Bad boy stander update

Discussion in 'Lawn Mowing' started by CraigPLC, Sep 21, 2012.

  1. caseysmowing

    caseysmowing LawnSite Bronze Member
    Posts: 1,881

    That is why we are in the mess were in. I have friends that did this samething but they did it with student loans. Bought furnture, tvs, trips, beer, gas, you name it. Then complain about the interest and payments. Went to school for next to nothing ( Unlike my wife ) and now pay about 800 dollars a month to student loans a piece ( they are married). For the next 30 years!!!!! And they used to think less of me because I didn't go to college. lol College is overrated anyway. Sorry for the rant.
     
  2. retrodog

    retrodog LawnSite Silver Member
    Posts: 2,420

    Leasing is a huge tax benefit, and keeps all your equipment under warranty and looking better than your competition. I push it pretty hard to legit lco's, but always ask your tax person for to get the most out of your money!
    This is from Advance Acceptance, I know they do all of snapper, ferris, and simplicity factory financing, but they will do anything. One machine or 50, it requires a normal app like a loan and good credit. I usually pay to buy the unit back at the end of the lease, and split half the profit with the customer that I sell it for.... If my tax man said it right, its a 100% write off when rented or leased, and if you purchase it right out, you only get interest write and depreciation of the unit... Big companies lease all their vehicles, but little companies can benefit too as long as you are not in the red to start with...

    25 Month Term Lease*
    Factor (.0359)
    Example; $7,000 unit = Payment of $251.30/month
    - 25 Payments
    - Offers true options at end-of-lease either:
    (a) Buy the equipment
    (b) Walk away - no obligation!
    - Residual is 25% of equipment cost

    37 Month Term Lease*
    Factor (.0268)
    Example; $7,000 unit = Payment of $187.60/month
    - 37 Payments
    - Offers true options at end-of-lease either:
    (a) Buy the equipment
    (b) Walk away - no obligation!
    - Residual is 20% of equipment cost
     
  3. Ridin' Green

    Ridin' Green LawnSite Fanatic
    Male, from Michigan
    Posts: 13,755

    I always appreciate your posts, and the info you provide, but-

    if I understand it correctly, you get 100% write off for the amount you actually spend per year on the lease (and any down payment). It comes out very close to the same when you buy outright on a per year basis. On top of that, you get at lleast some of it back when you sell it or trade it in. I know some look at it as a tool to do work, but I look at my machines (including my handhelds) as large investments, and I go out of my way to keep them looking new as long as possible. I usually make more on resale than many would because of their condition.
     
  4. retrodog

    retrodog LawnSite Silver Member
    Posts: 2,420

    Not for everyone, but i have 2 bigger guys that trade in every 2 years mowers have 1200 to 1500 hours on them. One runs 725 and 430 grasshoppers that sell around 14 to 15000 each. The lease cost almost as much as buying, but instead of getting 30 cents on his dollar write off, he is getting the full dollar as a write off. Trade in he is averaging $6000 a machine, figure in 4 machines a year, he is gonna get a huve write off to offset the big dollar contracts he has. Je is getting an extra $4000 extra in write off per machine even with the losses he takes trading in, its a homerun. I do have a few that do 2 or 3 every 2 years there tax people want them to lease to stretch more write off money. Wont work unless you net good to begin with. Sorry for the post hog....lol
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  5. Ridin' Green

    Ridin' Green LawnSite Fanatic
    Male, from Michigan
    Posts: 13,755

    Info is always good. Appreciate it too.:)
     
  6. TriCountyLawn

    TriCountyLawn LawnSite Bronze Member
    Posts: 1,517


    Yeah I have seen that play out and I agree college is a scam. My wife is on her last semester of nursing school and I dont know how other ppl did it but were lucky if theres 600-1200.00 left over after books ,school, gas etc. It will be a nice additional income when its over.
     
  7. Turf Dawg

    Turf Dawg LawnSite Gold Member
    Posts: 3,719

    Plus in Texas you have to pay your county aprasiel distric the same tax rate on your house for what you own for the bizz, but not for leased equipment. That is one reason why most lease the high dollar vehichles.
    Posted via Mobile Device
     
  8. LibertyFarmLandscaping

    LibertyFarmLandscaping LawnSite Bronze Member
    from NE TX
    Posts: 1,064

    Nursing school is a little different, so many degrees are useless. It is one of the most secure degrees you could get. Also you will have good medical insurance on top of the income.
     
  9. College is a scam? See how many jobs you can get where you can make a good living without a college degree....I don't mean owning your own business either, I mean working for someone else.
    Posted via Mobile Device
     
  10. Ridin' Green

    Ridin' Green LawnSite Fanatic
    Male, from Michigan
    Posts: 13,755

    Yea, but on the other side of that coin, there's a ton of young people are out there with a college degree that don't have any job, or work at some entry level job. Right now, college is a waste of time. Maybe down the road things will pick up and then a degree will be worth the beau-coupe bucks it cost to get.
     

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