best time to bu a new ztr?

Discussion in 'Lawn Mowing Equipment' started by Vr6Mark, Dec 12, 2013.

  1. T Scapes

    T Scapes LawnSite Bronze Member
    Posts: 1,212

    i never get why people say dont finance stuff Get it then if you have extra cash you can pay extra. but if you need that cash for something else or keep it for materials or repairs just in case and if not put more towards the mower. I had 3 mowers financed put money down paid em off in a year but i wasnt out all that money from the start. Let me machine make you money and then pay the extra cash
  2. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,899

    Only if the rate is 0%. If you are borrowing with interest on depreciating equipment, it is a lose/lose situation.
  3. kwwolfe

    kwwolfe LawnSite Senior Member
    Posts: 252

    Only if you reinvestment rate is lower than your cost of borrowing. If you can borrow at 1% and invest at 2% you are making money.
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  4. T Scapes

    T Scapes LawnSite Bronze Member
    Posts: 1,212

    i only buy my mowers when there is zero percent. On larger purchases it makes no sense to me to shell out a ton of money. I bought a 4720 tractor in the fall and even if i had the cash to pay it i still would of financed it same with most trucks. I am a JD fleet customer so with their discounts its almost like the interest doesnt exist if you buys a couple pieces at a time
  5. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,925

    Smart man!
  6. Kurt6845

    Kurt6845 LawnSite Member
    Posts: 121

    I went thru this same conundrum last year. Truth be told, eXmark runs a 0% finance deal almost year around, now this time of year, you can usually take advantage of deferred payments til April on top of the 0%. A lot of other big name manufacturers do the same thing, or similar. The best time is going to be around January-February. Most dealers are eager to move more products for several reasons, they don't have to pay tax on what they don't have, and they want to move out the last year's models to make room for the new ones. Also, keep an eye out for demo units. Typically you can find them with less than 200 hrs on them and they have been expertly maintained at the dealer (who you can hold accountable if something does break), and they still qualify for 0% financing b/c they still qualify as a "new" machine, but you are going to pay about 1k less if not more(depending on the dealer's wants/needs). If you do go the 0% route though, make sure you understand how the deal works. There is a finance charge for it that the dealer is supposed to pay a portion of and the manufacturer pays the other portion, but a lot of dealers will roll their portion into your financing, so it does not come from their pocket. Just my 2 cents. Good Luck!
  7. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,925

    This will show exactly how the financing is structured, and you will notice a person must carry a 700 or higher credit score to qualify.

    I talked with a friend at Fifth Third Bank today to find out how much weight a good credit score carries with the lending institutions today. I was told you could have a bring home pay of $100,000 per month, but if you did not have a 620 or higher credit score their bank would not lend you money. This proves how important a good credit score is if attempting to do business inside this country. I was also told the interest rate a borrower can acquire varies depending on how high or low their credit score may be. I already knew all the information provided me except for the 620 credit score break point.
  8. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    You can get lenders if you have 0 credit rating. Trust me you can. And if you have a zero credit rating and you have cash in the bank why do you need to get a loan? One of these days you will see what your grandparents did to survive and understand.
  9. puppypaws

    puppypaws LawnSite Fanatic
    Posts: 8,925

    Maybe Oregon is different than the rest of the country, but you can believe me when I say there is no borrowing money in NC without good credit scores. You can get by if never purchase anything of high value, yes, you can pay cash, but in the larger business world this is not possible. The strongest of businesses borrow operating capital, and believe me there is no such thing as carrying a large operating credit line without good credit scores.

    You are telling us in Oregon you can get lenders to loan you money with no credit background, is this what you are saying?
    If you have a 0 credit rating, you definitely have no credit background.
  10. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    Yes, anywhere in the United States you can do this. You need to look a little harder to see who is going to lend to you and they make decisions on several factors.
    However I will still stick with not needing to borrow and pay strictly cash for everything I need.
    You can keep financing at 0% and taking a risk that nothing happens!
    I guess the way I can put it is would you Borrow on a paid off house to buy a truck?
    Bankers will always tell you that you should use their money to purchase. Wonder why!!! They wouldn't have a job if you didn't!
    Companies offer 0% for a reason. They know the majority of people won't pay it off in their time frame and then they get stuck with 18, 20, 30% interest.
    The only thing I would recommend getting a loan for is a house. With a minimum of 20% down and 15 year loan. Only thing that pencils better than renting and appreciates in value.

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