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Outdoor Power Equipment Discussion, Repairs, Buy or Sell Outdoor power equipment discussions. Questions on commercial lawn mowers, lawn mower, mower parts, lawn tractors, engines, edgers, trimmers, pole saws, aerators, hydro seeders, snow plows, chain saws, stump grinders, trucks and trailers?

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Outdoor Power Equipment Discussion, Repairs, Buy or Sell

Outdoor power equipment discussions. Questions on commercial lawn mowers, lawn mower, mower parts, lawn tractors, engines, edgers, trimmers, pole saws, aerators, hydro seeders, snow plows, chain saws, stump grinders, trucks and trailers?
View Poll Results: Which type of mower do you use?
Commercial Grade Mower 10 66.67%
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  #11  
Old 07-20-2008, 03:38 PM
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I'm all commercial, The only way to go in the long run. But you guys already knew that about me...
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  #12  
Old 07-20-2008, 04:46 PM
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Sherman,

Would there be a tipping point interest rate that would make you finance a larger amount of a truck or piece of equipment?

I do wonder about this because this is something I think would be a risk vs. reward issue.

I am not sure at which interest rate does the scale tip one side or the other but this makes me think of insurance in a sense.

Legit lawn care business owners buy insurance because they may need to legally and they know the risk vs reward is not in their favor to self insure.

I wonder if financing vs not financing is similar to insuring vs. self insuring.


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Old 07-20-2008, 06:35 PM
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Originally Posted by Steve View Post
Sherman,

Would there be a tipping point interest rate that would make you finance a larger amount of a truck or piece of equipment?

I do wonder about this because this is something I think would be a risk vs. reward issue.

I am not sure at which interest rate does the scale tip one side or the other but this makes me think of insurance in a sense.

Legit lawn care business owners buy insurance because they may need to legally and they know the risk vs reward is not in their favor to self insure.

I wonder if financing vs not financing is similar to insuring vs. self insuring.


What are your thoughts?
Steve
Good Question.
The way i look at it is, ok, say i buy my new mower on time, then i make my payments evry month of $265 for 2.5 years, now i have made a habbit of making that payment, it's now in my budget . I know 265 is going out every month. now at the end of the 2 1/2 years instead of re-allocating that money elsewhere, i keep paying that same amount into my equipment account, which in turn builds up, and by the time i have to get the new mower again i dont have to re-adjust my budget, its already in my budget i have been paying it to myself, and the money is there if i want to use it or not.

As far as what rate would i go with, well i bought a new Dodge Ram in 04 and financed the whole thing @ 0% was not charged to use there money so ya go for it., i dont beleve you should ever self insure though.
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Old 07-23-2008, 05:41 PM
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I have a question

How many years/hours do companies start trading in for better/newer/upgrade equipment ?

My tractor just hit 300 hrs today and it's only 2.5 yrs old.

Use and abuse, I think I am ordering myself a commercial mower during winter for the spring.. I hope I get financed.
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Old 07-23-2008, 08:51 PM
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I bought a new mower, and I decided it wasn't worth the $1,200 - 1,500 I would be paying for a commercial mower. As long as you're not thrashing your mower around, a high end consumer model works just as well. I used a cheap piece of junk from Canadian Tire before (it was about $250) and it lasted 3.5 years. The new Toro I got was $500 and has a two year warranty for everything, it's pretty solidly built and I haven't had any problems yet.
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Old 07-23-2008, 10:55 PM
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Quote:
Originally Posted by justin_time View Post
I have a question

How many years/hours do companies start trading in for better/newer/upgrade equipment ?

My tractor just hit 300 hrs today and it's only 2.5 yrs old.

Use and abuse, I think I am ordering myself a commercial mower during winter for the spring.. I hope I get financed.
I am a big believer in commercial all the way.

There are a few reasons for this:

1) The average commercial lawn equipment is built better than the average consumer lawn equipment. You might get lucky with a consumer unit but ordinarily commercial is going to outperform consumer everytime.

2) Running commercial equipment gives a sense of professionalism to your business. If customers see you with the same ratty lawn mowers they have in their basement they may decide they can do just as good a job themselves.

3) Downtime costs money. A day or two's lost productivity can counteract the money you saved by buying a consumer unit.

4) Business relationship with the dealer. Buying from equipment dealers has perks. Those guys know the inside scoops on lots of contracts and upcoming jobs. If you have been a good customer to them, they will scratch your back too and give you the low down.

As far as number of hours before thinking about trading goes, I guess I've always had good luck with my equipment. I'm a firm believer in a very strong maintenance schedule. Oil changes, filter changes, lubrication, weld cracks before they get out of control, replace bearings, etc. It's a good question though...I guess I've never really thought about trading equipment before about 2,500 to 3,000 hours for most of my commercial mowers.

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