what kind of mower should i get?

Discussion in 'Tractors' started by brycesepp, Oct 8, 2012.

  1. brycesepp

    brycesepp LawnSite Member
    Posts: 111

    i've been looking at my local dealer at some scags, there is a tiger cat 48" there for 7500 dollars. and they're offering 0% financing for 48 months, payment would be 165 dollars a month roughly.. everyone tells me not to finance but i bring in about 1500 dollars a month just from mowing and i'm only growing, and i have no bills other then my gas and insurance.. is it a bad idea?
     
  2. jdo150

    jdo150 LawnSite Member
    Posts: 74

    My feeling is if the rate is good which 0% is and you know that you can swing the payment all year even in winter without any problem then you don't have to shell out the whole nut at one time and can have the money for unexpected things. The only time I think financing is bad is when there is a terrible interest rate and you will spend a lot more money in the long run.
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  3. brycesepp

    brycesepp LawnSite Member
    Posts: 111

    Yeah that's what i was thinking, thanks for the advice.
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  4. sgbotsford

    sgbotsford LawnSite Member
    Posts: 107

    There is no free lunch. If the claim is zero interest, then the interest is built into the price. If the going real interest is 5% then roughly 10% of the price is interest. (Interest rate * years * 1/2) (This is the simple linear interest model. I'm not going to do logrithyms in my head to do it right.)


    Small equipment and vehicles have terrible interest rates, because of their steep depreciation and portable nature. You are probably better off to pay cash, and set up a line of credit based on either your business or home real estate.

    The dealer almost certainly discounts your paper to a bank or loan company. That is, he will sell your 165/month x 4 years to some company for less than 7,500. Ask him candidly what it costs him. Then offer him $50 over that cash sale.

    The ONLY time to not pay cash:

    * You really cannot afford it.
    * It generates far more revenue than the payments.
    * You suspect a rat in the wood pile, and you want the threat of witholding payment as possible future leverage.

    Always arrange your finances so that whatever debt you have is at the lowest possible rate of interest.
     
  5. lalllc

    lalllc LawnSite Member
    Posts: 68

    I would say, if its what you want and you can make payments. Go for it. However if you miss one payment, You Will end up with a higher payment. Thats how they all work. I would say buy it if, you have no less than 6 months worth of payments in your savings. I bought all my mowers on payments and when I get a big job or I have extra I pay more if I can. One mower I payed 5 months of payments then I landed a big job at that time, I then payed it off. Nothing is better than building good credit.
     
  6. brycesepp

    brycesepp LawnSite Member
    Posts: 111

    any one wanna help me out? my friend has a Toro Z master he wants to sell me, i'm not sure of the year but it's 52' with 700 hrs on it, it's got the bagger on it with vacuum and everything.. He wants 4,000? To much? Good deal? I don't know much about toros..
     

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