Cash or Credit??

Discussion in 'Business Operations' started by perfection lawn care, Apr 30, 2002.

  1. perfection lawn care

    perfection lawn care LawnSite Member
    Posts: 30

    I know everyone of us would like to pay cash outright for our new toys, but was wondering just how many acually are? What is your best theory for new purchases?
  2. AK Lawn

    AK Lawn LawnSite Member
    Posts: 186

    don't be me, pay cash, i am working for the next few years without profit to pay back debt, always pay cash if possible, cause in most cases if you can't you probably do not need it that badly
    AK Lawn

    LAWnENFORCER LawnSite Member
    Posts: 65

    I used to have AK's take on this, but if you have poor equipment(me) then you can not make money, therefore it is difficult to save. I am currently looking into purchasing a lazer hp. I can't decide if I should buy used or just get new and have a warranty. Either way I would have to finance.

    I recently found a lazerhp 60" w/ 20kohler(120 hrs) and they are asking $5200. This is a major purchase for me considering I am part time. I just hate the idea making payments for 3 or 4 years for a lawn mower.

    If and when I do I will always pay extra towards the principle and shorten the term.

    Any input, gripes or snide remarks will be accepted.

  4. AK Lawn

    AK Lawn LawnSite Member
    Posts: 186

    Lawnenforcer it is easy for me to say this cause yes i have all of the equipment, and yes it is all financed, and yes it is all worth it just hate being in debt!
    AK Lawn

    LAWnENFORCER LawnSite Member
    Posts: 65

    One thing I have learned is "you got to have money to make it"! What do you think of the price for the hp. I want to get it "so bad" but I don't really need any more debt. In general is it true that a ztr will cut your time on a job in half. If I can do that I think I could swing the payments.

  6. corban

    corban LawnSite Member
    from K.C. Mo
    Posts: 49

    The question that I would ask you is the question I asked myself. Would getting this machine just save time or would it open up more time for more jobs. In my case, I can handle everything I've got with a 48" wb. I wanted a 62" ztr to be "faster" even though I wouldn't take on more work. I guess what I'm saying is to try and survive on what you've got until you no longer can do it. Is saving two hours a week worth spending an extra $250 a month for four years. I'm only part time and don't have time for more lawns. I understand that some desperately need the big stuff, but that all depends on the job.

    LAWnENFORCER LawnSite Member
    Posts: 65


    I see whatt you mean, sorry I did not specify. I figure if I cut my time down close to half, then I could get close to doubleing my accounts. I turn down jobs all the time, not cause I want to, because I just cant find time. I also work a ft job. Right now I have six people on a waiting list for next season.

    thanks for the info

  8. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    If you buy a ZTR you would have more time. When I made the switch a few years ago, I saved at least a 1/3 of my time. I went from a 30hr\week moweing to a 20hr\week moweing back then. I soon filled them saved hours plus some. My mower has payed for itself and some. By the way I payed cash. I will say that If you have alot of fensed in lawns then it won't save you much time.

  9. bruces

    bruces LawnSite Senior Member
    Posts: 648

    I'm in kind of the same situation. I just picked up a sizeable account (4 acres weekly, with an additional 3 acres biweekly). It will be a strain to get it done with the equipment I have in the time I have available.

    I would like to purchase a 60" Lazer or DC, but would have to finance a good portion of the purchase price. If I buy it, it should save me a good deal of time on this account and a few others. That would give me the opportunity to take on more accounts. If it costs me $250 to $300, it doesn't take too much new work to pay for it.

    On the other hand, I really don't want to borrow another 8 or 10,000.

    I'll see how things go the first week and then decide, but I'll probably go for the new machine so that I have the capability to take on new work.
  10. TJLC

    TJLC LawnSite Bronze Member
    Posts: 1,308

    I've always paid cash for my equipment until I bought my new 2001 52" Lazer Hp. Fortunately at the time Exmark was offering 3.9% for 12 months. Only 10 more payments and she's all mine. LOL

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