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Discussion in 'Lawn Mowing' started by Leone LawnCare, Feb 27, 2004.

  1. Leone LawnCare

    Leone LawnCare LawnSite Member
    Posts: 154

    do u think its possible for an 18 year old with no credit and no co signer to get a loan for a vehicle or equipment?
  2. FFMED74

    FFMED74 LawnSite Member
    from Indiana
    Posts: 242

    Depends on a couple of things, one what bank/credit union you have, make sure you go in and talk to your bank/cu people first and see what they tell you. Second, do you have any bad credit descisions yet, like late pays or anything else? You may have to build credit some first, what do I mean, I mean get a store credit card or a regular credit card and do not keep a balance on them, just us them for fuel once and then pay it off, or buy a computer mouse and pay it off, this will show you as having great credit. Also look at the dealer for credit, they have a lot of 12 months, 6 months Same as cash deals right now. Hope that helps some.
  3. NickN

    NickN LawnSite Bronze Member
    from Alabama
    Posts: 1,010

    As a 33 years old,(never thought I'd say that) please let my experience persuade you not to.
    At your age,with no credit,no bank is going to sign a loan for you without a co-signer.So,your next option is a fast loan company.One might give you the loan,but your interest rate is going to be a staggering amount.Please stay away from loans as much as you can,except for the purchase of a home.At your age,if you were to make $8 an hour and you took 15% of that amount and placed it in a high risk IRA or mutual fund account,you'll have about 6-10 million dollars when you get ready to retire.
    You'll be a millionare before you reach age 40.Right now,40 seems like a long time,but you'll get there before you know it.
    You have the chance of a lifetime since you're so young.The decisions you make now, can and will, greatly influence your future.I can't stress enough for you to stay away from loans as much as you can.Buy everything cash.No credit cards either.
    We live in a society that wants quick gratification.We want something and we want it now.Look around you.Everyone is working a job they don't like and they're living paycheck to paycheck.
    So,if you want to get into the lawn and landscape business,that's great!It's fun and challenging.Do yourself a favor though,RUN AWAY FROM LOANS AND BUY CASH!!!:)
  4. Leone LawnCare

    Leone LawnCare LawnSite Member
    Posts: 154

    there is no way i can pay cash for a truck i desperatly need or the new lazer z i have paid cash for everything so far and i owe nothing
  5. swim

    swim LawnSite Senior Member
    Posts: 357

    Someone will loan you the money.
    Is it a wise decision to borrow money. NO
    But to each his own.
    Hope all goes well for you.
    Only experience form our mistakes will teach us.
  6. trimmerhead

    trimmerhead LawnSite Member
    Posts: 53

    The only possible way a bank would give you a loan on a vehicle is if you made a large down payment. I was in the same situation you were in, but I was approved for the loan because of the large down payment. Just be extremely careful. One bad year and you could go under.
  7. allstar

    allstar LawnSite Senior Member
    Posts: 282

    Hi LL,
    If you've decided to seriously pursue this business full-time I don't see anything wrong with you getting a loan.If you don't have any bad credit and can show a loan officer some consistent cash flow you might be able to borrow a small amount of money.If you pay it back on time,or better yet before it's due,then your borrowing power will be stronger,and on and on...If you can't get a loan would your parents co-sign for you?
    Regardless,I encourage you to proceed slowly.Since you're so young you may decide to pursue a different career so don't get in too deep until you're sure this is what you truly want to do...long-term.I don't see anything wrong,however,with you trying to grow your business and establishing credit in the process.Good luck.
  8. metro-hp_48

    metro-hp_48 LawnSite Senior Member
    from TN
    Posts: 874

    "If you don't have any bad credit "
    Around here, I've always heard no credit is worse than bad credit. Don't know. Never needed any.
  9. NickN

    NickN LawnSite Bronze Member
    from Alabama
    Posts: 1,010

    If you can't pay cash for the truck,then do without or get a USED truck.
    Let me make sure I have this correct.You want to buy a new truck and Lazer,of which both depreciate in value at a rate more than any other thing you can buy(excluding boats and sea doos),and you want to borrow money to do it?
    Where are you working now?How many clients do you have now?Did you think about what the insurance is going to cost you for that new truck?Then your liability insurance for your business?How about taxes,SSI,replacement costs,maintenance for your truck and equipment,tags?That's just name a few things.
    I honestly have your best interest at heart.If you can't pay cash for a used truck then how are you going to pay for all the other expenses that come along with it?What about the Lazer Z?Can't you buy a used one?
    This is my last post concerning this.I can't make you do anything.I can only try to keep you from making a big mistake.One that will haunt you for years if you can't keep up the payments for these things.
  10. allstar

    allstar LawnSite Senior Member
    Posts: 282

    I don't think he should go out a buy a new truck,either but don't see anything wrong with him trying to borrow a few grand to buy some decent,reliable landscaping equipment especially if he has a reasonable number of customers.

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