Lease or buy new zero turn

Discussion in 'Lawn Mowing' started by Rob's Lawn Care, Jul 16, 2007.

  1. Rob's Lawn Care

    Rob's Lawn Care LawnSite Member
    from Texas
    Posts: 52

    As business grows and more equipment is needed does anyone have any positive or negative recent experience on leasing new zero turn mowers,
    such as scag, ferris, exmark, gravely, or any others?
     
  2. Quiky One

    Quiky One LawnSite Member
    Posts: 50

    Why not buy? Save money that way.
     
  3. Cathman

    Cathman LawnSite Member
    Posts: 72

    Have not been in the lawn care/landscaping business long, but i have been in the medical field for some time. Typically we lease things when it is a new technology which is still growing/being refined and dont want to get stuck with first generation stuff. It can also be cheaper depending on how long you plan to lease, what the rules are to the lease and what not. Major thing is you dont have the capital outlay up front. If you plan to upgrade frequently is also another reason.

    In mowers i would imagine there are quite a few stipulations though. Guessing the major ones being maintenance schedule, time placed on machine and the wear factor. Seems most commercial stuff starts getting banged up pretty quick if you have folks who dont care/pay the bills on it.

    I would make sure and read the fine print though....who knows whats embedded in there lol.
     
  4. Quiky One

    Quiky One LawnSite Member
    Posts: 50

    Nothing you lease will ever be cheaper then buying and reselling. Even at 5% that is $400 on a normal ZTR. When you lease and turn it in you still lose the depreciation, they will charge you for any little wear and tear item they feel could be avoided, and you will not get as much money as you could sell it outright for.
     
  5. TSG

    TSG LawnSite Senior Member
    Posts: 444

    I have heard of a few guys that lease their equipment
    and at the end of the lease they own it.
    I know you can do this with cars
    but my best buddy says he is leasing for now on???????
    I think it is time we go out for a drew
     
  6. txgrassguy

    txgrassguy LawnSite Gold Member
    Posts: 3,083

    Leasing turf equipment is a highly viable proposition provided you are leasing a "package".
    For a start up or low volume - 2 or 3 ztr company - typically it does not make sense.
    However, for larger companies, golf courses, athletic field maintenance, etc it is a well known and solid way to acquire up to date equipment without the capital outlay for purchasing.
     
  7. MJB

    MJB LawnSite Silver Member
    from Wa
    Posts: 2,869

    Leasing is the best way for many small lawn companies. Consider this: I lease my mower make 7 payments per yr none in my downtime. I can write off the whole payment off taxes, and at the end of the lease I own it for $1.

    I hate making payments for equipment in the winter when it's not working. If you need writeoffs this helps a lot. You have to be prepared for a larger payment. Worked for me for 5 machines in 16 yrs. I use Advance Acceptance.
     
  8. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Posts: 3,331

    How much would the lease payment be on a new 42" MTGHS Walker (roughly $9500 new I think)?
     
  9. MJB

    MJB LawnSite Silver Member
    from Wa
    Posts: 2,869

    Depends on how many payments you set it up for. Say you set it up for 7 pyments per yr like I do. For 3 yrs probably $700 for 4 yrs probably 600. I'm just guessing it's been a while since I looked at my contract. Best way to find out is contact Advance Acceptance and ask. I know when I bought my 1st Walker in 1992 I paid $6500 and my payment was $440. per month. But with that mower I was able to add a lot more lawns to make that up and more. I didn't have any winter income so it was a no brainer for me.
     
  10. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Posts: 3,331

    Holy crap, that is like what I gross per month:laugh: :laugh: Guess I will look harder for a used one.
     

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