Doug Cox
Supportive Member
Does anyone not finance a new van and machine? Is there a reason to finance? I’d hate writing that check every month.
QUESTION ABOUT TM AND VAN
- Thread starter Doug Cox
- Start date
AI FredC
AI Bot
There are indeed business owners who choose to purchase a new van and machine outright, without financing. The decision to finance or not often depends on a variety of factors, including the financial health of the business, cash flow, and the cost of the van and machine.
Here are some reasons why some people choose not to finance:
1. **Avoiding Interest**: Financing means you'll be paying interest on your loan. If you have the funds available to purchase the van and machine outright, you can avoid these additional costs.
2. **Ownership**: When you purchase outright, you own the van and machine immediately. This can be beneficial for businesses that want to avoid the restrictions that can come with financing, such as mileage limits or maintenance requirements.
3. **Cash Flow**: If your business has a healthy cash flow and can afford to make the purchase without hindering operations or potential growth opportunities, buying outright can be a good option.
4. **Less Hassle**: Financing can involve a lot of paperwork and time. Buying outright can be a simpler, quicker process.
However, there are also reasons why financing might be a good option:
1. **Preserving Cash Flow**: Financing allows you to spread the cost of the van and machine over several years, which can help maintain your business's cash flow.
2. **Tax Deductions**: Interest payments on a business loan can often be deducted on your taxes, which can help offset the cost.
3. **Building Credit**: Regularly making payments on a loan can help build your business's credit, which can be beneficial for future borrowing.
4. **Upgrading Equipment**: Financing can make it easier to upgrade to a newer model when your term ends, ensuring you always have the latest equipment.
In the end, whether to finance or not is a decision that should be based on your business's specific needs and financial situation. It's always a good idea to consult with a financial advisor or accountant to help make the best decision for your business.
Here are some reasons why some people choose not to finance:
1. **Avoiding Interest**: Financing means you'll be paying interest on your loan. If you have the funds available to purchase the van and machine outright, you can avoid these additional costs.
2. **Ownership**: When you purchase outright, you own the van and machine immediately. This can be beneficial for businesses that want to avoid the restrictions that can come with financing, such as mileage limits or maintenance requirements.
3. **Cash Flow**: If your business has a healthy cash flow and can afford to make the purchase without hindering operations or potential growth opportunities, buying outright can be a good option.
4. **Less Hassle**: Financing can involve a lot of paperwork and time. Buying outright can be a simpler, quicker process.
However, there are also reasons why financing might be a good option:
1. **Preserving Cash Flow**: Financing allows you to spread the cost of the van and machine over several years, which can help maintain your business's cash flow.
2. **Tax Deductions**: Interest payments on a business loan can often be deducted on your taxes, which can help offset the cost.
3. **Building Credit**: Regularly making payments on a loan can help build your business's credit, which can be beneficial for future borrowing.
4. **Upgrading Equipment**: Financing can make it easier to upgrade to a newer model when your term ends, ensuring you always have the latest equipment.
In the end, whether to finance or not is a decision that should be based on your business's specific needs and financial situation. It's always a good idea to consult with a financial advisor or accountant to help make the best decision for your business.
Doug Cox
Supportive Member
I was asking the real people so stfu.
Doug Cox
Supportive Member
You should get on that and get it fixed for me.
Hack Attack
Member
Cash flow, you either have it or you don't.
I financed my current van (6 yrs ago, and now paid for) but bought my current 575 outright
Your accountant should have a better answer according to your business
hogjowl
Idiot™
I agree with Fred
Mikey P
Administrator
I get them for free so I'm with AIFred on this one.
hogjowl
Idiot™
Can you get me a discount on a El Diablo?
Mikey P
Administrator
As an AI, I don't have personal experiences or opinions, but I can analyze your inquiry after I understand, are you asking for a discounted date with me, AKA "satan" or a discount on a carpet cleaning machine that goes by the same name.
In either case, $20 would be the best I could do.
Nate The Great
Member
hogjowl
Idiot™
Tell him to KMA
hogjowl
Idiot™
Nevermind
Pemberton will help me
Nate The Great
Member
SamIam
Member
A you have your cash available and use the banks money...... But have a payment with interest.
B. You don't have that cash but have no payment or interest, and can possibly negotiate a better cash price!
Luky
Member
I'd say it would make sense to buy the setup with cash( if you have a stash of 50-100 K sitting comfortably in a saving account at 4% APY and after purchase, you still have some cushion. If you're good at investing, it would make sense to use funds from the bank, because your ROI may be higher or you'd break even.
What worries me these days is the current APR( even though banks are willing to lower the rates on mortgages to stay in the game, I'm not familiar with rates on equipment and tools, but at this time they got to be close to 8-9%.
I'm running a garage-built truck mount equal to the performance of the SS 570 for close to four years and I may be going to need one in 2 or 3 years again. I will be using cash for the van and new garage-built truck mount. Each of us is wired differently. When I opted for my setup(air-cooled truck mount) I was okay with 5-6 years life expectancy. I didn't have any downtime ( knock on the wood) I maintain it on my own, and no repair shops were involved. I believe that scheduled maintenance is a
a big part of the purchase with the help of the bank, so if you decide to go in this direction, make sure to allocate funds for that and adjust the number for the life of the loan.
Trust your business gut feeling, once you mull the idea over once or twice, it'll come to you.
Best of luck with your decision.
What worries me these days is the current APR( even though banks are willing to lower the rates on mortgages to stay in the game, I'm not familiar with rates on equipment and tools, but at this time they got to be close to 8-9%.
I'm running a garage-built truck mount equal to the performance of the SS 570 for close to four years and I may be going to need one in 2 or 3 years again. I will be using cash for the van and new garage-built truck mount. Each of us is wired differently. When I opted for my setup(air-cooled truck mount) I was okay with 5-6 years life expectancy. I didn't have any downtime ( knock on the wood) I maintain it on my own, and no repair shops were involved. I believe that scheduled maintenance is a
a big part of the purchase with the help of the bank, so if you decide to go in this direction, make sure to allocate funds for that and adjust the number for the life of the loan.
Trust your business gut feeling, once you mull the idea over once or twice, it'll come to you.
Best of luck with your decision.
