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What about leasing mowers?

Discussion in 'Rental Equipment' started by JABBERS, Feb 18, 2008.

  1. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    The only way I've heard of this being done is there exist two companies under the same corporation and one company leases to the other... I'm not sure exactly how it works but your accountant can likely tell you more.
     
  2. MJB

    MJB LawnSite Silver Member
    from Wa
    Posts: 2,869

    Correction .... "Advance Acceptance" Look them up on the net.
     
  3. NJemerald

    NJemerald LawnSite Member
    from NJ
    Posts: 121

    Question for those of you who have leased mowers...
    If you need to have the mower repaired for some reason while under lease... Do you need to take to to the place you leased/bought it from or will any local dealer/repair shop be able to work on it?

    Thanks,
    NJemerald
     
  4. MJB

    MJB LawnSite Silver Member
    from Wa
    Posts: 2,869

    I would ask the dealer you lease it from. But in my case I have always took it back to the dealer I purchased it from, or any other dealer that carries that line of equipment. I've always bought from dealers that have a service dept too. In some cases like my Exmark dealer stopped carrying Exmark and I had to find the new dealer that carried them. Really it's no different than when you purchase it outright.
     
  5. jaybird24

    jaybird24 LawnSite Senior Member
    from midwest
    Posts: 623

    Like MJB we have leased mowers with the $1 buyout after 24 or 36 months. I can't remember the company, but our dealer set us up so ask ask your dealer. It worked out well, the payments were actually lower than financing plus the $1 buyout. The straight write off was nice too.
     
  6. DLCS

    DLCS LawnSite Platinum Member
    Posts: 4,374

    Many advantages to leasing, talk to your accountant. Lease payments are 100% write off. Leasing agreements do not show up on your credit report. Lease payments can be lower than financing. Most leases you don't have to give it back in the end of the agreement, basically you lease to own but are able to write off the entire lease payment. You can elect to skip like 3 payments a year during your slow times but you do end up making those payments in the end. You just defer them. You can lease anything that you want. Advance Acceptance is one company that i have used before but don't recomend them. They more than once "lost" my payment. Try going through the equipment manufacturer first, like john Deere credit or you can go through a 3rd party like Sheffield. I believe Gravely/ Ariens has their own too.
     
  7. bullethead

    bullethead LawnSite Senior Member
    from Texas
    Posts: 273

    If leasing works better for you from a cashflow perspective, then pursue it.

    If you are worried about "write-offs" I am willing to bet this is a silly consideration for most people on here. Look up Section 179 deductions, part of your depreciation schedule Form 4562, - basically you can write-off up to $125,000 of your annual equipment purchases if you have the income to offset it. You don't have to schedule it and depreciate it.
     

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