Pay in CASH or do it MONTHLY?

Discussion in 'Lawn Mowing' started by The Lawn Boy Pro, Oct 5, 2003.

  1. The Lawn Boy Pro

    The Lawn Boy Pro LawnSite Bronze Member
    Posts: 1,217

    Which do ya'll think is better when buying new equipment, especially on 10 grand mowers?
     
  2. Tony Clifton

    Tony Clifton LawnSite Senior Member
    Posts: 865

    If you are intersted in growing your business, and the finance rates are low (as they should be right now) then do it monthly over 3 years or so. Use the cash that you didnt spend right away on marketing, etc., This is how you make your money work for you.
     
  3. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    Mostly depends on personal or business situations. I just paid in 'cash' for my new Tiger Cub. I did this because I already have two trucks that I'm paying for and didn't want another monthly payment in case we run into another drought in the next year or two. Another thing to consider is the interest rate that you will be paying on equipment, it probably won't be as favorable as your vehicle or home. Finally, Scag has no payments no interest for 6 months but they charge you 2% and my dealer told me this and said that most people don't realize that and that would have cost me an additional $140 on the mower that I would rather pay in cash even though that was only 4% interest which is lower than both vehicles and my home but I guess I like the idea of having it all paid for much more and no worries over wintertime of having to pay for it at the beginning of the season.
     
  4. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    Like the old folks say.........if you can't pay for it with cash then you don't need it.

    Wish that was always the case.

    I like cash, just never have any.

    Talk with you accountant......I don't know if I'd put all 10g's on it but maybe a nice down payment........that cash could come in handy somewhere else.......like a savings account or retirement plan.
     
  5. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

  6. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I feel that it all depends on your finanical situation..if you have the extra cash to spare then pay for it in cash, if you don't want to stick your neck out that much up front then do it monthly
     
  7. Mowmyyard

    Mowmyyard LawnSite Member
    Posts: 28

    If you have cash, you are in a wonderful situation. All that was mentioned on this thread are correct, it depends on your financial sit. But I would suggest puting some of that money in a Roth account and then decide how best to go forward. A lot of people do not fully comprehend Roth IRA's but it would be worth the time invested to find out. Bottom line: put 3000.00 in Roth, lease with 1.00 buy option is the smatest way for a business that wants reduce taxes and put a little away for themself. Did I mention that you can get your original contributions at any time tax/penality free.

    Did not mean to preach, just thought I'd drop my 2 cents in.
     
  8. Jimmy348

    Jimmy348 LawnSite Member
    Posts: 133

    Finally, Scag has no payments no interest for 6 months but they charge you 2% and my dealer told me this and said that most people don't realize that and that would have cost me an additional $140 on the mower.

    Good point. I believe that all if not the majority operate this way. Prior to purchasing my exmark I was offered the zero down, zero payment deal and it sounded good. However, its just another bank that is giving you financing and it doesn't really matter what brand of mower you are purchasing. That 2% may not sound like much but it sure ain't zero like they advertise.
     
  9. brentsawyer

    brentsawyer LawnSite Senior Member
    Posts: 663

    Did I mention that you can get your original contributions at any time tax/penality free.

    Unless the rules have changed you better be 59 1/2 years old before withdrawing that money tax or penalty free. However there are certain exclusions such as up to $10,000 towards the purchase of your first house or disability cases. Otherwise early withdraw carries a pretty hefty penalty plus taxes incurred as ordinary income. At least that is how it was two years ago when I was NASD licensed.
     
  10. Mowmyyard

    Mowmyyard LawnSite Member
    Posts: 28

    Brent, read the quote, Contributions not earnings can be taken out at any time. That does make a difference
     

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