Van financing

Discussion in 'Lets talk Business!' started by Louis, Oct 31, 2017.

  1. Louis
    Louis

    Supportive Member

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    Location:
    Modesto, CA
    Name:
    Louis
    So I have been trying to save up a down payment for a used van this year. Unfortunately things just keep happening and the money leaves my hands when I'm a few hundred away. I have been told that you need at least 20% down to buy a vehicle for a business. Are there other ways to finance with less down?
  2. Papa John
    Papa John

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    Location:
    San Francisco, CA.
    Name:
    John Stewart
    Yes.. it' easier to qualfy for a lease then a loan. However there are disadvantages to both loans and leases.

    Pros of a loan:
    The item is yours as long as you make your payments.
    You can lower your current year taxes if you take a Section 179 deduction-- meaning deduct the entire price off your taxes in the year you bought the item ( this might hurt in future years)
    If you are in the 50% total tax bracket- then it' like the govt paid for half the costs.
    Cons of a Loan:
    Payments might be higher then a lease.
    Harder to qualify for.
    Pros of a lease:
    Easier to qualify for, so you may be able to get better equipment.
    The payments might be loan then a loan.
    Don'
    Need a big down payment.
    Easier to get new equipment every 3 or so years.
    Cons of a lease:
    You can't take the Section 179 deduction.
    There will almost always be a big surprise in "Bend Over" fees at the and of the lease.

    Kip, who handles the leasing for bulter and i think aerotech, is wonderful to work with.
    I couldn't qualify for a basic TM/van setup but Kip got me into a Vortex instead.. amazing

    So give Kip a call, an maybe you will soon be driving a pimped out Aerotech or Butler.
    Good luck
  3. Bruce Humphrey
    Bruce Humphrey

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    Location:
    Bay City, MI
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    Bruce
    When purchasing our new van the bank would take our old(er) van as collateral for a lower down payment. Not sure if that applies to a used van. If I were you I would call a commercial lender and start asking questions , they would be more then glad to answer them.
    Mikey P likes this.
  4. Brian H
    Brian H

    Member

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    Location:
    Detroit Michigan area
    Name:
    Brian H
    I totally agree with John on giving Kip a call, he should be able to help you with either a lease or a loan!! We have been using him for years for financing our Butler truckmounts and could not be happier. He really does understand the needs of the carpet cleaner and the value that a good truckmount holds.
    Old Coastie and Bruce Humphrey like this.

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