equipment buy or lease?

Discussion in 'Lawn Mowing' started by LawnsRUsInc., Feb 7, 2003.

  1. LawnsRUsInc.

    LawnsRUsInc. LawnSite Senior Member
    from midwest
    Posts: 916

    I was looking into buying new equipment. But not sure if it would make sense to buy it or just lease it. Iam not sure do they hold there value if i purchase. But if i lease i would get newer equipment every couple years? Please help ME!!!
    Jason
     
  2. bob

    bob LawnSite Platinum Member
    from DE
    Posts: 4,254

    Personally I buy. I have a friend that trades in his Grasshopper every year. I'd rather have no payment for a few years, than always having one. Also, mowers don't hold their value like real well. Do a search on this topic.
     
  3. Shuter

    Shuter LawnSite Bronze Member
    Posts: 1,171

    I believe that you should buy your equipment. But now I am considering expanding and getting a new skid steer. I have found a leasing company that will lease a new truck, trailer, and skid steer at reasonable rates with a 10% buy out at the end of lease. Only down payment is 1st and last month payment. Sounds good so I amy go ahead in the spring with this.

    Anything small like mowers and small equipment I like to buy, even if I have to finance it.
     
  4. Wesley's Lawn

    Wesley's Lawn LawnSite Member
    Posts: 211

    Buy you lose to much on a lease, you pay and pay then turn it in and have nothing. Be better to just buy it and then trade it in if you want new equipment every few years. Just my 2 cents.
     
  5. IBGreen

    IBGreen LawnSite Senior Member
    Posts: 726

    Buy it, if you take care of it you will have it for quite a few years after you pay it off. Then it will be making all profit.
     
  6. Deduct the payments right away vrs deduct the cost over the value life.

    Your choice.
     
  7. lawncare3

    lawncare3 LawnSite Bronze Member
    Posts: 1,981

    Buy it. If you have a dumb@%% crew that always breaks things then you will really have a problem. If they are going to be breaking tyhe mowers then YOU will have to be the one that pays for it. Also you get nothing in return. Just my .02
     
  8. WRONG!!!

    If you have people like this leasing is the way to go, you get a new piece of equipment every time you renew a lease.

    When the lease runs out the head ache goes with it.

    Age and lack of knowlage shows here, leasing has many advantages, 1) being you can have a $1 buy out at end of lease, 2) leasing you can start to deduct that mower right away, and many more, but the choice is yours, ask you CPA which will be better for you. You get a whole lot in return, it's just how you work paying for it.

    I leased a trailer, snow plow, salt spreader and peco vac, $1 buyouy, and now winter month payments.
     
  9. Heavenly Green

    Heavenly Green LawnSite Member
    Posts: 171

    Definitly lack of age and experience. This site is starting to get to me. Why is a 15 yr old even responding to this threed? What leasing and financing experience could a 15yr old possible have. Personally I post questions to get educated first hand answers.
    If somone were to post "how to manage 10 crews" Id have no helpfull advice to give.

    Sorry but I had to vent my feelings:angry:
     
  10. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    LawnGodfather, why would you 'deduct the cost over the value life' when you can deduct it all at once with IRS section 179 rules.
     

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