Stump grimder finance problem

[swyman]

So I found a 1672 rayco grinder at Rayco of Michigan. Dealer all happy and brings it down for me to demo. Love the machine and settled on a price. I figured rayco would have their own financing but the insisted going through a lease company out of grand rapids. Now I settled on a price that was not a smoking deal but none the less. This lease company came out with a 3 year and wanted my wife to sign to. Was more than I was.expecting but could still swing it. Called the guy to speak in person and told him where I wanted to be and said if I put down 10% he could get from $588 to $498/month. I have had the machine all week and today the sales manager came down to finalize. While I was.waiting I decided to service the machine and found out the true hours wrote on the inner air filter. 3546 and 320 showing on the hobbs. That is a lot of hours but machine runs perfect and I told him that if he'd knock another $1k off I would still take it. He stormed away only to text back later he would.accept my offer. Emailed the finance details and it only brought the payments down to $466 for 3 years and I would still have to put $1630 down. Then upon reading the "lease contract" the end of lease option is to purchase for $1332? What kind of horse s*** is that? I really want the machine for my negotiated price if I could go.through my own creditor. I feel they are playing dirty pool. I did try liberty but denied because I have only been in business 1 year. I pulled $600 this week with it so far and just got called for a $1300 job I bid last week for stumps. Money is not an issue as I still work fulltime in a factory so how the hell can I get ahead. I don't want to lose anymore business for not having a grinder. PLEASE HELP! I emailed rayco in wooster for insight.

 

[Tree Pig]

Isnt there always a buyout at the end of a lease?

 

[pdqdl]

Maybe wrong forum, but that's ok. Most of the regular guys don't go to the business forum, they come here, to be heard by their peers.

NEVER lease equipment, unless you are so desparate to buy something that you don't mind getting robbed while you own it. Leases are perfect for companies that are making so much money that they don't care what the equipment costs them.

Leases are intended to make money for the dealer/financier. Loans just pay the rent on the money you borrow, whereas most leases are sold to the gullible or the rich.

Don't do it! Find another way to buy it, or find a way to do without.

 

[swyman]

Maybe wrong forum, but that's ok. Most of the regular guys don't go to the business forum, they come here, to be heard by their peers.

NEVER lease equipment, unless you are so desparate to buy something that you don't mind getting robbed while you own it. Leases are perfect for companies that are making so much money that they don't care what the equipment costs them.

Leases are intended to make money for the dealer/financier. Loans just pay the rent on the money you borrow, whereas most leases are sold to the gullible or the rich.

Don't do it! Find another way to buy it, or find a way to do without.

I never wanted to lease and not gonna, that's just who the dealer.recommended to finance through. Its not right I feel
they are trying to cheat me. Sorry del, just looking in here because I feel there are some guys in here that have been through the same thing and give me a good route to go. I am looking for the traditional loan, I can go to the Ford dealer.and drive off in a $60k pickup but can't get a normal loan for $14k on something I'm going to make money with?

 

[himiler]

Every lease or loan is another opportunity for someone else to own you.
They want your wife to sign? The guy storms off and then texts back?
Lemme see, isn't it also drug dealers that let you use for free before charging?
See this for what it is, or you could end up like me and have no choice but to pay cash for any and everything.
Steve

 

[formationrx]

do it the old way....

.....save your ####### money and put cash on the barrel head..... sounds like you are getting the #### end of the stick..... id give that machine back and find one cheaper.... you may have to do some real searching but you could probably find one half the price of what those mooching leech #### suckers want..... payments always just put you in a stress position.... what if you got to take some time off?...

 

[himiler]

The company lied to you about the hours. They won't just stop at taking the machine back, they'll take everything til they get what you owe them. They HOPE you'll not be able to pay. Man this brings up a lot of angry emotion for me.

 

[Bigus Termitius]

The hours issue would be enough for me to laugh and walk. Too many good ol grinders out there to take a bath on one.

 

[greendohn]

the actual hours on the machine would send up a red flag. SEND IT BACK and find one that fits your budget.

Ya' gotta crawl before ya' walk

Ya' gotta walk before ya' run...

I could of bought a very nice older Vermeer for $3500.00 a couple years ago. 4 cyl. recent service, ie..bearings ...

 

[2treeornot2tree]

I picked up a Rayco 1625A SJR for $2500 last fall. Hour meter was broke in this one too. It said 100 hrs, but the machine looked like it had about 700 on it. Came with the trailer, and a spare tire.

I would tell them to go get bent. They had to know the true hours of that machine, and they choice to play if off at the lesser hours. Look around, you will find one cheaper.

 

[superjunior]

I picked up a Rayco 1625A SJR for $2500 last fall. Hour meter was broke in this one too. It said 100 hrs, but the machine looked like it had about 700 on it. Came with the trailer, and a spare tire.

I would tell them to go get bent. They had to know the true hours of that machine, and they choice to play if off at the lesser hours. Look around, you will find one cheaper.

Wow 2tree if there wasn't any major issues with that machine I'd say you stole it at that price. Good find!

 

[superjunior]

Swyman if you still really want that machine despite what you have learned then you might want to check out Keystone equip finance co. That's who Rayco referred me to when I financed my first grinder. They will bend you over some.. that's the rough part of being a new business with no real credit history. Rayco doesn't really do much in house financing as much as referring you to a finance co that fits your credit situation.

Personally I would never pay that kind of $ for a machine with that many hrs and to get raped on the financing will make it hurt a lot worse..
Good luck

 

[treevet]

Maybe a little off topic and you won't find any used ones likely yet but this a great option for tons of reasons. We have paid this off in jobs in less than a year and done hundreds and hundreds of stumps with it...even a 12 footer.

View attachment 230535

 

[2treeornot2tree]

Maybe a little off topic and you won't find any used ones likely yet but this a great option for tons of reasons. We have paid this off in jobs in less than a year and done hundreds and hundreds of stumps with it...even a 12 footer.

View attachment 230535

Does that have a rider platform on it too? I like that alot.

 

[2treeornot2tree]

Wow 2tree if there wasn't any major issues with that machine I'd say you stole it at that price. Good find!

Nothing major. Normal wear and tear. Gonna have to replace the wheel and pockets at some point. It has already paid for its self, two times now.

 

[Dadatwins]

I used Northern financial for a recent purchase and was very happy with results. I think leasing is for very large companies that know they are going to turn over the equipment at the end of the term. That is a lot of hours on a stump machine and engines are not cheap. The dealer should have service the equipment before turning it over to you and was not being straight about the condition of the equipment. I would walk away and keep looking. Good luck.

 

[superjunior]

Nothing major. Normal wear and tear. Gonna have to replace the wheel and pockets at some point. It has already paid for its self, two times now.

A damn good find. I think I paid 6k for a 99 with 600 hrs on it. Ran it for about 8 years and sold it for 4k. It paid for itself many times over. My new one is being delivered mon or tues

 

[Bigus Termitius]

Maybe a little off topic and you won't find any used ones likely yet but this a great option for tons of reasons. We have paid this off in jobs in less than a year and done hundreds and hundreds of stumps with it...even a 12 footer.

View attachment 230535

Would love to see one in action. Still using the ole 665?

 

[treevet]

Would love to see one in action. Still using the ole 665?

yeah the 665 is running great since I had a total engine rebuild by Vermeer Ryan.

2Tree...no platform but you could put one on they said.

 

[Bigus Termitius]

yeah the 665 is running great since I had a total engine rebuild by Vermeer Ryan.

2Tree...no platform but you could put one on they said.

I'll bet that wasn't too cheap. What did that cost you?

Just found that 665 that they sent me on a wild goose chase for. It's in aurora. I might call them and make an offer taking a rebuild into consideration. The city is requiring a 12" depth. Your old 630a did it with a set of jackets on it, but it was time consuming. It's paid for itself anyway. Time for a refresh tune up and belts. Going to paint it if I can ever put it to the side for a bit. Thought this winter would let me, but I was stayin too busy with it. :msp_thumbup: