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New L220 on the way!!!!

Discussion in 'Heavy Equipment' started by plowfever, Nov 16, 2011.

  1. plowfever

    plowfever Senior Member
    Messages: 234

    Well guys I finally made a decision on a skid steer. I ended up going with a new New Holland L220 loaded to the gills! It is going to be sweet with heat/air radio pilot controls hydraulic couplers and the whole nine yards. I got the cold start package on it as well so I will be able to plug it in when I have it parked at the lot. I decided to lease it for 5 years since in 5 years it will be time to replace it anyway. I found it to be much more cost effective and plus I can write 100% of it off. I will post pics when it arrives home in about 10 days.
     
  2. ponyboy

    ponyboy Senior Member
    Messages: 957

    Sharks a five year lase
    Congrats
    And can we know what the payment terms are howbmuch per month how much down
     
  3. plowfever

    plowfever Senior Member
    Messages: 234

    Payment is $580 a month for the skid and I decided to put the Avalanche pusher on it so it bumped it up to $608. I have to put the first and last payment down so $1216. The purchase option at the end is like $15,000 which I won't do I will just start over with a new machine at that time. The dealer told me that this is what a lot of large farmers and contractors are doing because they can upgrade to new equipment every few years.
     
  4. erkoehler

    erkoehler PlowSite Veteran
    Messages: 3,268

    I wonder if anyone has done the $399 a month option that is offered at the top of this page???

    Why not go w/ that option and save yourself a couple hundred a month? Is there that much difference in options?
     
  5. erkoehler

    erkoehler PlowSite Veteran
    Messages: 3,268

    Any limit on number of hours allowed?
     
  6. Marek

    Marek Senior Member
    Messages: 270

    does the lease limit your machine hrs ?
     
  7. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,045

    Congrats on the skid. Leasing is a great way to get started but your better off eventually owning things, it's the only way you'll ever get ahead. JMO
     
  8. plowfever

    plowfever Senior Member
    Messages: 234

    That lease if you read the details you have to put like $6000 down to get it that low. I am limited to 400 hours a year which I won't come close to I don't believe. And I agree about owning out right as I am debt free other than this payment. I have a 2007 Nissan Titan with only 49,000 miles, a new Deere Z930A MOD paid for as well as everything else I have. I am going to try this and see how it goes.
     
  9. WIPensFan

    WIPensFan PlowSite Veteran
    Messages: 3,491

    Congrats on the new skid.

    I've never leased anything before so I'm having a hard time understanding why you leased. It's just because you didn't have enogh money to put down? You will pay $608/mon. for 5 Yrs. = $36,480 then you have to turn it in or pay another $15,000 to own it outright - so total payment to own is $51,480? Additionally, I don't know why you would need a new one in 5 years, it will have 2000 or less Hrs. based on no more than 400 Hrs/Yr. How much was the asking price? - $35-38000? At least you have the write off.
     
  10. ponyboy

    ponyboy Senior Member
    Messages: 957

    I agree put down 10% plus taxes so $6000 then 5 years at 0% intrest same payment it is yours then you could sell it if you want to at any time in a lease you cantbturn it back in it will hurt your credit
     
  11. newhere

    newhere PlowSite.com Addict
    from Fenton
    Messages: 1,288

    so what your saying is that your doubting yourself and your not sure if you will be able to pay it off? i hear you loud and clear. Stop being a woman and bite the bullet. Do you have the work for it? can you make the payment? dont lie to yourself. if you can then you need to buy that darn thing or your just getting the screws put to you. Leasing is not a good option for you. Farmers lease becasue they run the living crap out of the machines, when they give them back they are held together by a thread. If your only putting 400 hours on a year you need to own that machine and run it for 20 years.
     
  12. plowfever

    plowfever Senior Member
    Messages: 234

    I understand everyone's point on this. Here is my reasoning on my decision. I talked with the service guys and a friend that works on skid steers everyday and they all tell me that around 1500 hours you typically start having pump issues and they start having little issues from there on out. I am also not a guy that keeps things for 20 years and keeps pouring money into a machine. I trade mowers every two years and plan on doing the same with the skid steer as well except it will be every 5 years instead of every two as of right now. Also the lease through New Holland has a buyout so if two years down the road I decide that I need a bigger machine or want to buy a machine I can. I know this isn't for everyone but for me it sounds like it is going to work out perfectly. I do have the work to pay for it. That would just be a stupid business decision if I didn't have the work to pay for a machine I was buying. Well enough trying to justify my business decisions to people that have no idea about my company, financial portfolio or anything else. All I can say is when you are 30 and have a 177 acre farm two newer cars and all my equipment paid for and living debt free I must be doing something right!
     
  13. ponyboy

    ponyboy Senior Member
    Messages: 957

    Yes you are but buy it then you can sell it used in 5 years you still will get &15k for it I have an older lx 885 from 2001 high hours 2200 or so still a great machine I have been offered money for it but I like having extra of everything
    It makes more sense to buy it keep it maintain it then sell it for top dollar
    Hopefully your company grows and then you want to go to their biggest machine you can always sell or trade in a bought machine in a lease you are stuck with what u have. Either way good luck
     
  14. 4700dan

    4700dan Senior Member
    from Ohio
    Messages: 329

    Yep leasing is not a good way to go we have a 1993 Komatsu wheel loader 6300 hrs. a 2001 Bobcat S185 2800 hrs. and a 2000 New Holland LX 885 4800 hrs. and a 2012 Bobcat S650 0 hrs. these machines are paid for except the 2012 (financed at 2.9%) but they have not had pump problems and stuff like your machanic says, you have to PM all machines they will last a long time my friend