC GMLC is offline
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Quote:
Originally Posted by sildoc View Post
Things happen. Say you buy a 8000 ztr put it on 0% financing through abc company. Spring rolls around you have 10 grand in the bank figuring your going to have the money to pay off the ztr if need be. All of a sudden you ruin a axle of a trailer costs you 1500 to replace and then the transmission goes out of your truck and costs you 4000 to fix. All of a sudden your tax guy comes back to you and said there were some flaws and you owe uncle Sam another grand.
Little things add up and all of a sudden all hell broke loose and you missed a payment and your interest rate is now 21%.
All that on trying to save 100 bucks of interest.
Talk to your more affluent customers and see how they pay. Sure they will all say they have a credit card but most say they pay cash, check or use their debt card for all transactions.

To save a hundred or so bucks a year there are more things you can do for your business to come out ahead.
First off you shouldn't be making any purchases with cash or a loan without emergency funds and taxes set aside(3-6 months minimum, I have 1-2 years personally). Thats common sense.

Secondly once you know how to make money work for you, expenses can be paid with investment income never touching your principal. There is a big difference between investing for income and "gambling" for huge capital gains.

Most affluent folks invest smartly and know how to make purchases using the system to their advantage. If you think most of the rich never use loans or have no credit score you are incorrect.
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Last edited by GMLC; 12-20-2013 at 09:10 PM.
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  #53  
Old 12-20-2013, 09:23 PM
echo echo is offline
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Quote:
Originally Posted by sildoc View Post
Things happen. Say you buy a 8000 ztr put it on 0% financing through abc company. Spring rolls around you have 10 grand in the bank figuring your going to have the money to pay off the ztr if need be. All of a sudden you ruin a axle of a trailer costs you 1500 to replace and then the transmission goes out of your truck and costs you 4000 to fix. All of a sudden your tax guy comes back to you and said there were some flaws and you owe uncle Sam another grand.
Little things add up and all of a sudden all hell broke loose and you missed a payment and your interest rate is now 21%.
All that on trying to save 100 bucks of interest.
Talk to your more affluent customers and see how they pay. Sure they will all say they have a credit card but most say they pay cash, check or use their debt card for all transactions.

To save a hundred or so bucks a year there are more things you can do for your business to come out ahead.
If you're not confident in your business or management then pay cash. Suggesting that its wrong to others that do have confidence or are able to do it and want/need to build credit is your opinion. For those that are capable, using other people's money is a good idea.
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  #54  
Old 12-20-2013, 09:29 PM
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GMLC GMLC is offline
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Location: New Hampshire
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Quote:
Originally Posted by sildoc View Post
Things happen. Say you buy a 8000 ztr put it on 0% financing through abc company. Spring rolls around you have 10 grand in the bank figuring your going to have the money to pay off the ztr if need be. All of a sudden you ruin a axle of a trailer costs you 1500 to replace and then the transmission goes out of your truck and costs you 4000 to fix. All of a sudden your tax guy comes back to you and said there were some flaws and you owe uncle Sam another grand.
Little things add up and all of a sudden all hell broke loose and you missed a payment and your interest rate is now 21%.
All that on trying to save 100 bucks of interest.
Talk to your more affluent customers and see how they pay. Sure they will all say they have a credit card but most say they pay cash, check or use their debt card for all transactions.

To save a hundred or so bucks a year there are more things you can do for your business to come out ahead.
Either way in your example your screwed. Spend all your cash on a mower upfront and have none left over for taxes and repairs in the end.

For many the only way to grow a business is to use a loan. Land a big contract, buy more equipment, hire more employees and it all gets paid off by the end of the contract plus profit. This is how almost all business is conducted even with the worlds largest companies.

But you need the basics covered first, emergency fund(cash), taxable investments(income), and retirement investments(long term capital gains in a tax deferred account).
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  #55  
Old 12-20-2013, 10:02 PM
Pop639 Pop639 is offline
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So...when IS the best time to buy a ztr?
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  #56  
Old 12-20-2013, 10:07 PM
echo echo is offline
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When you find the best deal. I buy hot suff when its cold and cold stuff when its hot. In other words, off season.
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  #57  
Old 12-21-2013, 07:36 AM
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rreyn1812 rreyn1812 is offline
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When to buy?

Quote:
Originally Posted by Pop639 View Post
So...when IS the best time to buy a ztr?
Probably when you have a certified need and can afford it.

However, if just upgrading and buying new, I would think that the spring would be the best time. Why? You get the latest upgrades on a new mower. The selection should be better because the dealer should have a better selection on the floor. Any special financing deals should be available. And, you put it to work immediately. If you're buying used, or you have an immediate need, then you buy when it's necessary.

About the other issues, dealing with what you should be doing with your $$$; there are so many factors that come into play that a person just has to decide what is best for them with their individual finances.

Personally, I'm well capitalized; I work solo and have low overhead; I have very few bills; I have multiple income streams/retirements; and an IRA that hasn't yet been tapped, but will have to start taking mandatory withdrawals in about 4 yrs. I have a relatively new truck with 50k miles, and a new trailer, 3 mowers, and a solid customer base.

I know a lot of guys are living right on the edge, and month to month, their business is their only/primary source of income and any major hit will push them over the edge.

That's why there really aren't any simple answers! Only you can answer the question based on your personal situation and the amount of risk you are comfortable with or have to take based on necessity.

Good luck!
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2009 Nissan Titan pullling a 18 ft PJ Trailer
2011 Kubota ZD326S (60") - 26HP Kubota Diesel
2010 Bob-Cat FastCat Pro 48" w/Accelerator (20HP Kawa)
Non-commercial 21" walk-behind
Blowers (Stihl BG85/Husqvarna 170BT)
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  #58  
Old 12-21-2013, 07:00 PM
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gene gls gene gls is online now
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Quote:
Originally Posted by Pop639 View Post
So...when IS the best time to buy a ztr?
Usually this time of year is best. Most dealers have a floor plan for equipment. They are allowed six months or so to sell the equipment and after that they have to start paying on the floor plan. Rather than sit on it and make payments all winter I think most dealers prefer to knock off as many dollars as they can to get it sold. I know my dealer is willing to do more talking this time of year.
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  #59  
Old 12-22-2013, 12:43 PM
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TML TML is online now
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So many variables in these business questions.

Has the dealer been around for 20+ years with hundreds of pieces of equipment? If so they are going to get what they want for it regardless of season as opposed to a smaller new dealer that may knock more off to get the sale.

Same goes for person looking to purchase. Are you one of the people still living rent free at home with minimal living expenses, still able to reinvest most if their money back into the business. Or do you have a house and family with kids to support? Even then there are differences. Are you the sole provider or does your significant other have a established well paying job?

Are you someone with another full time job or are you a full time LCO depending on all your intake to run the business and live if as well?
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  #60  
Old 12-22-2013, 12:54 PM
echo echo is offline
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Since he's in CT, cold weather, new models on the way, months before any grass is being cut, etc..., there's no better time to get/find a deal than now IF there's a dealer that has what he wants.
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