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I Need A Truck, Banks Are Not Lending Money

Discussion in 'Trucks and Trailers' started by mcw615, Mar 7, 2010.

  1. mcw615

    mcw615 LawnSite Senior Member
    Posts: 473

    This is my 3rd OFFICIAL year going into business. All 3 years have shown a profit. I am 20 years old, and my business has been very successful so far. I have a great credit score, just not a long lengthy history.

    I have about 70,000 in liquid assets, with about 10,000 in liabilities.

    I pull a 7.5x18' 7k Holmes Landscape Utility Trailer ALL WITH A 2000 CHEVY 1500 SILVERADO 4.8L.

    This truck is NOT going to make it but two months max this year pulling this equipment. I have been laying low with growing because I have had to save for months and pay for equipment out of cash pocket, and I have a great set up, just a poor embarassing truck that can't fulfill our company.

    My parents have helped me a lot and have co-signed for when I purchased two toro z master diesels in the fall of 08 for 23,000, I have paid it down to between 9k-10k. My parents credit are tied up, and I REALLY need an F250 diesel for around 12,000. I have applied at a few banks, they said to them because of my age and the available credit I have on my Toro account, that comes back as a negetive because I have an available $13,000 credit limit and not a long credit history other than all payments have been made about a third more than the minimum payment. It made no sense. They said it used to be policy to have atleast 3 years of tax returns, but they said because of the govt cracking down on banks they have changed policies to min. 5 years. It's not like we can't afford a truck payment.

    DOES ANYONE KNOW OF ANY LENDER THAT LOOKS AT THE FINANCIAL SITUATION AND NOT JUST A CREDIT HISTORY??????????
     
  2. MikeKle

    MikeKle LawnSite Platinum Member
    Posts: 4,253

    Here is an idea that may or may not work, go join a local credit union, and wait a couple of weeks then apply for a truck loan, but instead of putting down you need $12K, put down you are applying for a $25K vehicle loan. IF your credit is fairly good, but the amount of credit is the problem, the credit union will consider you loan, and they will probably come back with a counter offer for you, usually it is around half the amount you would be looking to borrow in the first place, which would be around $12K. This happened to me when I applied for a mower a couple years ago, my score wasnt great, but not bad either, I had applied for $8000. signature loan, and they came back saying they could not loan me the full $8K, but made me a counter offer to approve me for a $4K loan. I ended up not excepting it and got another mower, but this idea may work for you.
     
  3. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    That is NOT going to work. You can submit a loan app all day long for whatever amount you want. As soon as the bank asks what the loan is for, they will decline it. They are not going to loan you 25k for a 12K truck. They are not going to loan you half that. At best, they might go 6-8K on a truck that's worth 12-14K.

    Your best bet is to go to a car dealer and trade in your current truck. They can change numbers around to make it work.
     
  4. SangerLawn

    SangerLawn LawnSite Senior Member
    from indiana
    Posts: 736

    You may consider buying new. Yes the over all truck prices will be higher but with the deals that dealers are offering now your payments won’t be that bad. We just bought a car for my daughter at a dealer and of course while I was there I had to ask about some trucks. They had new heavy duty trucks for 0 percent financing, 0 payments for 60 days, and the payments were over a 72 months time period. A used truck is going to run you depending on credit 3 percent – 15 percent then they will only loan for 48 months.

    When you break that down you will find that you will only be paying a little bit more every month on a new compared to used. Dealers also have a better chance of getting you accepted compared to your local bank.
     
  5. corey4671

    corey4671 LawnSite Silver Member
    Posts: 2,931

    wrong again. better off to sell you current truck outright. put that with some cash and move up.
     
  6. Mowingman

    Mowingman LawnSite Platinum Member
    from Texas
    Posts: 4,647

    Find an older 3/4 to "work" truck ,and pay cash for it. Lots of early to mid 90's ford F250 Powerstrokes out there. If you do not need 4x4, then you can find a bargain. Watch Craigslist.
    Here is town, for example, there are 2, 1997, F250 pickups for sale, both are solid older trucks, nothing fancy, and priced under $4000.00. Just yesterday, I sold an F350 diesel crewcab pickup for $2400.00. high miles, but lots of life left.
    find something cheap, but solid, that you can pay cash for.
     
  7. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Posts: 7,053

    Sure he could sell his current truck outright. He'll have to wait for a buyer though. Then he'll have to find a big chunk of cash (reason for this thread) to buy a truck. He'd be better off trading it in rather then wait what could be months before he could sell his truck. Or as Sanger mentioned, trade it in on a new truck. You definitely will have a better chance of getting the loan approved.
     
  8. yardatwork

    yardatwork LawnSite Senior Member
    Posts: 645

    Credit Union is the way to go. I can call my credit union on a Saturday (when all other bank loan departments are closed) and within five minutes I can have damn near any amount I want. Now, I'm also 34 years old and have a strong line of credit. I just paid off some business loans, a vehicle, and a small personal loan. Two weeks later the credit union sent me a brochure to apply for another vehicle...even though I didn't request the application! Anyway, check into their VISA line of credit. It's like a personal line of credit that you can use for whatever. I was able to get the max of $20,000 so I did. It is my emergency account and the interest rate is only 4.9% on all purchases. I can even issue checks to people through this account. Check into that. There is no need to know it's for a vehicle. Plus the payment is adjustable based on the amount of debt you owe. Also if you have cash in hand...put money down up front. Show the bank that you have the money. Sometimes paying cash is great, but it also can bite you in the ass...due to the credit issue. Put your money in the bank and ask for a loan from that bank. They will pull your account and see that you have "x" amount of cash in saving or a money market or checking account. A bank is all about percentages.
     
  9. MikeKle

    MikeKle LawnSite Platinum Member
    Posts: 4,253

    I did not mean for him to apply for $25K for a $12K truck, He should simply put in the loan application that he is applying for $25K for a 2008 or 2009 newer truck that IS worth that much, then when they check his credit, and decline him for the $25K, they may come back with a counter offer for around what he wanted to spend in the first place. This played out for me with a credit union, but it was not for a truck. Then again, he may be able to sell his current truck and buy something heavier that will be a decent truck for him, There is plenty of $4K trucks out there with alot of life left in them. A early 90s Ford F250 or 350, early to mid 90s chevy GMC 2500 too. There is plenty of these trucks out there. I would go with a diesel though, as long as it has been taken care.
     
  10. Raymond S.

    Raymond S. LawnSite Senior Member
    Posts: 977

    I've got 2 used if you're interested. 94 F250 gas w/ 120k & dump insert. 95 F250 diesel 150k 7'6" Western plow. Located at MI/IN border
     

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