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  #11  
Old 09-05-2007, 07:18 PM
Lawnworks Lawnworks is offline
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Originally Posted by paponte View Post
Double DOH!!!!

What I have learned from being in business is if you can't afford it... don't buy it. A smooth business has equipment that works for the company. Once you start working for your equipment, it's just not fun anymore. Nothing like having equipment sit during slow periods that you are making payments on. If you NEED a piece of equipment, buy what you can afford and make it work. Sure it's nice having new shiny stuff, but it helps build character and makes you feel good when you can afford what you want.
I agree. I try not to finance anything. I have found GREAT deals on used landscaping equipment. If it sits for a month it doesn't matter... its paid for. All it takes is patience and negotiating skill to land the deals. Well and you actually have to save some of the money you earn. I believe in slow stable growth. Debt sucks.
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  #12  
Old 09-05-2007, 09:23 PM
Fairway Land & Lawn Fairway Land & Lawn is offline
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Sure, no debt is a really nice situation. However, on the opposite side, never using your credit is a bad thing too. Using credit is a good thing. Taking advantage of 0% or very low interest rates are the way to go. For example - I bought a new computer on saturday. $1,200.00 dollars financed at 0% for twelve months. I would rather have the $1,200 in the bank. The financing costs me nothing, so why take the cash from capital ? Debt in good standing, is far better than no debt - no debt = no credit......responsibility........
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  #13  
Old 09-05-2007, 09:58 PM
Lawnworks Lawnworks is offline
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Quote:
Originally Posted by Fairway Land & Lawn View Post
Sure, no debt is a really nice situation. However, on the opposite side, never using your credit is a bad thing too. Using credit is a good thing. Taking advantage of 0% or very low interest rates are the way to go. For example - I bought a new computer on saturday. $1,200.00 dollars financed at 0% for twelve months. I would rather have the $1,200 in the bank. The financing costs me nothing, so why take the cash from capital ? Debt in good standing, is far better than no debt - no debt = no credit......responsibility........
I disagree. Not having to use credit, b/c your bank account is loaded is a great thing. Who needs good credit when you already have the money?
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  #14  
Old 09-05-2007, 11:31 PM
Focal Point Landscapes Focal Point Landscapes is offline
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Lawnworks is right - if you can pay for your stuff up front , it doesn't matter that your credit history is sparse - you don't need a credit rating . And it is a great feeling to have most if not all of your equipment paid for - makes life a lot less worrisome . I realize that lots of people have trouble doing it , but in my opinion its the best way to operate. The original poster would benefit from having a better mower , it would certainly improve his efficiency and ultimately his bottom line . But he offered that his credit was bad , which I think is what Lawnworks was referring to - it is unlikely that he will be able to get a dealer to finance a purchase . Maybe a co-signer or buy it in a relative's name. I would wait until I had cash for a good used mower.
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  #15  
Old 09-05-2007, 11:51 PM
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smcunningham smcunningham is offline
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Every mower you see listed below including push mowers were purchased used.....and I would estimate I've gor 3,500.00$ invested in all mowers....
61"tt/52"/48"/36"w/b and a honda and toro.
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  #16  
Old 09-06-2007, 06:18 AM
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paponte paponte is offline
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Quote:
Originally Posted by Fairway Land & Lawn View Post
Sure, no debt is a really nice situation. However, on the opposite side, never using your credit is a bad thing too. Using credit is a good thing. Taking advantage of 0% or very low interest rates are the way to go. For example - I bought a new computer on saturday. $1,200.00 dollars financed at 0% for twelve months. I would rather have the $1,200 in the bank. The financing costs me nothing, so why take the cash from capital ? Debt in good standing, is far better than no debt - no debt = no credit......responsibility........
Agreed, there is bad debt and good debt. It's all about managing your money. The point that you made, is you have the money in the bank, so your back to my original point. Only thing to watch out for is taking advantage of too many offers, then you find yourself in a hole. It's all about managing your money correctly.
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  #17  
Old 09-06-2007, 07:23 PM
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willretire@40 willretire@40 is offline
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I guess wal mart is debt free along with Donald Trump. The people that are sacred to use credit is the ones that will never make it to more then 100k a year IMO. I never here anyone say dont go to college if you can't pay cash for it but yet they get 100k in debt in about 4 years and then have to work for 10 plus years to pay it all back. Whats the difference people. Atleast with lawn equipment you are making the money back everyday.
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  #18  
Old 09-06-2007, 07:30 PM
Lawnworks Lawnworks is offline
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I just don't think using credit is a great idea when you have a history of bad credit. It is kind of a no brainer.

I am not scared to use credit, but I prefer not to... and I did 100k back when I was 18. You don't have to carry debt to be successful.
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  #19  
Old 09-06-2007, 08:54 PM
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YardPro YardPro is offline
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here's a different take on the situation:

do you WANT new equipment just to have new equipment, for the appearance, or bling factor,

OR

do your NEED new equipment because you are so buys you cannot afford any downtime???

if it is the first then is is the same poor decision making that has led you in previous choices that has led to your current bad credit...i would reconsider

if it is the second, then you absolutely should buy new and pay the higher percentage rates... after all, there are your penalties for previous mistakes.... take your medicine and move on.
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  #20  
Old 09-07-2007, 10:41 PM
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PlatinumLandCon PlatinumLandCon is offline
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You really have to learn what's good debt and what's bad debt. If you've got a steady growing business and have jobs lined up, it might not be a bad idea to take on a bit of debt to pay for a better machine. If you're just starting out, it might bet better to stick with used to get you the steady customers THEN buy new using credit.

I plan on buying a truck in a month or two and paying $8-10k down, $10k loan. I feel this is GOOD debt because it'll be used for plowing and landscaping. I think that within 12 months of buying the truck I'll make $20k directly because I have a truck. That means I can pay off the loan 4 years early and still have money on hand. If I went out and spent, say $35k on a truck now, I leave myself open to getting into a jam with payments if something happens and I wouldn't be able to pay it off in less than a year.

You really need to evaluate all the money a machine will make DIRECTLY BECAUSE OF PURCHASING IT in the next 12 months and if it doesn't come close (i think it should make more) than the cost of the machine, it might leave you open to payment trouble.
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