Buying and renting

deerejohn · Dec 15, 2005

I would love to own a compact tractor. Unfortunatley my current fiscal limitations are getting in the way. I have thought about getting one on the zero down, zero percent plans offered and renting it out a few days a quarter to pay the loan off. Every time I go the local rental store their tractor is booked for weeks in advance. They charge $275/day with delivery of between $30 and $125 (depending on distance from shop). With rental fees like that I would need to rent it out 15-20 days per year to pay the loan.

Has anyone had any experience with this type of program. Certainly there are pitfalls (damage to tractor, etc)...Does use in rental programs void warranties on new equipment?

I would like something in the 25-30 HP range, HST, FEL, backhoe, and possibly snow blower.

cast_and_blast · Dec 15, 2005

The idea is sound, but you better check out insurance for an operation like that.

Someone rents, gets hurt (or worse)...guess who they come after?

My guess is that the liability for something like that (not to mention the taxes on that income) would probably outweigh the gain.

Good luck!

Scott

Dmace · Dec 15, 2005

How many posts do we need about the same thing ?

Same posts here

daTeacha · Dec 15, 2005

Have you considered hiring yourself and the tractor out instead? Strictly as a friendly operation, mind you. As in "I'll plow out your drive for $30, cash" or barter/trade work with some guys.