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  #1121  
Old 11-10-2008, 06:41 PM
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TomberLawn TomberLawn is offline
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Quote:
Originally Posted by nnj18 View Post
Ok I have a question, maybe someone can answer this for me with their opinion. Why would you go buy a truck outright for let's say 35k and you have 50k or even 65k? (Just throwing #s out) I would rather put 15k down and make payments. With the $$$$ in the bank you can do things with it while at the same time building credit. Now I know someone is going to say "so that if business goes south you don't have to worry about it", but a smart business man doesn't go out and buy equipment where if he looses a few accounts he's going to go under and by keeping $$$$ in the bank you can keep making payments.....basically what I'm trying to say is I don't understand why you take your $$$ and dump (no pun intended) it into just one piece of equipment.

Btw - that is a beautiful truck! And Micah that truck you have is very sharp!!
If you make payments to yourself instead of to a finance company, you'll make money instead of pay money. Unless you really are in a bind and NEED something you don't have cash for, it's better to save for it and lump sum it. You can put money away in your bank account, just like making payments to a finance company. The only difference is that interest is paid to you instead of you paying interest to someone else. It will take less time to pay for the purchase if interest is compounded to your account instead of a finance company's account.

You can also drive a harder bargain if you pay cash. Salesmen can pull tricks to get a payment you like, but you might be making that payment for several years. If you have cash, you can get bottom dollar pricing. Even with 0% finance options, there are usually cash discounts because they have to figure in the market rate of return. There is no free money. Also, some 0% plans have early payoff penalties. Watch out for fine print.
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  #1122  
Old 11-10-2008, 08:47 PM
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RedMax Man RedMax Man is offline
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Quote:
Originally Posted by TomberLawn View Post
If you make payments to yourself instead of to a finance company, you'll make money instead of pay money. Unless you really are in a bind and NEED something you don't have cash for, it's better to save for it and lump sum it. You can put money away in your bank account, just like making payments to a finance company. The only difference is that interest is paid to you instead of you paying interest to someone else. It will take less time to pay for the purchase if interest is compounded to your account instead of a finance company's account.

You can also drive a harder bargain if you pay cash. Salesmen can pull tricks to get a payment you like, but you might be making that payment for several years. If you have cash, you can get bottom dollar pricing. Even with 0% finance options, there are usually cash discounts because they have to figure in the market rate of return. There is no free money. Also, some 0% plans have early payoff penalties. Watch out for fine print.
Thanks for the insight. I agree and it makes sence.
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  #1123  
Old 11-10-2008, 09:36 PM
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deere615 deere615 is offline
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I paid for my truck and all equipment outright. I have started build credit by a credit card which gets paid off in full each month. When I purchase a shop or a house I might finance but I donot like making payments or having any kind of debt no matter how little it is. JMO
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  #1124  
Old 11-10-2008, 09:46 PM
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AndyTblc AndyTblc is offline
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I kind of liked making payments, because I didn't have to pay it off and take a large chunk out of my savings, I just added my truck payment to my cash flow amount and just went from there, I did pay the rest of it off last month, so no more monthly payment. But I want a bigger truck now.
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  #1125  
Old 11-11-2008, 06:23 PM
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RedMax Man RedMax Man is offline
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Knocked out 9 residential cleanups today. 4 guys. 8 hours.
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  #1126  
Old 11-11-2008, 06:27 PM
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Thanks Joey for your hard work and getn along with me.
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  #1127  
Old 11-11-2008, 06:32 PM
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  #1128  
Old 11-11-2008, 06:34 PM
slamjamrockinman slamjamrockinman is offline
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WOW! 9 resis in one day, that is impressive. I guess it does help working with another lco as long as you make sure everything is fair.
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  #1129  
Old 11-11-2008, 06:36 PM
oakhillslandscaping oakhillslandscaping is offline
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nice sign thats a lot of leaf cleanups you must have been hauling a$$
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  #1130  
Old 11-11-2008, 06:37 PM
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Getn dark...
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Little Wonder, Stihl, ect. ect.....
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