New Truckmount finance and leases

[Mikey P]

I hear it's damn near impossible to get into a new machine theses days unless you have a 800 or better credit score.

Hydromaster is the only one out there righting there own loans with all that Danish moolah.


Who besides JB has gotten a new unit this year on a loan or lease?

 

[Becker]

I know of a few guys trying to dump their leases.

Good luck to them, unless they are gunna carry the paper.

 

[Doug D]

I got a van and machine on a lease last November from Interlink Finance Service(which I will never recommend again). My scores I think are around 740.

 

[Bill G. Martin]

please tell us more about the Interlink lease pitfalls

 

[Doug D]

please tell us more about the Interlink lease pitfalls

First they didn't know about the sales tax laws here in SD. SD has a lease law for sales tax. Instead of 600 dollars on just the van,to be paid, I had to pay in 1800 dollars for both the van and machine. They set it up wrong for charging me sales tax as well. It actually worked to my favor. Instead of paying sales tax of 6% for the machine during the course of the lease, I had paid the 3% sales tax for the vehicle and machine. After the contract was signed and I picked up the van and machine, they sent a new contract out with a higher amount to be paid each month. They claimed that I didn't pay the sales tax and that they had paid it. After we finally had everything squared away, they were to give me credit for the hassles for chemicals or anything I wanted at my distributor in Billings to which they know nothing about!! Micah R. was in on this and I had told him about the credit. Anyways, Micah is not working there anymore and told his replacement about it and he knows nothing. The other day, my payment was a couple of days late(first one ever late) lady calls me up asking about it. Told her it was in the mail and should be there either that day or the next. Also asked her about the credit and she said that there was nothing written on the account. Guess I will kiss that credit goodbye!!

 

[randy]

Things have definitely tightened up on the lease/finance front and it's going to be more of a permanent change then a passing phase. Easy credit to poorly qualified candidates got our economy where it is today and it will take years & years for there to be much improvement. I look to see many more truck mount makers to go out of business over the next 6-24 months. White magic, Steam action, and a bunch of small manufacturers that have been cranking out crap for years will be among those to disappear. Many others will consolidate their lines and / or merge with better financed companies. Not very many manufacturers of truck mounts can go through much more of a depressed market and survive, thus we will end up with a lot less choices .The day of the bigger and bigger new units hitting the market is over as there just isn't a market for them. Easy credit created the illusion of a market for over priced and over engineered equipment that was really never there. Thus there is an enormous amount of used, low hour equipment on the market. Guys buying new are going with much smaller units now. Sales of units in the Prochem Legend or Judson TNT class will dominate the market in coming years and PORTABLES will comeback strong. When I look at some of the portables like the Namco Beast & Mytee M-5 and compare them to the 55 PSI unit I started with nearly twenty years ago (when with lots of work & a rotary scrubber we could get great results) I have to laugh. I wouldn't hesitate to start a carpet cleaning business today with a Whittiker CRB & a MYTEE M-5 and have no plans for larger equipment. That's the new competitor in this industry. The start up that for less then $5,000 can compete very well against anyone on this board regardless of the equipment they run. That guy can finance his operation with a severance check or his credit card, have little debt to service and clean the clocks of the over leveraged operators with huge payments to make.

 

[Lee Stockwell]

I posted my "End of the Truckmount Era" thread in early 2006 on a declining board. It was met with ridicule by a bunch of guys whose company is no longer in business.

Randy's post is right on the money.

Thanks,
Lee

 

[Mikey P]

Randy should be getting a job offer from Sapphire by 12pm Tuesday

 

[steve frasier]

I was told Kip don't do leases anymore

local supplier sold a Titan machine the other day but that was the first new machine they have sold in several months

 

[Mikey P]

Yep, Country Wide got out of vehicle leasing.

 

[Kevin. McCreary]

Just pay your bills on time and have good lease/loan history, put down a reasonable down payment and I don't
see much of a problem getting a lease. I just did one a few months ago. I think Randy is correct though, but the way
its going to be now is the way it was intended to be before the banks started making it look like you could get something for nothing.
The cool thing about it is, if you are already established in the business; hopefully it will prevent or discourage moonlighters and your
neighbor who borrows 5 grand from Grandma to enter the business and compete with you. Hooray for increasing your prices more!

 

[Chris A]

Interlink Financial is the loanshark of the industry. My experience has been similar to Dougs.

 

[Lyman]

New butler in april, my third one. I try every four years to trade. This year was a little bit of a pain in the ass with the new finance guy. They are using soveryn bank out of new york.