Financing Equipment

Discussion in 'Starting a Lawn Care Business' started by zacher, Jun 22, 2013.

  1. zacher

    zacher LawnSite Member
    Messages: 67

    I am at a crossroads right now...

    I have a couple residential lawn maintenance accounts that I maintain right now with a toro push, I have a stick trimmer and a blower...I just edge with the stick trimmer.. I sold all my equipment and accounts last year so now I am stuck with what I kept for my own yard...I started back into it last month (late in the season I know) but instantly grabbed 4 old accounts back and their contracted most of my business is coming from downed tree and brush jobs and small installs right now...I have turned down a couple commercial businesses calling because time vs. money would not add up with the equipment available. I am a full-time student athlete at a university here so with school starting back up in the fall my classes are in a good position where I could work all Tue and Thurs and Fri and Wednesday mornings...

    Heres my question how many of yall have invested in an equipment package...I have two options...their both 0% down 0% financing for 48 months (like most mowers)...I am not talking about a mower I am talking a package...absolutely everything I would need including a zero turn and two 21" push package is $130 a month another is $188...

    Has anyone financed before and to this amount and has it paid off? I enjoy paying cash and owning equipment straight out but I have had bad luck in the past dropping $1500 on a lemon mower and still being out other pieces. I just cannot grow any further than right where I am at without the equipment to do the jobs faster and of course the cut look better.

    Any input is greatly appreciated...I am caught with $1000 and an older 5x8 trailer thats a dump trailer but the dump doesnt work..the packages come with the 6x10 trailers as well...So I could just buy a walk behind with what I have..which could end up more time and money invested or get the package with a new Husqvarna mower... By the way my accounts right now already would pay off all expenses for the equipment and gas...I wouldn't be making money for myself until I start adding accounts. I forgot to mention my scholarship gives me enough money to live off of for personal expenses.

    Basically either finance and grow and be committed completely or invest and run risk of still not being able to get done and grow as I would like.
  2. inzane

    inzane LawnSite Silver Member
    Messages: 2,478

    I wouldnt finance if you are a full time student. You may regret it later.
  3. OakNut

    OakNut LawnSite Platinum Member
    Messages: 4,104

    Can I assume these "packages" are used equipment and the dealer is offering this "zero percent" financing?

    I can't see how you can pay as little as $130/mo for TWO years and get "all that stuff".
    I'm paying $140+/mo for a 36" WB purchased new at 0% for THREE years.

    I don't get it.
  4. zacher

    zacher LawnSite Member
    Messages: 67

    No all brand new equipment they just have a surplus of the mowers so you can only pick the package with one of the two mowers....And 48 months is 4 years...The package for $138 a month is Zero Turn, 2 21" Mowers, Blower, 2 Stick Trimmers and an Edger, Hedge Trimmer 6x10 trailer...Enough for a whole new crew..I am really regretting selling my old rig now and I hate to finance but its a really good deal
  5. OakNut

    OakNut LawnSite Platinum Member
    Messages: 4,104

    :eek: I never wuz vury good at maff.

  6. zacher

    zacher LawnSite Member
    Messages: 67

    I though the Georgia Education system was bad!! lol :hammerhead:
  7. goel

    goel LawnSite Member
    Messages: 73

    Go with your first instinct. What does your gut say?

    We can offer advice but you have to ultimately pay for the equipment. Is this what you want to be when you grow up? I sure did not expect to be where I am now.
    Posted via Mobile Device
  8. zacher

    zacher LawnSite Member
    Messages: 67

    Everything I think is saying go for it...just advice of my wife has been a little different. I know 4 years (hopefully less if I can pay off quicker) is a big investment...

    But I've been in landscaping with my business for about 5 years now on and off through those periods of time. I love it. Truthfully even with my college degree in exercise science I would love to be able to have a good living with my company...I think its more of a sense of accomplishment thing for me...and not sitting in a desk all day.
  9. StockmanLawnscape

    StockmanLawnscape LawnSite Member
    Messages: 131

    Just be careful with the quality of this equipment. Your talking around $6,600 for everything. So therefore I assume that everything is residential or very, very low end commercial. If you want to build into a larger company, you have to think if this equipment will even last the next 4 years. You can't even buy a brand new toro, exmark, scag, gravely, etc. zero turn for under your total price for everything.

    I don't know the ins and outs of your business, so I can't make the decision. I just know that we try to never buy anything that can wear out within a year or two. Durability is a large factor to consider before making any purchase.

    However, if you do decide to finance, you picked the right way to do it, 0%.

    Good Luck!
  10. zacher

    zacher LawnSite Member
    Messages: 67

    But yes around 6600 for the cheaper mower and like 8999 for the package with the better mower

    That's the only other thing I'm worried about the package is a Husqvarna package.. Their best blower and "commercial" stick trimmers and edger which I'm not worried about because if need be I can always buy handhelds.. My main concern is the zero turn its a Husqvarna P-ZT 48 for the more expensive package.. I don't know if anyone knows much about this mower..everything I've read has been overall positive.

    It would also be nice having a bigger trailer which is made surprisingly by a reputable local trailer dealer so that alone is worth some money..

    In all honesty to me I don't know how the company is making any money they only have 3 packages total no matter how you break it down my guess is they overstocked.. I think just seeing the figures alone and knowing the deal is what's really pumping me up for this thing so much I think I need to take a step back..

    Honestly right now as stated I am trying to build the maintenance side of my business back up and would love to start doing so its just hard with a push mower to do so.. Time and money don't add up. But I do them because info want to expand again one day (hopefully very soon).. I've been doing mainly tree work but then again we just had a storm roll through so I feel like I lucked out with that as well.
    Posted via Mobile Device

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