Mower Financing Questions

Discussion in 'Lawn Mowing' started by kc2006, Oct 8, 2005.

  1. kc2006

    kc2006 LawnSite Silver Member
    Messages: 2,443

    Got a quick question since the dealers can't fully answer my question.

    This concerns the 12 months no payment no interest that exmark and a few other companies have going on now. I want to know, what happens if you don't fully pay off the mower in those 12 months? Some dealers say the payments start and interest is on what you still owe, some dealers say you have to pay all the back interest that was originally there from day one through those 12 months.

    Could someone help explain this to me? :dizzy:
  2. 1MajorTom

    1MajorTom Former Moderator
    Messages: 6,073

    Interest will be assessed from date of purchase at an annual variable rate of Prome + 13.95%. Interest will be waived if paid in full prior to end of 12-months deferred period.

    That is from eXmark's site, and I believe it to mean if you do not pay off the machine in full by the 12 months, then you need to pay back the interest from the very beginning.
  3. tinman

    tinman LawnSite Bronze Member
    from ga
    Messages: 1,346

    Jodi is correct. With Sheffield, my interest did not accrue...meaning I only owed interest on the remaining balance
  4. kc2006

    kc2006 LawnSite Silver Member
    Messages: 2,443

    Ok. I'm trying to decide what to go with. One dealer goes with a local bank that has 5% interest only and 60 month payment plan, and no penalties for paying the loan off early. I kind of like this because the payment is only around 170. Not that I'd have the loan for 5 years but if something happens and I need extra money I won't have to worry about a 300+ dollar a month payment. The other dealer offers financing through exmark and I'm debating going with that 12 months no payment set up. I could probably pay the mower off by then but you never know what can arise in that time.
  5. topdog

    topdog LawnSite Member
    from indiana
    Messages: 205

    i just bought a 31 hp 60 exmark this week, and done it with my bank.
    i would much rather go with a payment i am comfortable with than trying to pay a hugh payment in jan or feb.

    just my 2 cents
  6. kc2006

    kc2006 LawnSite Silver Member
    Messages: 2,443

    One last question :D

    The dealer that goes with a local bank, they said I need insurance on the mower while the loan is open. Does this mean going through the business insurance or does the bank offer somekind of insurance? No other dealer has mentioned this before, so it got me wondering.
  7. topdog

    topdog LawnSite Member
    from indiana
    Messages: 205

    insurance on the mower itself
  8. Precision

    Precision LawnSite Silver Member
    Messages: 2,995

    that would be a floater / rider addendum to your GL policy to cover listed equipment. I have that on my Gravely Pm260 and my Scag supercat 36 and some of my other expensive stuff. Total for $30,000 of coverage is around $250 annually.
  9. LwnmwrMan22

    LwnmwrMan22 LawnSite Platinum Member
    Messages: 4,373

    Go through Exmark now, with the 0% for 12 months. That gets you until October of next year.

    Work your butt off, get as much paid off on the mower at you can the rest of this year, and then next summer.

    About 2 weeks before the loan is due through Exmark, go get a loan for the rest, and pay off Exmark's loan.

    This is how you can use 0% interest to your advantage. You're not paying ANY interest on the money that you borrowed until next October.

    First thing you may want to do, is check with your local banker, that it's okay that you roll the balance over come next fall if you haven't already paid the mower off.

    ALWAYS use ANY 0% option first to it's fullest extent if you're going to finance anything, IMO.
  10. nelbuts

    nelbuts LawnSite Bronze Member
    from SW, FL
    Messages: 1,053

    Scag had a program with no payments no interest till April 1st 2006.

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