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  #21  
Old 09-20-2011, 01:26 AM
USA Lawn Care USA Lawn Care is offline
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and my simple point is....even if you do know how to handle debt.....you are banking on the fact that tomorrow will be perfect and money will roll in.
things happen...natural disasters, etc....i just keep thinking back to Joplin, MO. Could be a lawn guy, painter, whatever. Finances a bunch of new stuff, payments will be made because he will have money rolling in because there are 20 jobs lined up.
Then BOOM.....tornadoes level the town or an earthquake......suddenly everyone's lawn that needed cut now needs a bulldozer and those 20 paint jobs lined up have walls lying on the ground. If you've financed it because you had to.....and didn't have any money....now you still don't have any money and you have no way to pay for it.
Slow and easy and debt free is simply taking 'Murphy' out of the Murphy's law because eventually Murphy always shows up.
Paying cash is simply a safety net that has kept my business financially stress free the past 2 seasons.
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  #22  
Old 09-20-2011, 06:26 AM
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Florida Gardener Florida Gardener is online now
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Quote:
Originally Posted by MowingMowingMowing View Post
If you're a big business and your equipment expense is substantial then you have a good point, but just for a $3,000 walk behinds for a mowing business is it worth it?

For me, I would much rather just shell out the cash, take the discount (whether it be the dealer, around here that will be 2%-3% and if they don't offer it use your CC, go straight to the bank and pay it off and collect the 2% from them) and be done with it.

Alternatively, you're paying $95 a month. That's one more headache you have to make sure gets paid each month. If I recall correctly, Topsites had some issues with this, where they stopped his direct withdrawal or something.

Everyone's situation is different, but on items that small, unless you are just dirt poor, I can't make sense of it. Time value of money is important obviously, but given the situation, I can't justify it. Just my 2 cents.
I'm totally well off. I could have dropped the 3k and paid the mower off. If Incan get 36 mo. 0%, I will take that every day. If making a payment each month is a headache, maybe you shouldn't be in business. Everyone keeps saying cash is king, so by having more cash on hand, that makes more sense, correct?? For guys just starting out in business, an offer like this is especially good bc they can get new equipment at a small monthly rate without paying any interest. New is nice. New means way less downtime. Plus, your bank isn't giving you money back. They give you points which in turn you can get cash back. I need 15k on my cc for 120. If it makes sense to you to pay cash up front so you can have 25, go for it. I can't make sense how an offer like this doesn't make sense to you??
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  #23  
Old 09-20-2011, 06:36 AM
Hoss4x4 Hoss4x4 is offline
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I do both. I save until I can pay cash and still have cash in the bank. This way once I own it, it is mine and I can save for my next purchase. I have done it both ways and I can sleep alot better at night with no debt. I am hoping I can run my business the same way.
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  #24  
Old 09-20-2011, 07:47 AM
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willretire@40 willretire@40 is offline
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Most of the time those 0% equiment deals have a $300 fee with it that the dealer pays so if you had cash you could have gotten that $300 of. The dealer will normally offer you a better deal with cash. If you go into the funiture store with cash you can save 15% so if you take their finance offer you will be paying 15% off the top. Also only 80% of those 0% loans get paid off on time before the back interest kicks in. I have a friend that has a 0% loan but when he added up the payments he would have been $100 short on the loan therefore the back interest would have kicked I'm if he didn't catch it.
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  #25  
Old 09-20-2011, 07:52 AM
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Florida Gardener Florida Gardener is online now
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Originally Posted by willretire@40 View Post
Most of the time those 0% equiment deals have a $300 fee with it that the dealer pays so if you had cash you could have gotten that $300 of. The dealer will normally offer you a better deal with cash. If you go into the funiture store with cash you can save 15% so if you take their finance offer you will be paying 15% off the top. Also only 80% of those 0% loans get paid off on time before the back interest kicks in. I have a friend that has a 0% loan but when he added up the payments he would have been $100 short on the loan therefore the back interest would have kicked I'm if he didn't catch it.
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The fee on mine was $125.
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  #26  
Old 09-20-2011, 09:01 AM
blk90s13 blk90s13 is offline
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This is my first year and I started with all my equipment paid off in full I owe nobody nothing and love it.

Just my customers owe me some money
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Lots for sale
http://www.ebay.com/sch/approvedjdm/...&_trksid=p3692

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  #27  
Old 09-20-2011, 09:32 AM
MowingMowingMowing MowingMowingMowing is offline
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Originally Posted by diamondlandscaping View Post
I'm totally well off. I could have dropped the 3k and paid the mower off. If Incan get 36 mo. 0%, I will take that every day. If making a payment each month is a headache, maybe you shouldn't be in business. Everyone keeps saying cash is king, so by having more cash on hand, that makes more sense, correct?? For guys just starting out in business, an offer like this is especially good bc they can get new equipment at a small monthly rate without paying any interest.

Actually this, in most cases, is not the way new guys in the business should go. Going out and buying a bunch of new equipment when you are just starting out is foolish, if your biz doesn't go where you expect, you are still stuck with the payments (although I encourage this so I can pick up their equipment at LOW prices when they need to sell lol). Regarding the "no interest", you're still paying a $125 fee up front, so call it whatever you want to call it, but that is extra money your shelling out.

New is nice. New means way less downtime. Plus, your bank isn't giving you money back. They give you points which in turn you can get cash back. I need 15k on my cc for 120. If it makes sense to you to pay cash up front so you can have 25, go for it. I can't make sense how an offer like this doesn't make sense to you??
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I'm not going to argue with you about new vs. used as I can see both sides of the coin, but your statement about cc not giving money back is not necessarily accurate. I bought a $4,000 mower a couple years back, the dealer said if I paid cash he would take 2% off, instead I snagged my mom's cc and got 2.5% back, paid via CC and went straight to the bank and paid it off.

Quote:
Originally Posted by diamondlandscaping View Post
The fee on mine was $125.
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Let me sum this up....

Option #1 (your opinion, and we'll use your $3k walk behind for example and not include taxes for simplicity sake). You buy the mower for $3k, and pay $125 for the 3 years 0% financing, your total cash output is $3,125.

Option #2 (my way) ... I buy the mower for $3,000 paying with CC. I go to the bank, pay it off, and receive $75 back, my total cash output is now $2,925.

Basically, what I'm getting at here, is you are paying $200 more than me so you can spread the payments out over 3 years and use your money however in between instead of paying it out up front. The question you have to ask yourself is is it worth paying an extra $200 to not shell out the full amount at the beginning. Obviously this answer will vary from person to person, but personally, It would not be for me and I'd rather save an extra $200 or put it to use towards other things.

That's my opinion, at least on items in this price range. Obviously if we're talking very expensive items that might interfere with other obligations it is a different story.

You see what I'm saying?
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  #28  
Old 09-20-2011, 09:59 AM
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Florida Gardener Florida Gardener is online now
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Quote:
Originally Posted by MowingMowingMowing View Post
I'm not going to argue with you about new vs. used as I can see both sides of the coin, but your statement about cc not giving money back is not necessarily accurate. I bought a $4,000 mower a couple years back, the dealer said if I paid cash he would take 2% off, instead I snagged my mom's cc and got 2.5% back, paid via CC and went straight to the bank and paid it off.



Let me sum this up....

Option #1 (your opinion, and we'll use your $3k walk behind for example and not include taxes for simplicity sake). You buy the mower for $3k, and pay $125 for the 3 years 0% financing, your total cash output is $3,125.

Option #2 (my way) ... I buy the mower for $3,000 paying with CC. I go to the bank, pay it off, and receive $75 back, my total cash output is now $2,925.

Basically, what I'm getting at here, is you are paying $200 more than me so you can spread the payments out over 3 years and use your money however in between instead of paying it out up front. The question you have to ask yourself is is it worth paying an extra $200 to not shell out the full amount at the beginning. Obviously this answer will vary from person to person, but personally, It would not be for me and I'd rather save an extra $200 or put it to use towards other things.

That's my opinion, at least on items in this price range. Obviously if we're talking very expensive items that might interfere with other obligations it is a different story.

You see what I'm saying?
Yes, I do. My cc doesn't offer that so that wasn't a factor for me. I agree with what your saying as well. I'm throwing out my side of the coin bc there are a lot of pluses of using debt correctly. For someone to say, debt is dumb, or I only pay cash is somewhat ignorant IMO.
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  #29  
Old 09-20-2011, 10:17 AM
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JB1 JB1 is online now
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thats great that you pay cash and your debt free, that is really good. but your only talking about a $3000 dollar mower. Are you going to pay cash if you need a $25k or $30k tractor or skid steer, not me I'm gonna use there 0% money.
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  #30  
Old 09-20-2011, 10:29 AM
MowingMowingMowing MowingMowingMowing is offline
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Originally Posted by JB1 View Post
thats great that you pay cash and your debt free, that is really good. but your only talking about a $3000 dollar mower. Are you going to pay cash if you need a $25k or $30k tractor or skid steer, not me I'm gonna use there 0% money.
refer to the end of my previous post.
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