# Loan for a cargo van..



## RIVETER (Sep 26, 2009)

Glock23gp said:


> I am starting to accumulate tools and info for starting my own electrical shop. I went to purchase a cargo van the other day and was told by 3 banks that I needed a "buisness" auto loan (which i assume takes 2-3 yrs of established buisness credit) for a cargo van and that no matter what credit score I have they dont do "personal" loans for them.
> 
> 1. Is this everyone else's experience as well (or am I asking the wrong banks)?
> 2. When starting a new shop is it best to work out of truck and canopy "which sucks" or buy a cheap piece of crap van with cash and pray it doesnt break down (or worry about public image)?
> ...


There has got to be another, underlying story here.


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## macmikeman (Jan 23, 2007)

Don't go to a bank, go into a car dealership, and drive away with a new van, unless your credit score is minus 50 or something along those lines. The dealership will secure financing for you. Of course it helps even more if you are anything other than a white male citizen. Others get special'er treatment...


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## RIVETER (Sep 26, 2009)

macmikeman said:


> Don't go to a bank, go into a car dealership, and drive away with a new van, unless your credit score is minus 50 or something along those lines. The dealership will secure financing for you. Of course it helps even more if you are anything other than a white male citizen. Others get special'er treatment...


Come on Mac. You are better than that. I like you but that's not funny.


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## macmikeman (Jan 23, 2007)

RIVETER said:


> Come on Mac. You are better than that. I like you but that's not funny.


Not joking, just sarcastic. http://www.foxnews.com/story/2007/05/08/study-minorities-pay-higher-interest-rates-on-auto-loans/


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## RIVETER (Sep 26, 2009)

macmikeman said:


> Not joking, just sarcastic. http://www.foxnews.com/story/2007/05/08/study-minorities-pay-higher-interest-rates-on-auto-loans/


Gottcha.


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## Glock23gp (Mar 10, 2014)

There is no underlying story. Banks all said the only purpose for cargo vans is work and they are willing to do loans on passenger vans. Didnt give one my name or credit info so it wasnt personal.


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## aftershockews (Dec 22, 2012)

Glock23gp said:


> There is no underlying story. Banks all said the only purpose for cargo vans is work and they are willing to do loans on passenger vans. Didnt give one my name or credit info so it wasnt personal.


Just tell them you can fit more bodies in a cargo compared to a passenger.


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## 99cents (Aug 20, 2012)

Yeah, go directly to the dealer. They seem to know how to fast track things with the banks. All they want is to get you approved and your signature on a contract before you have time to think.

It seems silly that you can buy a truck with no problems but not a van.


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## HackWork (Oct 2, 2009)

I'm glad the bank didn't give a loan to a G-23 fan. Glock 19 FTMFW.

:thumbup:


What about getting the business loan but also co-signing for it personally (so that you don't need the 2-3 years of established business)?


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## 480sparky (Sep 20, 2007)

Glock23gp said:


> There is no underlying story. Banks all said the only purpose for cargo vans is work and they are willing to do loans on passenger vans. Didnt give one my name or credit info so it wasnt personal.


Tell the bank you are going to use the van to hire your crew from the parking lot of Home Depot every morning. :laughing:

j/k. Go to another bank, or get financing through a credit union or at the dealership.


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## flyboy (Jun 13, 2011)

Buy a cheap second hand truck and stay out of debt until you know for sure that being in business is for you. Budget in a new truck into your business plan.


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## Service Call (Jul 9, 2011)

flyboy said:


> Buy a cheap second hand truck and stay out of debt until you know for sure that being in business is for you. Budget in a new truck into your business plan.



I might have to disagree on this. IMO a new business needs reliability. The last thing you need is to go out to leave and there's a problem with the "cheap"van. Plus showing up in a new van says more about your company than the old phone company van you were able to pick up at auction for 1k. 


Sent from my house using 2 cans and a string!


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## Jhellwig (Jun 18, 2014)

Service Call said:


> I might have to disagree on this. IMO a new business needs reliability. The last thing you need is to go out to leave and there's a problem with the "cheap"van. Plus showing up in a new van says more about your company than the old phone company van you were able to pick up at auction for 1k.
> 
> 
> Sent from my house using 2 cans and a string!


Going into debt to buy a van for a business that isn't even making money yet is a really dumb idea. What does it matter if you have a shiny new van and shines new tools when you can't feed your family?

You can find used cargo vans by the boat load that aren't beat up and run good. New vehicles break also.


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## CADPoint (Jul 5, 2007)

Don't you have a go to mechanic that can look over anything that you might
buy and tell you the things that are aged and the future repairs within
the life cycle of the Truck.
I know if I go to a quick lube (example) they always have a screen of things that needs to be done due to mileage or age!
If the owner is a larger concern most have vast records of repairs and then
there is always Carfax.
Go Luck!


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## Switched (Dec 23, 2012)

We are 5 years in and I would not purchase new. I have bought 3 vehicles all with around 100k miles on them. Yes we have had some mechanical problems but as was already mentioned, so do new vehicles. 

There are a ton of used lease returns with 60 to 100k on them for well under $18k complete with racks and bins. Why drop $30k on a new van and upfit it for another $5k to $8k when most vans will go 250k miles easy.


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## HackWork (Oct 2, 2009)

Everyone has their own opinion on whether they should buy new or used, but I don't think it's fair to call one side really dumb. 

I took a very substantial amount of money out of the bank in order to buy and outfit my new truck when I first started out and I'm glad that I did. Every time I use that truck I think of how awesome and productive it is. 

I will take care of it very well which will lead to a better chance of having good reliability. I don't want to take the risk of buying someone else's problems. That's just my opinion and I'm happy with the results.


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## LGLS (Nov 10, 2007)

I agree, don't buy new. You lose at least 5K the moment you first turn the ignition. Then it's all downhill from there.


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## HackWork (Oct 2, 2009)

IslandGuy said:


> I agree, don't buy new. You lose at least 5K the moment you first turn the ignition. Then it's all downhill from there.


That may have been true many years ago, but I don't think that really applies today. Used vehicles, especially trucks, hold their value so well nowadays. People who used to buy one or two year old vehicles in order to save money are now finding it better to just purchase new since the price difference is so small.


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## Service Call (Jul 9, 2011)

As I stated, this was my opinion. I started with buying the first two used. After things that go out with out warning (freeze plugs, oil pumps etc) I decided new was the way. Of course things can go wrong (murphy's a good friend) that's why there's a warranty. At least it won't come out of my pocket. After that I bought a new van every 3-4 years. This one I may keep awhile longer. 


Sent from my house using 2 cans and a string!


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## MHElectric (Oct 14, 2011)

When it comes to a vehicle - Never, never, never buy new!

I bought a used GMC Safari to start out. I used it to haul around my family, and it also doubled as a good work van for a few years. Got it with 75k miles for around $5k. I loved that van.


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## Bootss (Dec 30, 2011)

Look up your local phone company or utility company, gov. see when they're having auctions and buy one of those vans.


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## 480sparky (Sep 20, 2007)

Service Call said:


> ..... that's why there's a warranty. At least it won't come out of my pocket. ........



You honesty is believe that? :blink:


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## Bootss (Dec 30, 2011)

I bought this '07 f150 super cab fully loaded from a truck rental dealer for $13,000 40,000 mi. 3 yrs. ago.
Got the shell from a used car dealer for free,I got a bunk bed in the back just in case go to the beach or go fishin.
:thumbup: :laughing:


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## Glock23gp (Mar 10, 2014)

I agree with you all on the dealership for financing however I have a full time job as a maintenance electrician and will not be leaving it for at least a couple years and the van I wanted was from a retiring electrical contractor. 2005 with 130k garaged every day and has racks and bins. I live a debt free lifestyle and wouldn't consider purchasing new (saw a beauty at a dealership yesterday that had the big covered utility box $44k)


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## Switched (Dec 23, 2012)

Lep said:


> View attachment 51105
> 
> 
> I bought this '07 f150 super cab fully loaded from a truck rental dealer for $13,000 40,000 mi. 3 yrs. ago.
> ...


Awesome Lep, it drives vertical!

There are really good deals to be had if you look, no sense getting into debt to appear professional. Be neat, clean, on time and do what you say. In no time you will be able to afford an upgrade with cash.


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## Service Call (Jul 9, 2011)

480sparky said:


> You honesty is believe that? :blink:



Your sentence structure is a little rough but, yes. 


Sent from my house using 2 cans and a string!


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## Ty Wrapp (Aug 24, 2011)

Lep said:


> Look up your local phone company or utility company, gov. see when they're having auctions and buy one of those vans.


As a retired phone guy, I can tell you, those vans get trashed. I went thru a set of front tires once a year. Told the mechanic that it needs a front end alignment so the tires will last longer than 1 year. Too expense.

I would only buy a van to wreck out the shelves and ladder rack.


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## Switched (Dec 23, 2012)

Ty Wrapp said:


> As a retired phone guy, I can tell you, those vans get trashed. I went thru a set of front tires once a year. Told the mechanic that it needs a front end alignment so the tires will last longer than 1 year. Too expense.
> 
> I would only buy a van to wreck out the shelves and ladder rack.


Two of my neighbors work for AT&T and they said the same thing...."Never buy one of our used vans, we beat the hell out of them".

After seeing them around town I trust them on that one!


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## wildleg (Apr 12, 2009)

1. shop the price on the used/new vans, as well as the interest rates and downpayments they are offering.

2. shop the price on a 2nd or line of credit on your house, and get the actual cost of what it will be out the door (they tend to leave off a bunch of fees).

3. decide which suits your needs better.

(deducting the interest for each scenario can get a little complicated but your tax guy/accountant might be able to explain it:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Deducting-Business-Expenses)


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## 480sparky (Sep 20, 2007)

Service Call said:


> Your sentence structure is a little rough but, yes. ......


Believe what you want, but you paid for it already.


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## Service Call (Jul 9, 2011)

480sparky said:


> Believe what you want, but you paid for it already.



Yes I did, and you don't see me complaining and I've been doing this for 21 years. 


Sent from my house using 2 cans and a string!


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## macmikeman (Jan 23, 2007)

Never go second class. Buy new and charge large to pay for it. Keep that mentality going all the way to the end and you will end up on a sunny beach in the tropics, while the second hand crowd has to raise chickens to make ends meet.


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## Bootss (Dec 30, 2011)

Ty Wrapp said:


> As a retired phone guy, I can tell you, those vans get trashed. I went thru a set of front tires once a year. Told the mechanic that it needs a front end alignment so the tires will last longer than 1 year. Too expense.
> 
> I would only buy a van to wreck out the shelves and ladder rack.


Well if you need a cheapo take a look


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## Bootss (Dec 30, 2011)

Switched said:


> Awesome Lep, it drives vertical!
> 
> There are really good deals to be had if you look, no sense getting into debt to appear professional. Be neat, clean, on time and do what you say. In no time you will be able to afford an upgrade with cash.


I like my free shell :
Same color (although it was made for a Chevy) fits perfect

The used car dealer slapped the shell on there and said goodbye (they said it was in their way)
:thumbup::laughing:


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## 480sparky (Sep 20, 2007)

And on the flip side, there's people who will not hire you just because they see your shiny new wheels and think, "Damned if I'm gonna help pay for his $50,000 fancy truck". So they hire some guy in a rust-bucket _who can install the electrical every bit as good as you do_.

Moral of the story: What you drive isn't important.


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## PetrosA (Feb 18, 2012)

I don't know why so many people take the new-or-used argument so seriously. Who even thinks about spending a few weeks to buy used tools when you need them? A truck is a tool, and like any other, decide what you need and buy the best you can in your price range. 

Some things to consider:

What kind of mileage will you be putting on your truck? 5k, 8k, 12k, 20k or more per year? Consider the fuel costs and how you will recoup them from your billing.

How much stuff do you need to have at hand all the time? Do you work in an area with lots of suppliers or do you have to drive 45 minutes to the nearest supply house? This will influence what size vehicle you need to carry basic stock.

What kind of weight will you be carrying regularly? Do you need to haul lots of wire or just some? How many people will be working out of the truck and how many tools will be in there all the time? 

All this leads to how I think about buying a truck, which is buy the smallest, most efficient vehicle that will satisfy your needs. You can get a box truck, carry everything that HD stocks and more, but pay through the nose for fuel and maintenance because your jobs are all over 20 miles away and you have four supply houses along the way, or you could get a Transit Connect or Chevy/Nissan/Dodge mini van and wreck the suspension hauling way too much weight around in it. Figure out what's adequate for what you do and get that.


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## heavysparky (Jun 2, 2009)

Have you googled buy here pay here commercial car lots? There are some that seem to have a good selection and the payments were really affordable.


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