commerical vehicle

[Tablo]

I have decided to buy a Ram promaster city 2020,    Its listed as a commerical vehicle so I have been told by BofA they don't  finnance those.
This is dumb question but can you purchase a cargo van (commerical)  for personal use and not have a business?    And if so where can I get
financing?  I feel so ... ignorant of this process its embarrasing.   

Been in a job I don't like for 20 years.  Enough is enough!   A van is my ticket to freedom.   I want out like a drowning man wants air.

I will be appreciative for any replies.
 
TY
B.

 

[Qxxx]

Three years ago I bought a used 1-year old Savana van from the local GMC dealer. They arranged financing for me with one of the dozen or so companies that they do business with, and the APR was quite low. My FICO score is over 800. Then I told my auto insurance company it was only for private camping use, and they said no problem. I did not ask them is insure any sort of internal RV build out. And it might help that I'm past retirement age, so they don't expect me to be starting any new businesses.

 

[MG1912]

I know you want out and are dying for freedom. I think everyone on this forum sympathizes with that sentiment. But a van will not be your ticket to freedom if you finance it. It will be another form of slavery. “The rich rule over the poor, and the borrower is slave to the lender.”

 

[MG1912]

Well, I suppose I should add something constructive, although I think it's plenty constructive to advise people not to go into debt. Debt, in all its guises, is bad. Maybe one can argue that educational debt and mortgages are "good" debt, but that probably also depends on what field of study and how much home one can afford, but anyway...

Here's a stab at something more concretely constructive: is there a reason this must be a new vehicle? You can save a ton of money by buying used. A vehicle loses 15% to 30% of its value the second you drive it off the dealer's lot, unless it's a highly-desireable model that isn't easy to find. So you might want to consider working a bit longer, saving some money, and buying something used but reliable in order to avoid a very avoidable and sizable automotive debt obligation. Many of us did just that and are very happy, in retrospect, that we didn't pull the parachute cord prematurely, despite how desperately we wanted out.

 

[kygreg]

I think each state will be different, check with your DMV. I bought a commercial step van to be registered in Kentucky. It was no issue, I just told them it was for personal use and done, same with my insurance company. I also checked with the DOT about maybe having to stop at weigh stations and they said, no, not for a personal use truck, regardless of its weight class. What they would not let me do it register it as an RV.

 

[B and C]

Save your money so you can pay cash. Debt is the devil in disguise.

 

[Qxxx]

If I were dying for freedom, I might sell my soul to the devil bankers to get it. I did so 2 1/2 years ago to buy my van, but as of last month I paid it off and am now totally debt free. And in those 2 1/2 years, I've spent 11 months on the road on many trips that saved me a bundle in motel costs. I estimate I've saved over $20,000 in motel costs, it paid for the van. (note I have physical issues that pretty much preclude sleeping on the ground in a tent anymore).

So maybe the bankers are just tools to be used like any other tools.

 

[MG1912]

Qxxx, you are very fortunate that it worked out for you to finance a van. Clearly, you were able to make all the payments, and you avoided a calamity that could have ended in a repo'd van, a mountain of debt, etc. So it was the good choice for your circumstances, and you deserve credit for that. But you took a risk that I would not advise others to take.

Many other people start this path with work that dries up or something else, and now they owe more on their van than they can sell it for, and it becomes their slave master. There are examples on this very forum of people who have quit vanlife entirely due to the lingering bitterness of such an experience.

You wrote, "If I were dying for freedom, I might sell my soul to the devil bankers to get it." That is a paradox. If you sell your soul to the devil banker, then by definition you are not free. To the contrary, you are now the devil banker's slave. That is the opposite of free.

 

[WalkaboutTed]

Apply to other lenders, they all have different policies. When we bought our first commercial van (Nissan NV), USAA Federal bank financed the van. When we bought our second van, they changed the policy to no longer financing commercial vehicles for private owners. Navy Fed wouldn't finance a commercial vehicle, but a local credit union did.

As far as "slavery" with a financed van, I disagree. I view it as paying rent. Otherwise we would still be staring at four walls of sticks and bricks. We don't regret financing freedom.
Ted

 

[tx2sturgis]

IF financing is the only good option for you, then do your best to pay about half (40-50%) down. The banks, credit unions, finance companies etc are often quite pleased to finance a vehicle if you can make this large commitment, and pay half down, and only finance about half of it.

Otherwise, with a minimum (or zero) down payment, you WILL be upside down on the note for a substantial period of the loan.

IF you only finance about half, then your payments will be smaller, the loan period will be shorter, and you will be less likely to default from the lenders point of view, and less likely to want to lose all your equity value in the vehicle, since it is already half way to being yours on your very first payment. 

In my opinion (and that is all it is) if you cant afford at least HALF of the vehicle with cash you have on hand, you are buying into something that is possibly way past your ability and likelihood to pay off.

Good luck on this!

 

[Qxxx]

Qxxx, you are very fortunate that it worked out for you 

Jeez, you make it sound like it's all about luck.

For one thing, I've had to budget my money every month for the past 10 years. Last month, my scribbling took up a full page of 4 columns. And I've almost been killed twice in that van by idiot drivers, both times on a freeway. What saved me was paying attention (plus I avoid LA now). 

In regards people who have tried vandwelling and reverted, well it's not for every body, and it's not a panacea for those with serious medical or financial issues. And as Bob is always saying in his videos, he can't work miracles, and neither can I. I just run my own life as best I can.

 

[MG1912]

We don't regret financing freedom.

Far be it for me to tell anyone else how to live their lives, and as Qxxx wrote about, we're all just running our own lives as best we can.  If what you're doing is working out for you, then I'm happy for you. However, since this is a public forum and people come here for ideas and advice, I will, with all due respect, rebut your statement.

I feel very strongly that one cannot "finance freedom."  That's as bad an oxymoron as "government efficiency," in my view.  Debt is slavery.  If you have debt, then you are slave to a lender.  Now, sometimes debt (and the associated slavery) is unavoidable, but in the case of purchasing a vehicle, it is usually avoidable.

We are all just expressing our opinions here, and my opinion is that if someone can't afford something outright, then the wise option is to save until they can afford it, to the extent possible, or to go without.  Freedom and slavery are not compatible.  You can't have both at the same time.  Just my opinion.  You are free to have your opinion.

 

[Qxxx]

The thing about an auto loan is, it only goes for several years, not for the rest of yer life.

I sold my soul to the devil banker, but also bought it back after 2 1/2 years. Now I'm debt free and got to travel for 11 months along the way. No way in hell (sorry devil) I would ever give that back.

 

[WalkaboutTed]

Paying rent=paying mortgage=paying van (home) payment. We're gonna pay one way or another. It would be nice if we could afford to own our home free and clear. But we ain't in that position. We have enough fixed income to make the van payments (at 3% interest) easily.

Plus rent where we were living (Tucson) is well over double the van payment. Freedom to travel vs not being able to afford rent AND traveling? Give me the former.
Ted

 

[crofter]

The motivated dealer will find you financing. These guys have a lot full of used cargo vans out back for much less money, and finance these also. Russ Ficek is the good van salesman there. The used cargo vans are advertized on cargurus.com or you can call them and ask for Russ.

Description: link to dealer sites.
https://www.nwjeep.com/

https://www.cargurus.com/Cars/inven...RE&entitySelectingHelper.selectedEntity=d2229

I do not reccomend going into debt if you are not working, or want to stop working. YMMV.

-crofter