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Making a large purchase
#14549625
11/29/22 04:02 PM
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Joined: Jun 2011
Posts: 6,321
Dave-0
OP
DYSON
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OP
DYSON
Joined: Jun 2011
Posts: 6,321 |
So, need some collective input. I'm wanting to purchase a large dump trailer as a investment/asset. I'mma have to borrow the money, but it's the cheapest money I'll ever have to borrow. This would be a large purchase that would not break us by any means, but still, it's gonna be a big pill to swallow. I've watched auction houses and used trailers are going for every penny of, if not more, than a brand new trailer (blows my mind) so I might as well order what I want and use the chit out of it. I know I can make money with it and pay off the loan. I'm wanting to do this NOW so I can start getting my name out there for the busy spring season.
Here's my problem. Everybody is screaming of a recession coming up. A LOT of indicators of such, are going off like signal flares, but I want to get this going. I've waited for 9 months now with out pulling the trigger and it's like now or nothing. Been listening to people spouting off the doom and gloom forever about were heading into a depression to rival world history. Hasn't happened in the last 9 months I've been hearing it. All these rumors about the entire continent is going to run out of diesel in 23 days...which was over 30 days ago and diesel has done nothing but fall in prices so far.
Would you be willing to make a $17K purchase (that you know you can make money with) right now? Like I said, not going to really hurt us financially, but it's not a small bump in the road either. Would really appreciate the OT's opinion.
Laws won't fix a sin problem. What this world needs is a revival, change of the heart. ~The Skipper
Age is a number. Old is a lifestyle.
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Re: Making a large purchase
[Re: Dave-0]
#14549631
11/29/22 04:10 PM
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Joined: Jan 2005
Posts: 17,060
Pat Goff
TFF Guru
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TFF Guru
Joined: Jan 2005
Posts: 17,060 |
There's a lot of businesses that are recession proof, or at least resistant. Look at the market, the competition, and decide if the economy goes tits up, are you still in need?
Pat Goff Seadrift TX
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Re: Making a large purchase
[Re: Dave-0]
#14549642
11/29/22 04:21 PM
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Joined: Aug 2006
Posts: 18,134
COFF
TFF Guru
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TFF Guru
Joined: Aug 2006
Posts: 18,134 |
Some questions you need to answer for yourself:
1. What additional costs will be required beyond the purchase of the truck? Storage, maintenance, additional equipment, labor, fuel... 2. What do you need to break even and make money? 3. Who are your customers? a. if individual consumers, will this be a service they still use if they lose their job? b. if corporate entities, are they in industries that are likely to be hit hard by a bad economy? 4. What is your competition? Can they squeeze you out, either by underbidding jobs, or through better market placement?
Don't feel like you have to answer this on the forum. These are just generic questions that could apply to any business venture. Hopefully it gets you to look at this thing from all angles, not just through the dollar bill goggles you get when you have a big idea.
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Re: Making a large purchase
[Re: Dave-0]
#14549644
11/29/22 04:26 PM
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Joined: Aug 2008
Posts: 1,629
CaptainCrunch
Extreme Angler
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Extreme Angler
Joined: Aug 2008
Posts: 1,629 |
Buy it and get to work. Worst case, you can sell it for all or most of what you paid for it.
In my area, you wouldn't have trouble getting work, but you might have trouble finding help.
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Re: Making a large purchase
[Re: Dave-0]
#14549647
11/29/22 04:27 PM
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Joined: May 2003
Posts: 16,322
Chris B
TFF Guru
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TFF Guru
Joined: May 2003
Posts: 16,322 |
Things are certainly slowing down. I had electricians call yesterday and ask if they could come a few days earlier than I had scheduled them. Today I have eight electricians here doing a two man job. Supervisor said it was either send them here or home.
I hate photobucket.
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Re: Making a large purchase
[Re: CaptainCrunch]
#14549649
11/29/22 04:29 PM
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Joined: Mar 2006
Posts: 8,181
reeltexan
TFF Celebrity
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TFF Celebrity
Joined: Mar 2006
Posts: 8,181 |
Buy it and get to work. Worst case, you can sell it for all or most of what you paid for it.
In my area, you wouldn't have trouble getting work, but you might have trouble finding help. my thoughts. go for it.
"..The pleasantist angling is to see the fish Cut with her golden oars the silver stream, And greedily devour the treacherous bait. Bill Shakespeare
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Re: Making a large purchase
[Re: Dave-0]
#14549651
11/29/22 04:34 PM
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Joined: Jan 2010
Posts: 19,878
Emit R Detsaw
TFF Guru
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TFF Guru
Joined: Jan 2010
Posts: 19,878 |
Now or wait on buying. Other than sales, new will probably never come down since people are still buying at inflated prices. Used, well, if there is a recession, someone might look to sell off equipment and you might pick up a deal. But how much revenue will you have lost waiting on a deal?
Now or wait on Loan. Interest rates will probably keep going up for at least the short term. They might even go back up to where some of us olds remember them as normal.
Now or wait for using it for revenue. Once peoples belts tighten (if a recession happens) revenue might thin, but sometime there priorities shift from buying things to dumping things. Getting loads of gravel hauled in to do the driveway/roads. Selling their dump trailer, then having to rent or hire someone to do their project for them. Even in a recession there are opportunities. And, as long as you can still make the payments, you have an asset that once any recession is over that will probably get used a lot.
If I were you, I would do it now.
I pulled the trigger this year on several large ticket items. The backup generator for the house being the biggest once you added installation and new propane tank. Pulled the trigger because I had the money and the local Generac guy had one in stock so I didn't have to order and wait.
May you be treated the way you treat other people, today and everyday!
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Re: Making a large purchase
[Re: CaptainCrunch]
#14549658
11/29/22 04:44 PM
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Joined: Jun 2011
Posts: 6,321
Dave-0
OP
DYSON
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OP
DYSON
Joined: Jun 2011
Posts: 6,321 |
" Hopefully it gets you to look at this thing from all angles, not just through the dollar bill goggles you get when you have a big idea." LOL! I know exactly of what you speak. That's why I've been putting it off so long, thinking maybe that hair brained idea will go away. Opportunity is on the horizon and it's just as bright as ever. Construction business is booming down here in Cleburne and there is new houses and developments going up everywhere. But that's just a small slice of the pie. It was mainly going to be a side hustle. I have a lot to cleanup on my own property as well, which is what spurred all this to begin with. Buy it and get to work. Worst case, you can sell it for all or most of what you paid for it.
In my area, you wouldn't have trouble getting work, but you might have trouble finding help. That's honestly how I'm looking at it. So much to get done!
Laws won't fix a sin problem. What this world needs is a revival, change of the heart. ~The Skipper
Age is a number. Old is a lifestyle.
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Re: Making a large purchase
[Re: Dave-0]
#14549670
11/29/22 04:50 PM
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Joined: May 2007
Posts: 40,444
WAWI
TFF Guru
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TFF Guru
Joined: May 2007
Posts: 40,444 |
my business regrets are what I didn't do not what I did. If thats something you want to do then by all means march forward.
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Re: Making a large purchase
[Re: Dave-0]
#14549697
11/29/22 05:13 PM
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Joined: Jan 2004
Posts: 72,535
Mark Perry
Super Freak
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Super Freak
Joined: Jan 2004
Posts: 72,535 |
It's probably never going to be cheaper than it is right now.
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Re: Making a large purchase
[Re: Dave-0]
#14549703
11/29/22 05:21 PM
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Joined: Sep 2008
Posts: 121,172
hopalong
Pescador Loco
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Pescador Loco
Joined: Sep 2008
Posts: 121,172 |
I think there are a couple by me for sale. If not there are 2 mfrs close by also. Call buck dandy trlrs and get a quote (only a few miles from me and will custom build). Sitting at eye dr in denison now will look on the way home
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Re: Making a large purchase
[Re: Dave-0]
#14549710
11/29/22 05:23 PM
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Joined: Sep 2008
Posts: 121,172
hopalong
Pescador Loco
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Pescador Loco
Joined: Sep 2008
Posts: 121,172 |
Do you have ag exe.ption? If so it will save you a ton on sales tax
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Re: Making a large purchase
[Re: Dave-0]
#14549712
11/29/22 05:24 PM
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Joined: Sep 2005
Posts: 28,260
Brian Spagnola
TFF Guru
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TFF Guru
Joined: Sep 2005
Posts: 28,260 |
The answer is always YES.
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Re: Making a large purchase
[Re: Dave-0]
#14549716
11/29/22 05:25 PM
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Joined: Oct 2006
Posts: 95,578
Bigbob_FTW
Big Sprocket Bob
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Big Sprocket Bob
Joined: Oct 2006
Posts: 95,578 |
we're already in a resession.
FJB
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Re: Making a large purchase
[Re: Dave-0]
#14549732
11/29/22 05:34 PM
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Joined: Nov 2022
Posts: 1,967
Grasshopperglock
Extreme Angler
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Extreme Angler
Joined: Nov 2022
Posts: 1,967 |
I wouldn't buy it using someone else's money.
I'm my own bank. Borrow the money against a CD. My bank charges me 3% to handle the books.
The only creditor is me. I'm the buyer and financer. Any hit to the money....it's my money. I can repo it while it sitting in my yard. Sending late notices to myself.
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