gear on finance.. has it helped you??

[Boy English]

Evening all, been running on older gear for my first couple of years..

Never borrowed nothing and bought all my gear from my pocket, all old bits of kit that I have refurbished as best I can..

 

now were taking on bigger jobs the gear doesn't really seem to be cutting it anymore, some times it seems like were making hard work out of the situation, but its the best I can afford outright.

 

My old mans bought me up in the" if you cant pay for it you don't get it frame of mind" which has served me well without doubt ,

 

not looking at brand new stuff just modern would be nice, obviously replacement of machinery is in my costings but its tempting to think just get it now on the knock, make the job easier while getting more done..

 

I bought a mewp last year, really did skint I wouldn't be without it now, loads of subby work has come in and tbh I think it has been my best asset even though I put me in a nip arse financial situation for a while..

 

any advice from those who have lost or benefited from finance??

[timtree81]

Hey English boy , I would tend to agree with your way of thinking as far as running kit that you own , every penny it earns you are making . New machines are great but they all loose money need insurance , and keeping under lock key and shelter , new kit will also break down just like old kit , if your using your machines your self this is the better way compared to hired help/ staff using your older kit , what Eva way you look at it and I mean what Eva way , if you own it and look after it your on a winner it's just finding that balance between new and worn out

[JamesNI]

I'd be in your dad's boat. If the work tails off you will still be paying the installments, when it's bought and paid for at least it isn't draining you when not running.

I suppose it also depends how big your outfit is, if you are in a commercial contract with guaranteed work you could finance based on the length of that. I know plenty of people that would go bang tomorrow if it wasn't for loans and finance. Nothing wrong with that, just not for me.

[Hodge]

Finance is fine if you can meet the payments, when and if quiet times come it can be a right pain in the butt. I speak from experience. I am now finance free and its far nicer.

 

 

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[Matthew Storrs]

Simple answer to this, if you have guaranteed, and I mean proper contracts sealed and sealed then finance is a way to get the contract done in the most efficient way, if work is rolling in as and when then I would only buy if I had the money in the bank,.

Funny I was thinking about this today, traversing Dartmoor today with my 30 year old tractor today I was thinking it would be nice to own a newish tractor- literally minutes later I knocked the axle on a large boulder of granite that was hidden in the gorse I was driving through- no real damage done but had it been a new tractor on finance I would have been rather pee'd off. If you own a bit of kit outright its making money straight away.

[Boy English]

I know a few company's who don't own any of the gear outright, even a van.

 

just seems tempting to think another machine could benefit the business without having to wait until the bank account says yes.

 

looks like I had better get the welder out again

[timtree81]

Simple answer to this, if you have guaranteed, and I mean proper contracts sealed and sealed then finance is a way to get the contract done in the most efficient way, if work is rolling in as and when then I would only buy if I had the money in the bank,.

Funny I was thinking about this today, traversing Dartmoor today with my 30 year old tractor today I was thinking it would be nice to own a newish tractor- literally minutes later I knocked the axle on a large boulder of granite that was hidden in the gorse I was driving through- no real damage done but had it been a new tractor on finance I would have been rather pee'd off. If you own a bit of kit outright its making money straight away.

Who has contracts that are 100% guaranteed ? Even the power line company's pull the rug out from Under people's feet

[Mike Hill]

I think it depends on the type of kit and its potential to increase your profit.

 

If you have a knackered chipper that breaks down alot,costs you more in the way of time over-run and repair costs.Then what you pay in finance might be the same as just the time lost per month with your old rig.

 

This year I bought a newer wagon to replace my 1990 model.I hummed and arrrd but despite is highish cost,its ment that I have spent no time fixing it in nearly a year.

[Mitch]

Try arblease , gives you option on buying new or used

 

 

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[MattyF]

I Financed chipper on hire Purchase and recon it was the smartest move I made for my buisness .. No more monthly brake downs , productivity doubled and its a nice tax off set... I will do it again definitely when I have paid this off...