Is this a good deal?

Discussion in 'Starting a Lawn Care Business' started by paulslawn, May 21, 2006.

  1. paulslawn

    paulslawn LawnSite Member
    Posts: 4

    Hey all,

    I used to do this business a while ago for someone else and I'm thinking about starting up an operation of my own. I stumbled upon this deal and I'm not sure if its decent or not. I backed into the math and it comes out to a purchase price of around $5350(the website just gives the monthly payment, term, and apr)

    Thanks

    Equipment Package New.
    Package includes: 5'x10' utility trailer, locking rack system for blowers/trimmers, Exmark Metro 36" walk-behind mower, McLane edger, Echo backpack blower, Echo trimmer. $204 per month + tax with approved credit through Sheffield Financial. 30 month @ 12.95%. Restrictions apply, see us for complete financing details.





    http://www.buckeyepowersales.com/lawngarden/UsedEquipment.asp
     
  2. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    You'd be paying $6120 for new equipment that has a normal retail worth around $4200-$4500
     
  3. mch181

    mch181 LawnSite Member
    Posts: 47

    doesnt seem bad to me
    is this a one time thing or do they make a bunch of packages and sell them?
    im interested how many months is the term
     
  4. Freddy_Kruger

    Freddy_Kruger LawnSite Bronze Member
    Posts: 1,064

    You gotta make those payments during the slow or off season as well. But if it's your only option. It cost money to get into business for yourself, beats working thats for sure.
     
  5. paulslawn

    paulslawn LawnSite Member
    Posts: 4

    Its 204/month for 30 months at 12.66% apr. They don't list the actual price but I used a loan calculator to back into a price of about $5300 cash. They ran a deal like this last year with used equipment for $79/month. Unfortunately they don't post prices for new equipment on their website. In fact.. in doing research there is very little online info for the MSRP on commercial equipment. Dealers must want you to come to their showrooms instead of shopping around online :)
     
  6. paulslawn

    paulslawn LawnSite Member
    Posts: 4

    Yeah, that's a pretty high rate, I could probably do better at my bank. I'm just trying to figure out if there's much savings by going with a package like this or not. I'm going to call them in the next few days to see what they say. I'll post their response sometime in the next day or two.
     
  7. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    6x12x2 Trailer, a real one with registration and class-III hitch mounted on your truck and ready to roll: $1,500 new, warranty.
    Decent used Wb, like a TORO: $2,000
    A real weed-eater, Stihl FS-100: $330, 1-year warranty
    A real bp blower, Stihl br-600: $500, 1-year warranty

    Total: $ 4,350, cash upfront.

    So keep working your job and be a slave for the next 3-4 years while you sock away as much cash as you can. That's what I did, it blew hard but to have 5 thousand dollars CASH to start out with was what kept me through the first year, which is to say I would've never made it without the 5k.
    Use the left-over 600 to buy shovel and rake and tarp and jumper cables and lopers and shears and wheelbarrow and spreader and a spare belt and spare blades and oil and gas and you should be out of money by now but at least you got some STUFF !

    Do as you wish, you see my advice.
     
  8. MIKE72K

    MIKE72K LawnSite Member
    Posts: 23

    If you go with the package you actual price is $5,204 and you will spend about $915 in interest. If you go with something like what topsites suggests then you will save about $70 per month at the same rate and only spend about $765 in interest. If you pay cash then you save a lot more. Paying cash is always the best bet. But if you can't then you may want to save a little and go with slightly used and get better equipment.

    mike
     

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