Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #11  
Old 08-31-2006, 11:46 PM
Howie's Lawn Care's Avatar
Howie's Lawn Care Howie's Lawn Care is offline
LawnSite Senior Member
 
Join Date: Jun 2005
Location: Greenville, Ohio
Posts: 513
Quote:
Originally Posted by tacoma200
I often wait till they have a 12 months same as cash deal. I finance the equipment through them and then refinance at 11 1/2 months which eliminates the first years interest. I get a personal loan at the bank. And pay it down very fast. I end up paying very little interest.
I never thought about doing it that way. Couldn't you get a 12 month no interest, realize you couldn't pay it, and then just refinance at the bank? I think any handheld equipment or ZTRs should pay for themselves in one to two seasons of use. I don't know about vehicles though. I guess alot of people use their personal vehicles.
__________________
HOWIE'S LAWN CARE
2006 CHEVY 2500HD 4X4, 6.0L V8
2006 AMERICAN 6' X 12' UTILITY TRAILER W/ 2FT SIDEWALLS
2006 TORO SR4 SUPER RECYCLER 21"/195CC B&S
2004 HUSTLER MINI Z 52"/23HP KAWASAKI
SHINDAIWA T231 TRIMMER
SHINDAIWA LE261 EDGER
SHINDAIWA EB630RT BACKPACK BLOWER
WEED EATER HEDGE TRIMMER
WEED EATER HANDHELD BLOWER
Reply With Quote
  #12  
Old 08-31-2006, 11:56 PM
tacoma200's Avatar
tacoma200 tacoma200 is offline
LawnSite Fanatic
 
Join Date: Mar 2004
Location: Southern Kentucky
Posts: 5,427
Business practices

I only work at this part time and I have no problems paying the equipment off. I am very disciplined and don't skim the profits right now. I owe on the house and mowers, thats it. But I drive a 92 GMC (in great shape) not a 2006 dually diesel. But taking months shopping comparing prices on such things as mowers has saved me thousands of dollars. I have objects I can use a collateral in case of an emergency also. The bass boat will go before the mowers.
Reply With Quote
  #13  
Old 09-01-2006, 12:03 AM
JTF40's Avatar
JTF40 JTF40 is offline
LawnSite Senior Member
 
Join Date: Sep 2005
Location: Chapmansboro, Tennessee
Posts: 876
Other than your home/property, there is NEVER an excuse for financing anything - even autos, lawn equipment, vacations, etc. Yes, I have financed tens-of-thousands of dollars of "stuff" over my lifetime. However, other than my mortgage, I owe nobody nothing. It took many 70 hr. workweeks to get out of consumer debt but now, I can sleep at night - 20 years ago I couldn't.

In summary, try to save to buy what you want. Remember the 22nd. chapter of Proverbs - "The borrower is slave to the lender."



"Debt is dumb, cash is king, and the paid-off home mortgage HAS taken the place of the "BMW" as the status symbol of choice." Dave Ramsey
__________________
A MILLIONAIRE IS TOTALLY BROKE - WITHOUT THEIR CHARACTER AND INTEGRITY !!!!!
Reply With Quote
  #14  
Old 09-01-2006, 12:13 AM
tacoma200's Avatar
tacoma200 tacoma200 is offline
LawnSite Fanatic
 
Join Date: Mar 2004
Location: Southern Kentucky
Posts: 5,427
I know where your coming from

Quote:
Originally Posted by jtf40
Other than your home/property, there is NEVER an excuse for financing anything - even autos, lawn equipment, vacations, etc. Yes, I have financed tens-of-thousands of dollars of "stuff" over my lifetime. However, other than my mortgage, I owe nobody nothing. It took many 70 hr. workweeks to get out of consumer debt but now, I can sleep at night - 20 years ago I couldn't.

In summary, try to save to buy what you want. Remember the 22nd. chapter of Proverbs - "The borrower is slave to the lender."



"Debt is dumb, cash is king, and the paid-off home mortgage HAS taken the place of the "BMW" as the status symbol of choice." Dave Ramsey
I know where your coming from but how would the average business get started without a loan. Say you wanted to open a restaurant, convenience store, small company of any kind, etc. Most large company's and successful people (those that didn't inherit it) had to have financial backers or borrow money. I'm sure Bill Gates had some help getting out of his garage workshop. Even for a college education, which is an investment means borrowing money for alot of people. I respect you opinion ,mine is just a little different.
Reply With Quote
  #15  
Old 09-01-2006, 12:24 AM
Dashunde Dashunde is offline
LawnSite Senior Member
 
Join Date: May 2005
Location: St. Louis, Mo
Posts: 624
The simple answer... It's totally fine if your interest rate is low.

And it's totally great if you can get one of those 0% loans if its fully paid off in 6 months (or whatever they say), and your able to make that work.
Be weary of the not-fully-paid-off in time rate though, it might jump from 0% to 23% or worse.
Reply With Quote
  #16  
Old 09-01-2006, 12:33 AM
lawnman_scott lawnman_scott is offline
LawnSite Fanatic
 
Join Date: Jan 2001
Location: st pete, FL
Posts: 7,549
I think I paid about $8,200 for my exmark, and got a whopping $600 trade in on my great dane (a fair price), and my payment is about $250 a month. I dont need a whole lot of work to pay that do I? If you have the money laying around, pay it, otherwise a small payment on something that can make you alot of money consistantly is a good deal.
Reply With Quote
  #17  
Old 09-01-2006, 01:59 AM
ACutAbovesiny's Avatar
ACutAbovesiny ACutAbovesiny is offline
LawnSite Senior Member
 
Join Date: Aug 2006
Location: Staten Myland, New York
Posts: 590
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.
Don't get carried away and you'll be fine. I finance alotof my equipment but make sure that I have the business lined up to afford all my payments. Just don't get in the habit of saying "I have the credit for it...CHARGE IT"
Reply With Quote
  #18  
Old 09-01-2006, 02:02 AM
ACutAbovesiny's Avatar
ACutAbovesiny ACutAbovesiny is offline
LawnSite Senior Member
 
Join Date: Aug 2006
Location: Staten Myland, New York
Posts: 590
My dream and I'm sure the dream of others is to get a job that requires you to buy a peice of equipment and profit enough from that one job to pay it off at the end of the year. This way any other jobs that require the use of that equipment would be all profit.
Reply With Quote
  #19  
Old 09-01-2006, 02:08 AM
HOOLIE's Avatar
HOOLIE HOOLIE is offline
LawnSite Gold Member
 
Join Date: Jun 2004
Location: Northern Virginia
Posts: 3,986
If you actually have a lot of cash on hand...you can make more money by investing it than you would pay in interest on an average loan...really not fiscally smart to keep large amounts of cash in low-interest savings so you can "pay for it all by yourself" when you want a ZTR or truck...
Reply With Quote
  #20  
Old 09-01-2006, 02:29 AM
Evergreenpros Evergreenpros is offline
LawnSite Bronze Member
 
Join Date: Jun 2004
Location: Western Washington
Posts: 1,167
Dumb to use your cash when they offer to use their cash for nothing (0%).

As far as money management there is a simple rule: Always use the cheapest money.

Even if you keep that 8k in a 1.5% savings account you would be better off taking the 0% financing. If you insist on keeping your money in a mattress, use your money since it looses 3-5% per year.
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.comô - Moose River Media
All times are GMT -4. The time now is 02:52 PM.

Page generated in 0.10089 seconds with 7 queries