financing equipment. is it wrong?

Discussion in 'Lawn Mowing' started by jarroo's lawncare, Aug 31, 2006.

  1. jarroo's lawncare

    jarroo's lawncare LawnSite Member
    Messages: 116

    i was just wondering if financing equipment is the wrong thing to do. a lot of dealers have some really good payment plans out there and if you can't pay a mower off in one season there's something wrong. i think it would be fine as long as you didn't get in over your head.
  2. tacoma200

    tacoma200 LawnSite Fanatic
    Messages: 5,426

    There are not many busisnesses that don't borrow money to get started. I have never heard anyone much questioning this. There is certainly nothing wrong with financing equipment. There are millions of Americans financing new cars, plasma TV's, motor cycles, furniture, you name it and none of it makes them any money. I consider equipment and tools an investment and with a good head on your shoulders it will make you money, not cost you money. That doesn't mean to go out and spend unwisely. It doesn't take too many lawns to make a mower payment but you have to be disciplined. I've been borrowing money since I was about 14 and have never been late on a payment as far as I know. I'm 43 now.
  3. dcondon

    dcondon LawnSite Silver Member
    Messages: 2,246

    Go ahead and do it. I can bet over 75% of the members on here do it all the time. In a sad way thats about all you can do these days unless you are loaded. Just find the smallest % rate and do it.:waving:
  4. fulano

    fulano LawnSite Senior Member
    Messages: 319

    Compare credit from a lawn mower manufacturer let's say 5% for the next three years and the mower is $6000. That is a ton of money.
    You may be able to get a loan from a bank at a little higher interest but save big on the purchase of a used mower like 1/2.
    You would have to compare the #'s and look at your situation, but why buy new if you can find a good used machine which will do the same thing for less.
  5. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Messages: 4,899

    Finacing equipment is only Ok if you have the work for it and you can still make a profit after you make the payments. Otherwise your working for you equipment instead of having your equipment work for you. Are you finacing to grow or to continue as you are? theres a lot of questions that you need to ask yourself before finacing a mower cause you can make the payment.
  6. Idealtim

    Idealtim LawnSite Senior Member
    Messages: 939

    It's only okay if you need that equipment for your bussiness. You need to have a lot of work in order for it to pay for itself.
  7. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Messages: 2,955

    i used a at&t card to get my trailer at lowes and a hd card to get lawn equipment to startup. less then $5000 to get me up and running. 2 seasons so far and i only have 92.7 hours on my L118 mower.
  8. bigjeeping

    bigjeeping LawnSite Senior Member
    Messages: 903

    If you know you'll make enough money in the season to pay it off see what type of short term 0% offers they have.

    Exmark had 6-months 0% APR and I had enough money to pay it off after the first month, but I waited until the 6 months ran up. I like interest-free loans :weightlifter:
  9. jarroo's lawncare

    jarroo's lawncare LawnSite Member
    Messages: 116

    i was just wondering what your guys take on this was. i have been financing equipment to get started. last year i financed my viking hydro, i always make sure to get the one year no payments no interest when i do. i payed it off in just a couple of months. this year i bought my lazer z put in a few commercial bids got them and picked up around 30 residential accounts. i have the money to pay it off right now. i think i owe about 7500 dollars on it. the best thing is the season isnt over so there is some more money to be made. also my commercial accounts will pay me through march of next year. i am 21 and put in over 40 hours a week at a regular job and manage to get in 30 plus hours a week mowing.
  10. tacoma200

    tacoma200 LawnSite Fanatic
    Messages: 5,426

    I often wait till they have a 12 months same as cash deal. I finance the equipment through them and then refinance at 11 1/2 months which eliminates the first years interest. I get a personal loan at the bank. And pay it down very fast. I end up paying very little interest.

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