how much to take a loan on a mower?

Discussion in 'Lawn Mowing' started by lawn crafters, Oct 23, 2008.

  1. lawn crafters

    lawn crafters LawnSite Senior Member
    from RI
    Messages: 440

    i am going to get a 48 inch navigator but my question is how much a month am i looking at to pay for it?
  2. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    The cost of the mower over the number of payments, pretty much.
    And yes, to the best of my knowledge we are allowed to use calculators.
  3. IN2MOWN

    IN2MOWN LawnSite Platinum Member
    Messages: 4,993

    Probably best to call your lender and ask them...
  4. kaferhaus

    kaferhaus LawnSite Bronze Member
    Messages: 1,444

    Take the out the door price of the machine. divide the total cost by the number of months financed, then divide the annual percentage rate by 12. multiply that number as 1.XX% times the monthly amount


    Amount financed = 7,500.00 at 11% (if you're lucky) for 48 months

    Loan Summary
    $193.84 monthly payment
    Monthly Principal & Interest $9,304.39
    Total of 48 Payments

    Total Interest Paid Sep, 2012
    Pay-off Date
  5. MOturkey

    MOturkey LawnSite Silver Member
    Messages: 2,781

    When I purchased my new Gravely last year, I took advantage of the "6 months same as cash, 1.9% interest" deal, which seems to be one of the more common promotions.

    I was aware that the payment would be 2% of the balance, but didn't read the fine print in that the payment is based on the REMAINING BALANCE rather than the INITIAL BALANCE. In other words, your payment is based on what you owe at the end of the "6 month same as cash" period, rather than on the initial amount you borrowed, as in most loans. This made little difference, in my situation, as I made a large down-payment at the time of the purchase, but this could be a huge advantage to someone wanting to buy a new mower with a limited monthly budget.

    If you buy your mower at the first of the mowing season, and pay extra during the peak of the season, you can end up with miniscule payment going into the slack season.

    Let's say you buy a mower for $10,000 on April 1. You don't have to make a payment for 6 months, or around the 1st of October, and the money borrowed isn't costing you anything. If you let the amount roll over into payments your payment will be $200 a month, or 2% of the remaining balance. However, if you are able to say, pay $1,000 each month with the extra income during the mowing season, you will only make a payment based on a a remaining balance of $4,000, making the payment as you go into the off season only $80 a month.

    The 1.9% finance charge is neglible, so the next spring, you will have accumulated little in additional debt, even if you make only the minimum payment, and can concentrate on eliminating most or all of the remaining debt during the peak season.

    This, to me, is absolutely the best plan under which to purchase new equipment for the average person who can't pay cash. If you can pay it off in 6 months, terrific. If not, the debt can be reduced enough to make the payment less painful through the winter. Good luck. Neill
  6. lawnprosteveo

    lawnprosteveo LawnSite Bronze Member
    from Tulsa
    Messages: 1,930

    When you put it that makes you wanna pay CASH!!! I hate payments and I hate debt. To me, debt is modern day slavery (self-inflicted).payup
  7. VisionsLandscapes

    VisionsLandscapes LawnSite Member
    Messages: 117

    just pay cash for it if you can afford to, saves you tons i nthe end.
  8. DuallyVette

    DuallyVette LawnSite Gold Member
    Messages: 3,867

    Google "loan calculator" on

    get several credit cards that offer a year or two at 0% finance. Don't use the card for anything else. When the free time is over...transfer the balance to the next card. ALWAYS pay on time, or you'll get the 30% default rate.:)
  9. P.Services

    P.Services LawnSite Fanatic
    Messages: 6,319

    my new favroite website. (second to lawnsite of course) thanks!!
  10. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Messages: 3,335

    When I got my new Grasshopper this fall, I got a 5 year loan for $9,000. Payments on that are roughly $200 a month. For the Navigator, I would figure $250 a month on a 5 year loan. Also, my interest rate was like 6% or so I think.

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