How much debt is safe to carry?

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

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  1. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Even if only half the price is saved up and one's truck dies that is a great down payment. Making the monthly payments a lot smaller.

    Also I do not see nothing wrong with keeping a truck for twenty years, or a mower for ten years, that has been trouble free.

    When something runs good it is wasting money to replace it just because it is old.

    There is a landscaper, I think in Wisconsin, that has a fleet of trucks that are all over ten years old
     
  2. RWI

    RWI Banned
    from GA
    Posts: 125

    Lets see your balance sheet first big dawg. Back up your bark.
     
  3. SRT8

    SRT8 LawnSite Bronze Member
    from CA
    Posts: 1,292



    Im all for having older trucks in the fleet that are paid off instead of having 5 truck payments. As long as the trucks are clean and not beat up i dont see a problem. I have a bunch of 2003-2006 chevy trucks that still look really nice. But i do still buy a new $55k diesel pickup from time to time for towing our bigger machines.
    I dont understand how people can buy new mowers, unless we absolutely have to we will or else we just search Craigslist until we find one. We always buy used mowers in advance to allow for easy growth.
     
  4. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,544

    Sorry pal. My wife doesnt even see my financials. They are for me, my banker and accountant only.
     
  5. mowing4cash

    mowing4cash LawnSite Member
    from us
    Posts: 188

    I just got a 2 year old grandstand with less the 300 hours for $3800. I cant believe no one else in my area did not jump on it. It was on craigslist for 2 week. Guess no one had the cash for it like me.

    Sure on glad I waited and did not finance a new one.
     
  6. cpllawncare

    cpllawncare LawnSite Silver Member
    Posts: 2,659

    Buying equipt in advance of growth may or may not work, we did that last year and the growth we thought was coming didn't come due mostly to the extreme weather conditions we're seeing. Although we're growing quite a bit this year it's not on pace with the projections we made based on past years performance. As of now we're plenty of room equipt wise to grow.At least we don't have to buy anything for a while we're thinking. The newest truck in the fleet is 8 years old and they are all paid for, of course we only have three so no biggie, LOL
     
  7. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,778

    Im trying too keep 5 years ahead of the game, but some of the new stuff I buy isn't all that great. Last year I reinvested over 7000$, this year Im hoping to keep under 2500$. Its a real expensive business to run and debt makes it even more expensive.
     
  8. Mahoney3223

    Mahoney3223 LawnSite Senior Member
    from midwest
    Posts: 995

    Agreed. Many "experts" on here.
     
  9. RWI

    RWI Banned
    from GA
    Posts: 125

    pm me your phone number... and I will call you. and you decide for yourself.... if you are somebody I think I can trust I will give you my facebook page, website, etc

    I have friends in this business that gross 5 mil a year and cannot make their personal truck payment.
     
  10. Michael J. Donovan

    Michael J. Donovan Head Moderator, Online Communities Staff Member
    Posts: 3,418

    ok, enough with some of the comments, etc that were posted in here so time to close this one down

    thanks
     
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