How much debt is safe to carry?

Discussion in 'Business Operations' started by 32vld, Jul 5, 2013.

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  1. RWI

    RWI Banned
    from GA
    Posts: 125

    You need to reread what i said about gross and savings in the bank. You did not get it.
     
  2. RWI

    RWI Banned
    from GA
    Posts: 125

    If you are so damn successful why CAN'T you pay cash?
     
  3. RSK Property Maintenance

    RSK Property Maintenance LawnSite Bronze Member
    Posts: 1,485

    some people just don't feel secure if they take the money out of the bank and pay cash for something like a mower or truck. I personally feel just fine doing so, and do so whenever possible. I hate getting a statement in the mail and having a bill to pay. paying cash is for people who have money, financing is for people who don't generally. usually if you have the cash for something you can find the same thing a few years old in like new condition and save a lot of money. as to where if someone doesn't have the money. the money they will go out and finance brand new or almost new. why else would someone want to pay more for something. like a truck or trailer or piece of equipment. I wouldn't, and i'm far from the smartest guy on here, and far from the dumbest. but i can figure that out. even at 0% your still paying more vs. paying cash right then and there. I guess if your looking at trucks and your dead set on a newer truck and its gonna cost 30,000 and you have 35000 saved i could understand why someone would want to finance it vs. taking almost everything they have saved to buy the truck outright and then register it and insure for a year. that safety net is nice to have. I sleep easier at night with a nice safety net in the bank vs. when i don't have that.
     
  4. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,268

    Ive been in business 6 years and have not borrowed a penny. Last year I reinvested over 7000$ in the business. If my truck lasts another 20 years Id be thrilled, and it just might.
     
  5. RWI

    RWI Banned
    from GA
    Posts: 125

    I bought this 06 Isuzu diesel with 79k miles for $7300. I had to send one of my guys to Mississippi to pick it up. It originally had a crappy flatbed on it. I bought the box for $800 from a friend of mine, we mounted the box and painted the box ourselves, welded a dovetail for it ourselves, changed two tires on it ourselves(I have a tire machine)... I think I have about 12k in it now. One of my friends that owns a tree service offered me 25k for it, but these crew cabs are hard to find a good deal on so I am going to keep it. My graphics designer is working on a complete box and cab wrap design for it now to match my other trucks.

    isuzu.JPG
     
  6. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,268

    Nice truck RWI, I paid 6k for for my 3500 cab over chevy 2000 model with 18' bed and 90k miles, that was 6 years ago. I had to put 4 tires in the rear and that was 700$. Last winter I put about 500$ in parts in it. I use it on a dailey baises.

    I would be ashame to but my smelly axx in a new vehicle after working all day.
     
  7. RWI

    RWI Banned
    from GA
    Posts: 125

    Ha! You mean you dont want to totally destroy a 60k cowboy cadillac?
     
  8. vegandude

    vegandude LawnSite Senior Member
    Posts: 450

    I wonder if some people plan their purchases several years in advance so that the money is saved in a separate NEW EQUIPMENT ACCOUNT. Jeez. What a concept:hammerhead::hammerhead:
     
  9. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,520

    Last edited: Jul 20, 2013
  10. RWI

    RWI Banned
    from GA
    Posts: 125

    I really dont want to be big. I actually fire clients every month to replace them with better richer clients. I dont want to make 5 mil a year and net 500k, i want to do 2 mil and net 500k. And i want to run everything myself. You do not deal with a dumbass supervisor on your landscape design, you deal with me. I know it limits my growth, but i need the personal satisfaction of creating it, my guys installing, and my guys maintaining for the next 20 years.
     
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