How to Fund That Zero-Turn Mower Purchase

Zero-turn lawnmowers aren't as expensive as they once were but even so, few people would describe them as 'cheap'.

Although the price differentials have eroded somewhat they're still likely to be more expensive than a roughly comparable centre-mounted mower and that means you may well have to think carefully about how to pay for one. So, if you're anything other than rich, read on!

The Basics of Economic Purchasing

Some people think that the cheapest way of buying something, including zero-turn lawnmowers, is to pay by cash if you have it available. It seems to be a no-brainer.

As a point of technicality though, they may wrong.

Let's say you have your cash currently invested and its earning you (e.g.) 2.5% net interest. If you take that out to pay for a new lawnmower, then it's no longer earning you that interest so that is a 'loss' to you even though you now have a capital asset in the form of a new mower.

The cost to you is, therefore, the purchase price of the mower plus that 2.5%

By contrast, if you were fortunate enough to get a zero-interest purchase deal from the provider or manufacturer, then you'll be far better off purchasing it on finance rather than using your own capital - assuming everything else is equal.

Your Options

So, here are some options for funding that new zero-turn lawnmower.

• Use your own capital. See the above discussion though and only consider this if firstly you're sure you won't need the capital in an emergency and secondly it would cost you less in lost interest than you'd be paying in interest through other channels.


• Dealer's or Manufacturer's Finance. This type of loan (which is what it is) may be amongst the easiest to get, assuming you have a reasonable credit history. At one time, the interest rates charged here weren't always amongst the most competitive but that's changed a lot in recent years. You might also get some extras thrown in too.


• Bank Loan. An old favourite and once upon a time both not too difficult to get and probably also one of the cheaper options in terms of interest rates charged. This has a changed a bit since the financial crises of 2008 onwards and today it's more dangerous to generalise. Today, many banks are MUCH tougher on acceptance criteria and their interest rates can't be assumed to be the cheapest around. They can also be sluggish in terms of decision-making.


• Credit Cards. Not that many people might have sufficient credit to fund a major purchase of this magnitude. If you do, make sure you understand the credit cost implications. Credit cards are typically one of the more expensive ways of borrowing money.


• Private Finance Companies. These aren't the 'loan sharks' they once were and many are reputable and regulated concerns. They are though, also often expensive in terms of their interest charges and watch out for punitive charges if you fall in arrears even by a day or so and only once.