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You’re proud of your yard and will do what it takes to keep it looking good. But what do you do when your trusty old lawn mower kicks the bucket, and you don’t have the cash to buy a new one? Is your only option to let weeds take over until you save enough to buy a mower?Not necessarily. You may be able to get financing to purchase the mower you need (or even a fancy upgrade) without paying a lot in interest. Options for lawn mower financing include in-store financing, leasing, credit cards, and personal loans. Here’s what you need to know to get a new mower without having to come up with the full purchase price in cash.
Lawn Mower Financing Explained
Lawn mowers can be pricey. In fact, ride-on mowers can easily run well into the thousands. Fortunately, it’s often possible to get financing for a lawn mower purchase. This may be available directly from the seller. Or, you may be able to get a small personal loan to finance a lawn mower. Personal loans can typically be used for any purpose, including home improvement projects. And, they work like other types of loans: You borrow a lump sum of money, then pay it back (plus interest) in monthly installments over a fixed period, which could be a year or more. Personal loans for lawn mowers are available through many banks, credit unions, and online lenders.
Lawn Mower Financing Requirements
All types of lawn mower financing will come with qualification requirements. Lenders and creditors typically want to see a certain minimum credit score and monthly income. They will likely also consider your debt-to-income ratio (DTI). This is represented as a percentage and shows how much of your gross monthly income currently goes toward monthly debt. Lenders typically like to see a DTI of less than 36%. If you’re applying for a secured personal loan, you may also need to show proof of collateral (an asset) that you can use to secure the loan.
5 Lawn Mower Financing Options
So how can you finance your lawn mower purchase? Here are five options to consider.
Credit Cards
If you’re buying a mower that just costs a few hundred dollars, you might consider charging it to a credit card. Just keep in mind that credit cards typically come with high interest rates, which could make this a costly form of financing if you can’t pay off the balance quickly.Some credit card issuers, however, offer introductory 0% annual percentage rate (APR) periods for new customers with good credit. These promotional periods can last 12 to 18 months, which might allow you to pay for the mower in full without paying any interest on your financing.
2. Leasing
This option for mower financing is more applicable to a riding lawn mower or tractor. Rather than buy the mower outright, you may be able to lease it for several years. The benefit is that your monthly payment may be lower than it would be if you financed it through a loan. What’s more, you won’t have to worry about maintenance, and, at the end of the lease period, you can turn the mower in and get a new one or buy it outright.
3. Tractor Loans
If you own a farm or other large plot of land and need a tractor, there are loans specifically for this purpose. Here’s an illustration of what you might pay each month if you were to get a loan with 3.24% APR for a tractor that costs $12,000.
Finance Amount
$12,000
APR
3.24%
Terms (months)
48
Monthly Payment
$266.90
Total Interest
$811.20
Total Cost of Loan
$12,811.20
4. In-Store Financing
Another option for push mower or riding mower financing is to work with the seller. Store financing typically involves opening a store credit card and using a special financing offer, such as zero interest for a certain period of time. If you fail to fully pay off the mower in that time frame, however, you may be charged interest for the full time period (dating back to when the date of purchase). If you’re considering this route, make sure you fully understand the terms of the financing and what interest rate you could potentially be charged.
5. Personal Loan
It’s often possible to get a personal loan to finance a lawn mower. Rates are typically lower than what you would get with a credit card. And, depending on the amount you borrow, you could also use the loan for other landscaping expenses, such as fertilizer, mulch, plants, or anything other equipment you need.Borrowers with excellent credit and a low debt-to-income ratio can usually qualify for the lowest offered APRs. If you have fair or poor credit, however, a personal loan could be an expensive option for financing a mower. Fortunately, many lenders and lending platforms will let you check your eligibility and estimated APR with a soft credit check (which does not impact your credit score). Once you decide to apply for the loan, they will do a hard credit check, which could temporarily affect your scores.Recommended: Personal Loan Tips That Can Help You Get Approved
Pros and Cons of Financing Your Lawn Mower
Financing a lawn mower has benefits, as well as drawbacks. Here’s how they stack up.
Pros of Financing Your Lawn Mower
Cons of Financing Your Lawn Mower
Helps you conserve cash
You’ll pay interest on the purchase
Allows you to buy more expensive equipment than you could pay cash for
Some lenders tack on high fees, such as origination fees and late fees
Good credit may get you a low interest rate
If you can’t pay the loan off, you risk negative impact on your credit
Pros
If you don’t have to pull several hundred (or thousand) dollars out of your checking or savings account to cover the cost of a mower, you’ll be able to conserve that money and use it for other expenses.Financing a mower may also allow you to buy a better mower than you might otherwise be able to buy if you were paying with cash. A better mower could mean less time mowing and fewer repairs. It might also last longer than a cheaper model, making it a worthwhile investment. Finally, If you have good credit, you may qualify for the lowest interest rates on a lawn mower loan.
Cons
Financing typically comes with costs. Even getting a low interest loan means you’re still paying more than the mower costs in the long run. The longer you finance the loan, the more you pay in interest over time.Some lenders also charge fees, such as origination fees and/or late fees that could add to the total cost of your loan.Also, keep in mind that if you aren’t able to pay off the loan, the mower or tractor (or other collateral you put up) could be taken from you, and you may see a dip in your credit scores, as well as a derogatory mark for defaulting on a loan.
Reviewing Personal Loan Options
If you’re interested in getting financing for a lawn mower purchase, the first step is to shop around and find out what rates and terms you may be able to qualify for. With Lantern by SoFi’s online lending tool, you can quickly compare personal loan offers from multiple lenders with just one short application.
Frequently Asked Questions
What credit score is needed to finance a lawn mower?
How long does lawn mower financing take?
What are the requirements for mower financing?
Photo credit: iStock/DjelicS
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About the Author
Susan Guillory
Su Guillory is a freelance business writer and expat coach. She’s written several business books and has been published on sites including Forbes, AllBusiness, and SoFi. She writes about business and personal credit, financial strategies, loans, and credit cards.
