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View Full Version : How to get that commercial mower you really cant afford


outerelements
03-13-2009, 07:10 PM
So, after buying and trading several different mowers this week, I was able to purchase a mint condition SCAG 61" turf tiger today with NO cash in hand.

How? First, I bought a toro residential mower for 1,000 off craigslist. The dealer gave me 1,500 for it as a trade in towards the SCAG (profit $500). Next, I bought a cub cadet residential (rzt) for $700; dealer gave me 1,250 for it (profit $550). Finally, I purchased a lazer z yesterday for 3,000. Dealer gave me 3,300 today (profit $300).

Total for SCAG: 6,000
Total on trade ins: 6,050

Since no cash was used, there was NO tax. I have a credit balance for $50.00

The morale of this story- THERE ARE GREAT DEALS ON MOWERS FROM RESIDENTIAL USERS OFF CRAIGSLIST... think how these deals can benefit YOU!

Sean70
03-13-2009, 07:28 PM
Hi, I was wondering how you knew you could obtain more from the dealer.
Thanks,
Sean

Mike's LawnCare Landscape
03-13-2009, 08:33 PM
So, after buying and trading several different mowers this week, I was able to purchase a mint condition SCAG 61" turf tiger today with NO cash in hand.

How? First, I bought a toro residential mower for 1,000 off craigslist. The dealer gave me 1,500 for it as a trade in towards the SCAG (profit $500). Next, I bought a cub cadet residential (rzt) for $700; dealer gave me 1,250 for it (profit $550). Finally, I purchased a lazer z yesterday for 3,000. Dealer gave me 3,300 today (profit $300).

Total for SCAG: 6,000
Total on trade ins: 6,050

Since no cash was used, there was NO tax. I have a credit balance for $50.00

The morale of this story- THERE ARE GREAT DEALS ON MOWERS FROM RESIDENTIAL USERS OFF CRAIGSLIST... think how these deals can benefit YOU!

lol some one is full off it .
1st
there price for the mower then sales tax.
2nd
your trade in is = as cash
3rd
no dealer that sells commercial will buy home owner stuff at that price.
4th
no dealer in there mind will pay $1200 for a used cub cadet residential (rzt)
my shop guys have one for sale with a bagger for $1000 and offered it to me for $900 if I needed it .
5th
if you had $4700 cash on hand just go down to the dealership and talk hard ball.
6th
Why buy home owner stuff and spend 3 days to buy and pick the stuff up and then trade it to the dealer :eek::eek::eek:.

Steve
03-14-2009, 02:31 AM
I am sure there are always great deals out there.

This is a very interesting post! I am really amazed you were able to do all this!

Did you have to do any repairs or anything to the mowers before you traded them in? Have you ever done this before? What got you to think to do this?

picframer
03-14-2009, 03:56 AM
Glad to hear you have a mower you really wanted and was able to get it. Personally I have two thoughts, the dealer had a big mark up on the scag & you really lucked out on the trade in value as the dealers I do business with would have never matched or even come close to what you received, this is great for you and have fun!

outerelements
03-14-2009, 09:09 AM
lol some one is full off it .
1st
there price for the mower then sales tax.
2nd
your trade in is = as cash
3rd
no dealer that sells commercial will buy home owner stuff at that price.
4th
no dealer in there mind will pay $1200 for a used cub cadet residential (rzt)
my shop guys have one for sale with a bagger for $1000 and offered it to me for $900 if I needed it .
5th
if you had $4700 cash on hand just go down to the dealership and talk hard ball.
6th
Why buy home owner stuff and spend 3 days to buy and pick the stuff up and then trade it to the dealer :eek::eek::eek:.

well honestly before you run your mouth and talking about this and that..consider this, NOT ALL DEALERS ARE THE SAME!!! The dealer I used was out of Philly-maybe his practices are different than someone from "bumble-fu**", missouri**-for example.. AND A TRADE-IN IS A VALUE AND CANNOT BE TAXED

outerelements
03-14-2009, 09:12 AM
Hi, I was wondering how you knew you could obtain more from the dealer.
Thanks,
Sean

Let me say this, this entire process took 1 week. I gave the dealer names, models, hours, condition, etc. He told me what he would give. In the case of the laer, he actually gave me less than what he originally said... Needless to say, NOT ALL dealers are as smart as some may think...

outerelements
03-14-2009, 09:15 AM
I am sure there are always great deals out there.

This is a very interesting post! I am really amazed you were able to do all this!

Did you have to do any repairs or anything to the mowers before you traded them in? Have you ever done this before? What got you to think to do this?

Hey Steve,

The only thing that I did to these mowers was clean them up; no mechanical work of any kind.

This idea came to me from my bargain-hunting, e-bay trading, penny-pinching ex-wife... Who knew? She actually did serve a beneficial purpose!

outerelements
03-14-2009, 09:18 AM
Glad to hear you have a mower you really wanted and was able to get it. Personally I have two thoughts, the dealer had a big mark up on the scag & you really lucked out on the trade in value as the dealers I do business with would have never matched or even come close to what you received, this is great for you and have fun!

The idea behind this is that home-owners who have machines in somewhat good condition are much easier to bargain with than a dealer... The couple I bought the toro from had a for sale sign in their yard and they kept saying they needed to get rid of that as well a garage full of other stuff asap... Foreclosure perhaps? Whatever the case may be, THERE ARE DEALS OUT THERE. In this case, I benefited by getting a another turf tiger, for a recent start-up with little-to-no cash, they can get a cheap zero-turn.....

SuperiorPower
03-14-2009, 12:23 PM
Hmmmm, it so happens that I am one of those Shops in "bumble-fu**", missouri". First, I don't appreciate the talk, but then again, I understand it does not matter where you are from, other folks who think different than us seem to be "stupid" in our mind. Example, if you are from the city then us country folk may seem to be "stupid" or "simple" as you try to indicate.

But the bottom line is, Mike is exactly right. Here in Missouri it does not matter whether or not it was a trade in or not, whether money was exchanged or not, the dealer still has to charge tax. PERIOD. Whether a dealer is selling new or used equipment, he has to charge sales tax. Again, PERIOD. And before you mouth us, understand that we are not the ones making the tax laws so keep it to yourself. Also consider this, maybe the dealer you are working with is not being honest? Either way, the tax issue aside, more than likely you just had a great combo there (and CONGRATS!) and caught a case where the dealer knew one or more of the following (or were ripped off ((oops!))):

A) The dealer mark up was significant enough that if he was trading all this in, he was still making profit. I have to ask, did you take all the mowers in at the same time or did you take one in at a time and ask for a credit for that amount? Is the reason he paid less for the last one because he would not have been making ANY money on the new mower?

B) The dealer knew that most of the "profit" he was giving you was only offsetting his profit. Kinda like a car dealer will give X amount for your trade in, but charge you more for the car you are buying. Like someone else said, If you would have walked in there with perhaps $4700 cash, they would have given you the same mower.....



Also remember, you did spend $4700 for the mower since this is the grand total of what you paid for the other mowers. And now the dealer has 3 machines he can make profit from. But if you are happy, then all is good.....

picframer
03-14-2009, 03:00 PM
Again, I am honestly pleased you have the mower you want, I hope it brings you hundreds of hours of service and I am sure it will.

I might encourage you to run your scenario by an accountant in your area, I understand fully we are in two different countries and the tax laws are night and day. Here your company would be taxed a Capital Gain based on what you paid and what you received for each mower (Cash does not have to exchange hands, in fact look at it this way, when you buy and sell stock for example, cash is never in your hands), plus sales tax on the trade which would be offset by tax charged for your services.

There may not be any sales tax in your case however I would be very surprised if there is no capital gain, I did work in International taxation 20 years ago, at that time, if the IRS were to audit your company, I do know it would be taxable, but like all things, rules change.

Good luck buddy with the new equipment!

Steve
03-14-2009, 03:15 PM
Is it possible when you trade in a mower like you did that you can get store credit with a value higher than cash when you trade it in? Does that ever happen and would anyone want that if they ultimately intended to use that credit to buy another mower from that dealership?

outerelements
03-14-2009, 05:41 PM
Again, I am honestly pleased you have the mower you want, I hope it brings you hundreds of hours of service and I am sure it will.

I might encourage you to run your scenario by an accountant in your area, I understand fully we are in two different countries and the tax laws are night and day. Here your company would be taxed a Capital Gain based on what you paid and what you received for each mower (Cash does not have to exchange hands, in fact look at it this way, when you buy and sell stock for example, cash is never in your hands), plus sales tax on the trade which would be offset by tax charged for your services.

There may not be any sales tax in your case however I would be very surprised if there is no capital gain, I did work in International taxation 20 years ago, at that time, if the IRS were to audit your company, I do know it would be taxable, but like all things, rules change.

Good luck buddy with the new equipment!

look, forget I even mentioned this. I have no idea how or why this gotten so off-topic, but it has. I guess I dealt with a shady dealer who could care less about tax laws. Afterall, this is Philadelphia- anything and I MEAN ANYTHING GOES!!!! I didnt budget enough to pay for a 6K SCAG, so I played around a little and was able to get it..HOORAY FOR ME!!!!

outerelements
03-14-2009, 05:43 PM
Hmmmm, it so happens that I am one of those Shops in "bumble-fu**", missouri". First, I don't appreciate the talk, but then again, I understand it does not matter where you are from, other folks who think different than us seem to be "stupid" in our mind. Example, if you are from the city then us country folk may seem to be "stupid" or "simple" as you try to indicate.

But the bottom line is, Mike is exactly right. Here in Missouri it does not matter whether or not it was a trade in or not, whether money was exchanged or not, the dealer still has to charge tax. PERIOD. Whether a dealer is selling new or used equipment, he has to charge sales tax. Again, PERIOD. And before you mouth us, understand that we are not the ones making the tax laws so keep it to yourself. Also consider this, maybe the dealer you are working with is not being honest? Either way, the tax issue aside, more than likely you just had a great combo there (and CONGRATS!) and caught a case where the dealer knew one or more of the following (or were ripped off ((oops!))):

A) The dealer mark up was significant enough that if he was trading all this in, he was still making profit. I have to ask, did you take all the mowers in at the same time or did you take one in at a time and ask for a credit for that amount? Is the reason he paid less for the last one because he would not have been making ANY money on the new mower?

B) The dealer knew that most of the "profit" he was giving you was only offsetting his profit. Kinda like a car dealer will give X amount for your trade in, but charge you more for the car you are buying. Like someone else said, If you would have walked in there with perhaps $4700 cash, they would have given you the same mower.....



Also remember, you did spend $4700 for the mower since this is the grand total of what you paid for the other mowers. And now the dealer has 3 machines he can make profit from. But if you are happy, then all is good.....

No offense to you or Missouri...I guess I should have said Kentucky as an example instead.. And clearly, the dealer is going to profit nicely on each and every mower I traded in...that's just how these deals work....

SuperiorPower
03-14-2009, 08:40 PM
Is it possible when you trade in a mower like you did that you can get store credit with a value higher than cash when you trade it in? Does that ever happen and would anyone want that if they ultimately intended to use that credit to buy another mower from that dealership?

Once again, car dealers come to mind.....