Skid Steer Financing

Discussion in 'Heavy Equipment & Pavement' started by AWJ Services, Aug 26, 2005.

  1. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Messages: 4,281

    Was looking at purchasing a used Skid Steer and found one that had 25 hours and almost new.It was 34000 so it was saving me over 7000 dollars from a new one.
    Called upteen lease companies and was quoted anywhere from 780 to 850 for a 60 month term.
    Called back today too work up my payments on a new one at 41000 and with a small down payment it was 750.00 amonth for 60 months.
    I am new too buying equipment .
    So I will ask.
    Why will not someone do a loan at a resonable rate.
    If I put the same small down payment and at 7% my payments would be
    only 650.00

    I understand all tax benefits of a lease and this is why they are telling me it is more.

    Just wondering.

    UNISCAPER LawnSite Bronze Member
    Messages: 1,426

    Cat finance...0 down, 0% interest. 3 year term, payments of $1215 a month. In 3 years the machine is traded and upgraded to a C series. We will get 30K and change for the trade, finance 20K at that time.

    Seems to me your term would be better if you took a 3 year note.
  3. Squizzy246B

    Squizzy246B LawnSite Senior Member
    Messages: 837

    G,day AWJ,

    I know it may limit your options but here in Australia the banks just couldn't match Cat Finance. I couldn't even borrow against my house at the rate Cat gave me. I took the term over 5 years and make payments to finalise in 3 with a good resale for a deposit for the next machine.

    Regards from Perth
  4. Tigerotor77W

    Tigerotor77W LawnSite Bronze Member
    from Germany
    Messages: 1,892

    Hey Squizzy! Welcome to the boards... it's great to know our reach extends to Australia. Impressive.

    Hope you enjoy your time here.
  5. Squizzy246B

    Squizzy246B LawnSite Senior Member
    Messages: 837

    BobcatS250, Thanks for the welcome. The Boards look interesting and there is a deal of information here which is very useful.

    Regards from Perth
  6. iowacatman

    iowacatman LawnSite Member
    Messages: 93

    The tax benefits of a lease are really no better than straight-line depreciation (as long as you trade at the end of the depreciation period).

    Equipment manufacturers will fund a rate (buy down the rate) in order to attract business. It is always best to take this rate since it is generally cheaper than the cost of money, then your money can be better used in other places in your company.

    Besides, the rate the OEM is offering is like an additional discount on your purchase.

    There are lease company's that will give you a decent residual (20%) on a skid steer loader over 5 years. But their interest rate is generally going to be a percent or two over what you can get at the bank. By the time you add in fees and the interest, your payment is up near where you can finance the machine.

    I hope this helps.
  7. jtracy

    jtracy LawnSite Member
    Messages: 6

    I represent a Finance and Lease Company. Our rates are competative and we do not report to the credit bureau. We are also application only up 75,000 very easy and convienant to do business with us any questions or if you would like an application email me at Good Luck!

    UNISCAPER LawnSite Bronze Member
    Messages: 1,426

    Why is it that when outside leasing firms come into play, and not all I'm sure, that they act like they are doing you a great service by working with you. then you look at the terms say on a trailer (as I did a few years ago) and the trailer costs $5K. By the end of the 3 years lease terms, you paid $8K. I thought since it was through the dealer I would just check it out.

    so, obviously y reply was that if they wanted to "help" me, they had best lower their numbers. I offered them a point over prime, which would have come to I think a total of $780.00 in finance costs, which in all honesty is fair to both parties. I understand that anyone in business should make money, and borrowing money has a cost associated with it. but that I felt was rape artistry. And there are alot of lease companies out there like that.

    The ones on the most likely to rape you list are those who send you that fake credit card with a pre approved amount on them. tey are going to do you a service by giving you $75,000.00 to purchase equipment. And they will charge you up to double what you paid for the machine to help you in the process. Those guys should not even be allowed to make the offers.
  9. jtracy

    jtracy LawnSite Member
    Messages: 6

    I agree with you and not all leasing companies work the same. We offer some things that most banks wont like no money down, skip payments so your payments are scheduled only when you are making the most money, no reporting to credit bureau, and although are rates are slighlty higher we take on a lot more risk. We also will fund 75,000 on an application only no financials or income statements. We do not offer credit cards we are a true leasing company and FDIC regulated.
  10. thepawnshop

    thepawnshop LawnSite Senior Member
    Messages: 387


    I am buying a 2001 Hitachi EX160 with 3,000 hours for 65k. I plan on only financing 60k. What can you do for me? I would like to know rates for both 48 and 60 months with both $1 buyout or Fair Market Value or 10% residual if possible.

    Also, when solicitong for business, it wouldn't hurt for you to put at least your name in your signature as well as your company. That way we can check you out before trading personal info.

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