DO NOT finance through Sheffield!

Discussion in 'Lawn Mowing' started by hughmcjr, Apr 24, 2007.

  1. hughmcjr

    hughmcjr LawnSite Member
    from Oregon
    Posts: 183

    I purchased a Hustler Super Z. Total bill was a little over 11k with bag vac system. I have financed through Sheffield Financial before, but am shocked at how they charge interest. They compound DAILY!

    To put this in perspective on the amount I financed, I will be paying 2k in interest alone which on 12.95% interest rate is ridiculous to say the least. I am a business owner and understand about making a profit, but 1k dollars over the 36 months payment for just shuffling paper would be more than adequate. I am immediately paying off Sheffield with other financing and will save almost half the 2k.

    I am just letting anyone know that isn't aware of interest compounding daily and how much of a scam it is. Sheffield is no friend to the landscape industry with those rates. Avoid them at all costs.:angry:
     
  2. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    It doesn't matter what the compound interval is. If you look at the fine print you will see that the compound works out to an annual rate of 12.95%. The problem isn't the way they compound it, it's the 12.95% interest rate. Your loan should work out to $2333.27 in interest paid over the life of the loan.

    The "extra" $1000 isn't a fee for doing the paperwork, it's what you have to pay to borrow their money.
     
  3. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    We just went through them and we are getting a fixed intrest rate of 9.99%, thats lower than a small business loan we were looking at. The business loan from a local bank was prime plus 2, that comes out to over 11%. Even 12.95 isnt all that bad these days. I could see if it were 19-24% like some of these places like Benificial or something like that.
     
  4. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Posts: 4,993

    Sheffield is a joke.
     
  5. richard1103

    richard1103 LawnSite Member
    Posts: 120

    i love sheffield they have all ways been good to me my rate is 3.9 they are
    good me
     
  6. MLI

    MLI LawnSite Senior Member
    from Ma
    Posts: 464

    If you don't have it.....your only option is opm! That rate is not out of the ballpark. If I were in the finance biz, I'd sure as hell make sure I was making a fair profit for all the late payers/non-payers out there. Bottom line....more of us need them, then they need us!
     
  7. Budget

    Budget LawnSite Senior Member
    from Pa.
    Posts: 368

    I just picked up a new Ferris walk behind at my dealer, they had 6 months same as cash and after that it was 3.6 %. I paid cash for it any how but that was pretty good deal.
     
  8. Gator Done

    Gator Done LawnSite Member
    Posts: 9

    I got 0% for 36 months with sheffield for the hornet I bought.Pretty good deal I thought.
     
  9. tacoma200

    tacoma200 LawnSite Fanatic
    Posts: 5,426

    Never a problem with them or GE. Even on the 0% loans someone is paying the finance company (the mower company, dealer or both). I know every dealer has told me they have to pay a different percentage depending on which loan option you choose. 12.9% is high but they have other plans if you qualify. Depends on brand of mower and your credit rating. Also they don't put leans on mower (at least I never have) so it is unsecured credit, that makes a difference.
     
  10. NELawnCare

    NELawnCare LawnSite Member
    Posts: 175

    Yea, you have to be really careful and be an interest-rate bargin hunter these days. The tiny contract print will kill you. Normally the requirements to meet the small interest rate offers is so constricting you can't meet them.

    I recently purchased a Ferris 1500Z 52" with triple-bagger and financed it through the Yard Card. They were touting 0% for 6-months then it rolls over to a fixed 3.6% for 36-months. That's a good deal!

    When I received the paperwork to sign, it said 0% for 6-months then 14.9% "variable" for 36-months. I had to do some wrestling, but told the dealer that if they want my business they better honor what was advertised.

    I finally got the 0% and 3.6% deal. And I check the statement each month to verify it.

    Crooks! These friggin credit/financing companies make a killing. They are equivelant to loan sharks. I, too, believe is letting everyone in business make a profit. But come on. Let's be reasonable.
     

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