superjunior
Addicted to ArboristSite
I almost went through my old finance co to purchase my new grinder but checked with my bank at the last minute and glad I did. Paying 1/2 the interest, bank is saving me $$ big time..
Stump grimder finance problem
- Thread starter swyman
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I almost went through my old finance co to purchase my new grinder but checked with my bank at the last minute and glad I did. Paying 1/2 the interest, bank is saving me $$ big time..
swyman
ArboristSite Operative
Pins have some wear, belt and pulleys look brand new. The filter hours were written with a sharpie and said hrs. Not sure on compression but no smoke even under heavy load. For the hours the machine is in great condition but I would have to have to rebuild the engine.
swyman
ArboristSite Operative
I have not checked with my local bank on this purchase. I may give them a call but I think if the machine was new I would have not problem but $14k on a 15 year old machine may pose and issue. Did they give you fairly long term to keep payments low with option to pay off early. That is what I am thinking of.
stump grinder
ArboristSite Member
I took it for 60 months at I think 6.45% at the time. It is $315 per month, I did trade in my rayco 1625 and put down a few thousand on it. I borrowed $16,000.
swyman
ArboristSite Operative
I feel comfortable with anything under $400. Will have some searching. I don't want to let down my cutomers, the stump bids keep coming in but I don't know if it will last since I have not even thought about them before. Most will probably be form my own removals, have 7 on the job board right now. I just don't like going into the unknown, I'm afraid of the risk. Has anyone reading this forum and does stump grinding NOT been able to have the grinder soley pay for itself?
himiler
If I wake up . . . it's a good day.
It's my belief that the dealer wanted to get you hooked on a questionable machine. Bottom line is would you treat your customers the way you have been treated by the Rayco dealer? If the answer is "NO" then don't waste your time and emotion on their trap. Trust me when I tell you that money management is way more important than money making. Bide your time, increase your knowledge on your options, stash your money and when a good deal comes along, you'll be prepared. If the opportunities are there now to make money with a stump grinder, is there any reason they won't be there in the future?
Steve
tree md
Addicted to ArboristSite
Lol, I paid $200 for my grinder and have put about $300 into it in two years... I am having to put a new electric clutch this week but even so, I have made my money back 200 fold on it.
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Grouchy old man
ArboristSite Operative
Yup and that's a good point. Not defending banks but if they believe it's not worth that much where the hell do the guys selling it come off thinking that's how much it's worth? Must be a lot of suckers with cash or else it would be sitting there until they cut the price in half.
stump grinder
ArboristSite Member
Consider this, people trade in their machines for several reasons. They don't like it, need something better or different or they have worn it out or something else. 300 hours vs over 3000 hours and no disclosure from the dealer? Deal killer for me. I saw stress fractures on my 1625 at 625 hours and got rid of it. Are you a tree service? I am strictly stump removal. I have a full time job like you do and I don't have much time to do things for myself during stump season. So If you remove trees, do you have extra time to be messing with the stumps? Is there more money to be had doing just the trees? Or Perhaps a brand new smaller self propelled machine that can be had for under $20000 might fit. You can get into so many more places with them and the money is in the small stumps and not the big ones. I would rather do 10 small ones than one big one that takes a ton of time. They still do the big stumps as well. Granted a diesel is nice. Good luck!
tree md
Addicted to ArboristSite
Right on. You know what they say bout a fool and their money...
superjunior
Addicted to ArboristSite
I got a pretty good deal with them. Its a 17k machine, I put 5k down and payments are 367 a month for 3 years. I can buy out early after 1 year with no penalty. They're only charging 6% interest where my old finance co was going to charge 12%
Frank Boyer
Addicted to ArboristSite
Read your paperwork before you sign. Some leases add on the sales tax to the payment. Always check what the payoff is, on some lease to own leases the payoffs are $1. Total up all of the costs including filing fees. I've seen filing fees from $150 to $600 for the same paperwork.
BigWill1985
ArboristSite Lurker
Wow, sounds like they were trying to run you through the ringer! Bought our stump grinder (Vermeer 206, 3-wheeled, self propelled, center/manual pivoting, with 20hp Kohler gas engine) back in January for $2900. It had only 27 hours on it, and honestly looked like new. Was owned by a municipality in New Jersey, and they got tired of storing it. We just waited for tax returns to come back and paid for it with cash.
Not sure about how you guys operate, but there isn't a lot of money to be made doing stumps here. Gas/travel expenses eat up a majority of the profit. We make our money doing tree work, and use our stump grinder as a deal maker in getting jobs. Our grinder is small enough to fit into pretty much any space, yet big enough to tackle large stumps (did a 14.5' circumference red oak stump here just a few weeks ago). Sure, it's not as easy as a full hydraulic grinder, but I also don't have to keep work rolling day in and day out or worry about how I am going to make payments. I also don't have to worry about someone taking away a major tool that provides my income.
~Will Courtier~
Not sure about how you guys operate, but there isn't a lot of money to be made doing stumps here. Gas/travel expenses eat up a majority of the profit. We make our money doing tree work, and use our stump grinder as a deal maker in getting jobs. Our grinder is small enough to fit into pretty much any space, yet big enough to tackle large stumps (did a 14.5' circumference red oak stump here just a few weeks ago). Sure, it's not as easy as a full hydraulic grinder, but I also don't have to keep work rolling day in and day out or worry about how I am going to make payments. I also don't have to worry about someone taking away a major tool that provides my income.
~Will Courtier~
arbor pro
Addicted to ArboristSite
I thought you bought a sc252 not so long ago? Or was it just a forum discussing which grinder to buy? Anyhow - my advice on that matter stands - start out with a smaller machine like a 252 or the rayco 1625 - either of which you can find for around $5k +/- depending on condition and grind away. You can do any size stump with that machine and you can have it paid off in a single season. You don't need a 70hp machine to get started and borrowing only $5k should be a lot easier than finding someone to loan you $17,000. You can always upgrade to the bigger machine once you know the business is there to justify the purchase. Just my 2 cents...
AP
superjunior
Addicted to ArboristSite
Thats what I did. Started with a 1625 then bought a 1672 when I could afford it. Having a small self propelled and a big tow behind is one awesome combo
swyman
ArboristSite Operative
Thank you everyone
Dealer is coming to pick up the machine today. Thank you guys for all the input and all had great points and I still have a cash stash! I did manage to make $600 off of it this past week and wish conditions would have been right and could have done the job for $1300. I will look into renting a 752 from vermeer for a week when I get more stumps lined up and knock'em out quick. I think I may look into buying a smaller self propelled like y'all said. I'll see what options are out there and not rush into anything especially if it don't feel right like this one.
Thanks,
Shane
Dealer is coming to pick up the machine today. Thank you guys for all the input and all had great points and I still have a cash stash! I did manage to make $600 off of it this past week and wish conditions would have been right and could have done the job for $1300. I will look into renting a 752 from vermeer for a week when I get more stumps lined up and knock'em out quick. I think I may look into buying a smaller self propelled like y'all said. I'll see what options are out there and not rush into anything especially if it don't feel right like this one.
Thanks,
Shane
mattfr12
The Bulldog
I go through my bank. Interest rates are gonna be less. Whenever I'm gonna do a major purchase I just call the three major banks in my area and shop the interest rate. They gave me 4.0% on a used truck. I usually won't bite on anything over 6%.
The kinda payment your looking to pay will get you a nice machine. I sold my bobcat on the tree trader I think it's still listed with the stump grinder and picked up a carlton ox with 145hp. And am paying 500$ for it. I put some green down tho it was an 2008. I had the bobcat paid off so it gave me a nice 30k down payment.
But 4-5 Hun a month is gonna get you a nice machine. What kinda interest rate are they offering because your payment seems high to me but I may be wrong.
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swyman
ArboristSite Operative
Was high, didn't show rate but figured to be around 13% no way I was doing that. Damn near had myself talked into it though. Want to stay high 300's on payment. Will find something.
mattfr12
The Bulldog
Ya that is highway robbery, 13% is high I'm at 6% or 7% on my grinder. And I'm sure you can obtain a % just as good if not better. As long as you didn't trash your credit or are in debt up to your eyeballs.
A lot of times you gotta look at the stipulations the banks or lenders have some charge more on used equipment vs new. it is rare but it has been cheaper for me to take out a personal loan before other than take used vehicle rates.
I have talked myself into a lot of stuff. Sometimes the want causes you to overlook things like 13% and say ah thats not to bad. But i can guarantee you its a good thing you lost this deal because your gonna get a better one.
for 350-400 a month that puts you in the price range of a 25-30k grinder. (roughly) that gets you a morbark D76 on tracks 60hp diesel. Less than 500 hours and 3-5 years old. If you can't find one at this price let me know i run across the Morbarks a lot.
i myself have tried vermeer, morbark, and am now onto carlton and think it is by far the best thought out stump grinder ever with the full 360 degree rotation. and in your price range you can get a 60hp carlton with the same features.
good luck and hope you get what your looking for.
mattfr12
The Bulldog
also stay current with your banks i just refinanced one of my trucks for the same amount of time i think their was one year left on the loan. i saved 80$ per month by the new lower interest rate they where offering. I'm always looking if your not paying attention their only gonna try and go deeper in your pocket.
i paid a CC off a few months ago and still got a bill for 22.00. called them up and they said it was interest even tho i sent the whole amount in. theirs always a scam.
