Leasing a Truckmount

[Jeff Brown]

Looking at the SS Rage truckmount, I've never leased a tm and although I like some of the advantages of a lease it seems on a 60 mo. term on about $13,000 there is around $5000 in intrest.


Is this normal for a lease on someone with good credit?

 

[Shane Deubell]

Jeff i have a lease vs. buy calculator if you want it.
Might make it a little easier to see everything laid out.

Send me your email if you want it.

 

[Desk Jockey]

What's the interest rate?

That seems a little high, you might be able to save some if you can get a better rate from someone else.

I don't know it's been a while since I shopped a rate but I would think you could save 1K or more. ??? Worth shopping it either way.

 

[Jim Williams]

It's pretty normal. I was going to lease the same machine from Interlink. They wanted $1700 down and $440 a month for 48 months. I decided to just replace the engine on my 9 year old White Magic Commander and keep on getting it with no payment.

If you have good credit I would try a bank loan instead.

 

[Shawn Forsythe]

When the question is a general one, between leasing or buying, it is alsways a good idea to consult with your tax adviser/planner on that question. Once you have the lease and purchase quotations available, that person will be be in the best position to indicate which profile will serve your overall interests better. It usually is not a simple question as to which has the least mathematical expenditure, as a lease can offer some distinct tax advantages that may impact your actual net costs.

Other item to consider is your personal credit line. A business lease will often preserve 100% of your personal credit, so it will not impact your buying power should you need it. As well, a lease also impacts purchasing/lend acquisition power of the company far less detrimentally.

As the lease company from whom you have been given a lease quote, to also see if they offer purchase agreement options (basically the same as a loan). That way, you can compare the rates to conventional bank financing without making unnecessary applications and credit checks.

As an uninterested participant (it matters not whether our customers lease or buy), I suggest that the customer's financial adviser get involved in the decision. The monthly payment and the finance rate often don't tell the whole story when comparing lease versus buy. Direct comparisons are useful in comparing buy/buy or lease/lease only.

 

[Desk Jockey]

I prefer the lease, I decide how much I want to put down, the length of payments and the residual at the end of the term. I'm paying for those conveniences but it enables me to get in a lower rate than a bank loan which is structured more rigidly.

 

[jcooper]

Looking at the SS Rage truckmount, I've never leased a tm and although I like some of the advantages of a lease it seems on a 60 mo. term on about $13,000 there is around $5000 in intrest.

Not to throw a kink in your plan, Jeff... I'd wait a little longer(save more) and get the 370ss. After a year or two with the rage, you will wish you got the 370. ss370)

Another good thing about the lease, it won't count against your credit. Also, one thing people forget. Any unit you have a loan/lease on will require insurance for the unit. So, plan on another 50 bucks a month for tm insurance.

When we bought our tm(ss370) I put down like 3-4k for 60 months with GREAT credit and pay $320 a month, plus tax and insurance or $380 total. Best money I ever spent/spend.

 

[juniorc82]

ya if you do a lease get the 370ss you will be much happier with a #4 blower. Im not a fan of the lease but at least you can write off all your payments.

 

[doylebloss]

Jeff-
Shawn provides some great advice above. The numbers you provided sounded a little high to me, so I asked our finance folks here about your numbers. Of course, your rate is going to be tied to your credit rating, how long you have been in business, etc..

Here is what the folks at our leasing company (Hathaway Capital www.hathawaycapital.com) responded: "Based on the numbers you have provided, that appears to be a higher than average lease rate they are quoting. It would generally calculate out to a 13.63% rate, and that is assuming it was just $1 lease buyout. If you have good credit and some time in business, you could potentially qualify for a better rate structure. Looking at our current rate chart, you would probably qualify closer to a 7.99-9.99% rate, which would mean you pay after 60 months between $2800-$3500 in interest. We currently provide financing/lease options for HydraMaster truckmounts, so it would be pretty easy to approve you same day if you were to consider that option compared to Sapphire. We are also offering a special where you only pay $25 for the first three months. So you can acquire your equipment now, use it for a tax write-off in 2013, and not make a regular payment until spring."

Please feel free to call Leif at Hathaway at

877.871.8500 or email him at ​

info@hathaway.com

.​

If you are abolutely set on that model of truckmount, there are other companies that lease or finance that company's equipment, so don't be afraid to check around.

Regards,

Doyle Bloss</SPAN>

Marketing and Brand Manager

HydraMaster</SPAN>

 

[Jeff Brown]

Thanks everyone, lot of great info. I will be looking into other options.

 

[Larry Cobb]

Jeff;

The main consideration is the #36 vac blower.

That will work for single wand operation only.

Commercial jobs might be better with a #4MR blower and dual wands.

You can get a TM @ that level for about 10K with some brands.

With a bank relationship & 25%, you should get a quote from your bank.

Larry

 

[Shane Deubell]

Best thing we can do in financial questions is look at the facts for your specific situation. Use that calculator jeff and take bids from 3-4 different places min, everybody puts us out to bid why wouldn't you put your vendors out to bid?

The interest rate, credit rating, available capital and tax benefits are going to swing wildly between all of us.

 

[Lee Stockwell]

Jeff;

The main consideration is the #36 vac blower.

That will work for single wand operation only.

Commercial jobs might be better with a #4MR blower and dual wands.

You can get a TM @ that level for about 10K with some brands.

With a bank relationship & 25%, you should get a quote from your bank.

Larry

Remembering that this is an "entry level" machine, the 36 blower is entirely appropriate. The performance would be virtually indistinguishable from the 45.

Like the 36, the 45 is also too small for dual wanding in the real world.

 

[Larry Cobb]

Remembering that this is an "entry level" machine, the 36 blower is entirely appropriate. The performance would be virtually indistinguishable from the 45.

Like the 36, the 45 is also too small for dual wanding in the real world.

Lee;

We accurately tested all four common blower sizes @ the BarBQ last summer.

All were tested with our 1% Digital gauge with 100' of 2" hose and the exact same wand on the same carpet.

Here are the actual test results:

http://www.cobbcarpet.com/zen/index.php?main_page=document_general_info&cPath=63&products_id=4950

Larry

 

[Lee Stockwell]

The problem with statistics graphs and agendas:

The graph is more indicative of the progressively larger ENGINE sizes in your test, period. A 22 hp engine should be expected to outperform an 18hp.

If you were to swap out the 36 in an 18 hp Rage for a 45 the difference would be negligable.

 

[Desk Jockey]

I'd look at the difference in payment between machines. It seems every time I look at leasing a used van I can pay slightly more and get new one.

If you're not talking about much more per month then upgrading to a large unit makes sense.

18 vs 20hp, 3 vs 4 blower probably not going to make any visual or noticeable drying difference at the carpet. Where it limits you is distance on extended hose lengths, but not much for residential.

 

[Larry Cobb]

The problem with statistics graphs and agendas:

The graph is more indicative of the progressively larger ENGINE sizes in your test, period. A 22 hp engine should be expected to outperform an 18hp.

If you were to swap out the 36 in an 18 hp Rage for a 45 the difference would be negligable.

These were the engine HP's:

The 30 HP TM with the #47 was behind

the 22 HP TM with the #45 blower.

And burning more Gas.

Larry

 

[Lee Stockwell]

These were the engine HP's:

The 30 HP TM with the #47 was behind

the 22 HP TM with the #45 blower.

And burning more Gas.

Larry

Which confirms two facts:
The test was flawed by focusing on static lift instead of the real world dynamic mix of lift AND cfm.

The second conclusion is that you tested a pos 3047 if it was only marginally better than a 33 based unit.

:-)


Sent from my SAMSUNG-SGH-I337 using Tapatalk 2

 

[hogjowl]

Anybody reading Larry's comments prior to the "test" could have determined well beforehand what the outcome was going to be.

 

[Desk Jockey]

You'll need to splain that one to me Lucy.

 

[Larry Cobb]

Which confirms two facts:
The test was flawed by focusing on static lift instead of the real world dynamic mix of lift AND cfm.

The second conclusion is that you tested a pos 3047 if it was only marginally better than a 33 based unit.
:-)

It was not static lift !

It was actual lift at the wand while extracting the carpet . . .

which is proportional to actual CFM thru the carpet fibers.

Larry

 

[juniorc82]

Jeff;

The main consideration is the #36 vac blower.

That will work for single wand operation only.

Commercial jobs might be better with a #4MR blower and dual wands.

You can get a TM @ that level for about 10K with some brands.

With a bank relationship & 25%, you should get a quote from your bank.

Larry

Larry I think it is kind if an over reach to tell people they can dual wand with a #4mr which essentialy is a 45 blower from what I understand. I think that it is a stretch to dual wand with any number 4 machine for that matter. I think the responsible approach would be that a #4 blower can support a highflow wand or large wands and roto's as well as clean faster and remove more than a 36 blower can. I have a 47 and would only run a wand and upholstery tool and I have a friend with the 4008 gardner Denver on a 454ss and Im still a little iffy about true dual wanding with that one too.Im just not seeing how manufaturers keep marketing #4 machines as dual wand. The best I have heard someone call it is a serious single wand machine.

 

[Lee Stockwell]

It was not static lift !

It was actual lift at the wand while extracting the carpet . . .

which is proportional to actual CFM thru the carpet fibers.

Larry

I know it's not your intent to deceive, yet....

Please defer to the numbers Tuthill publishes with regard to their blowers. Using a "four digit" meter that is designed for something else, in a "test" that defies physics, gave you deceptive results.

I have 4 Prochem 405s with 4L (47, 4007) blowers driven by Nissan 46 hp engines. I've owned the smaller blowers you noted. The 47 spanks them in the real world. There's a reason 405s with the 47 cost more than the std Performer with the 45.

Still, the 47 isn't a "dual wand" blower...if you have cleaning standards. Bane dual wands with 33s.... The 47 is a 1.5 wand blower.

That must have been some BBQ! :-)

 

[Scott Rogers]

Jeff, knowing your tenancy to buy and sell vehicles and equipment.

Lease is harder to move out of early, a purchase you can re-sell easier.
A 45 blower will be easier to sell and hold more of it value compared to the 36 machine

the 45 has more available air movement so as the blower wears you will have less noticeable loss of suction then with the 36. Also the 45 does better on longer runs


The TCS machine is a better value then the name brand machines, and being so close to them you have full support if any issues do pop up.

I know u want a HE machine instead of a propane unit. If TCS wont build you a HE machine, then order the Chief 2 minus the heater and use a Heat exchanger from Johns HE or Cobb.

 

[kingjoelking]

When I bought my Saphire 370SS I had 2 dealers competing. It saved me over $130 a month in monthly payment and $1300 on the downpayment. One Degree was awesome to deal with. They were not going to be beat. PS I love my 370SS.

 

[Russ T.]

It looks like the test shows the 45 Blower with better performance than the 47. I don't understand how that could be, with everything else being equal? I have 2 TM's. One has the 45 blower driven by a 20 HP Kohler engine and then my Cleanco PTO has the 47 blower. The Cleanco has significantly better suction than the other, while using the same 2" hose to a Devastator in line filter. Maybe the graph is labeled wrong? How about a 56 blower? Are we then to believe the performance goes down still? I don't think so.


The Clean Machine

 

[Russ T.]

All that being said to say go bigger than the Rage if you can. I bet the "Rage" isn't much more than a small temper tantrum. I have an entry level slide in that I mentioned in the previous post for sale. It has the 45 blower and 20 HP Kohler with under 900 hours on the machine. I'd rather have my TM than that little "Rage".


The Clean Machine

 

[SamIam]

Ya I had a legend se with a 4.5 blower and my 405 blows that away, maybe it has to do with someone's plumbing???

Or design, airflow restrictions or, leaks!

 

[Desk Jockey]

It looks like the test shows the 45 Blower with better performance than the 47. I don't understand how that could be, with everything else being equal? I have 2 TM's. One has the 45 blower driven by a 20 HP Kohler engine and then my Cleanco PTO has the 47 blower. The Cleanco has significantly better suction than the other, while using the same 2" hose to a Devastator in line filter. Maybe the graph is labeled wrong? How about a 56 blower? Are we then to believe the performance goes down still? I don't think so.


The Clean Machine

Texas math.

 

[Larry Cobb]

It looks like the test shows the 45 Blower with better performance than the 47. I don't understand how that could be, with everything else being equal? I have 2 TM's. One has the 45 blower driven by a 20 HP Kohler engine and then my Cleanco PTO has the 47 blower. The Cleanco has significantly better suction than the other, while using the same 2" hose to a Devastator in line filter. Maybe the graph is labeled wrong? How about a 56 blower? Are we then to believe the performance goes down still? I don't think so. The Clean Machine

Russ;

All the machines we tested were built by the same company.

The #45 blower has 2" hg. more lift available, compared to the #47 blower.

All blowers in our testing were preset at the maximum recommended by the blower manufacturer.

With the Gardner Denver blowers we were using,

that max. would be 14" hg. for the #36 & #47,

and 16" hg. for the #45 blower.

The #56 also has a 16" hg. max,

so it would outperform the #45 blower.

Your 20 HP with the #45 should be set @ 2" higher lift,

than your #47 PTO for best performance.

Larry

P.S. Testing was done with 25 carpet cleaners watching preliminary testing and recording actual testing on the carpet.
How many equal scientific tests have you seen with 4 different blower systems run side-by-side.