Lease, Finance, or Purchase

Discussion in 'Lawn Mowing' started by driggy, Sep 26, 2003.

  1. driggy

    driggy LawnSite Member
    Posts: 20

    My Girlfriend (partner) asked about Leasing our equiptment,
    Does anyone want to comment? If so what do you lease,
    finance, or pay cash for, and what if any are the advantages,
    or disadvantages.

    Thank You,
     
  2. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    Personally i don't like to owe anyone.But at times you do what ya got to do.Leasing would be my least desirable option,Just don't like the idea of someone else deciding what it may or may not cost me at the end of the lease.JMO
     
  3. work_it

    work_it LawnSite Senior Member
    Posts: 976

    Not only that, but you're not building up any ownership/equity. I know what they'll tell you, but take a vehicle for instance. After you pay on it for 3 or so years they give you the option of buying it at the agreed price (3 years earlier). In that 3 years you could have almost paid off a good used vehicle. The only positive point that comes to mind is that they cover the service on it for 3 years. Weigh your options carefully before jumping into any situation. Everyones needs are different, and only you can determine what's best for you.
     
  4. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    I leased 2 mowers with a $1.00 buy out at the end. It was easier than financing but there was no early payoff benefit.

    I'd do it again, they were great folks to work with.
     
  5. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Refer to your CPA, they are the ones that know what's right for YOU. Way, WAY too many outside variables to decide this one. Also, there's a lot in the archives here about this, a search will yield many discussions. :)
     
  6. Black Water

    Black Water LawnSite Senior Member
    Posts: 250

    If i can't pay cash for it i don't have it. then again, i dont have much.:D
     
  7. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    Nor do you owe much...........

    Your thinkin' right.
     
  8. T.E.

    T.E. LawnSite Senior Member
    Posts: 799

    This is a/or can be a touchy subject of whether to buy or lease. There is no ONE way that works for everybody, but to say (not that anybody did) that one way or the other is wrong simply shows to me, that not everybody understands or has good business knowledge. Example just this year I NEEDED a Z rider I had the cash to buy it out right,but instead I leased it KEPT my money all of this is a tax right off. I can pay it off early at a negotiable price and if I make all the payments I owe a dollar at the end of the lease. If I had bought it out right I would have to depreciate it out over a course of years. The answer is what will benefit your company.
     
  9. driggy

    driggy LawnSite Member
    Posts: 20

    Thanks for all the responses, I misunderstood her question, She told me that she met someone in the business that leased all their eqiup (mowers ect.)on short term leases (1-2yrs), Let their employees abuse the heck out of them, then replaced with new, Ifigured a large corp would probably do this to reduce liability and maint. costs but not a little guy who respects and maitains his own equip.
     

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