Is it better to lease or buy Mowing equipment ??

Discussion in 'Lawn Mowing' started by ztrx, May 6, 2004.

  1. ztrx

    ztrx LawnSite Member
    Posts: 53

    Is it better to lease or buy mowing equipment?? It seems to me that it would be better to lease mowers or trade them in every two or three years, That way you can better control monthly expenses and eliminate costly downtime not to mention increased productivity and improved employee morale !!!
     
  2. brucec32

    brucec32 LawnSite Platinum Member
    Posts: 4,403

    With current tax laws you can fully expense a purchase in the first year you buy a piece of equipment up to a pretty high limit that most of us won't exceed. Leasing used to have an advantage there. Now it seems reversed.

    You can buy and sell mowers just like you can lease them and turn them in. It's theoretically going to be the same. The difference would be in the deal you strike.

    I leased a mower but it it was one of those "buy it at the end for $1" deals, so it was really more like a purchase.

    My wife is in the leasing business, at a previous job in the industry she even handled some mowing equipment. leasing is fine, but know your stuff. Lots of people overpay leasing because they don't know how to calculate one properly or just plain agree to bad terms.

    There's no magic bullet to make equipment cost less. I pay cash now for everything and sell them myself when I feel it's time to replace them.
     
  3. Vladslawn

    Vladslawn LawnSite Member
    Posts: 35

    In my opinion buy. Now you have complete control and maximum flexibility to do what & when you want, given market/business conditions.

    Leasing has its place and can be a good option for the right situation and the right person.

    Good luck in your decision.

    Vlad
     
  4. Outdoor Services

    Outdoor Services LawnSite Senior Member
    Posts: 283

    Just woundering if there are more thaughts about leasing form exmark or your local dealer. Do any of you still do this, and if so would ya do it again come renue time or just buy when the time came. What a your thaughts.
    I boughta used walk behind last time, now I'm looking to expand to a Z 48 or 52" for the coming season and am looking for input about buying or leasing.

    Scott
     
  5. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    I have actually been discussing this leasing idea with several other guys in the business. Most companies are willing to offer 0% interest for 36mo's, or similar offers that are making it more and more entising to me. At the end as stated there is usually a $1.00 buyout, or you can trade it towards new machines.

    Depending on the size of your operation, typical trade times are 3-5 years anyway. I have still to do more research and homework since I have been kinda busy lately. I will be looking into this more towards the end of the month. :)
     
  6. Bray

    Bray LawnSite Member
    Posts: 87

    The price for most machines in the buisness are still pretty reasonable and I just don't see paying for something you won't ever own. You may like the deal they make you but make sure you look at it very closely.
     
  7. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Remember though there is a reason that financial experts call Leases, Fleeces.
     

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