my credit union won't finance a cargo van purchase..

[John61CT]

Just like insurance, it's all based on their statistical risk models.

Just because someone is a citizen type with stable work before they get a camper van, it's likely that factor correlates with a higher percentage going nomad can't keep up with payments and repo / judgements get a lot harder / more expensive across state lines.

 

[free2enjoy]

A year ago, I got an UNSECURED loan of $23,500 for a used 2016 Chevy Volt (Lemon law buyback) for 60 months at 1.89%. The funding was in my account the next day. I bought the car for $22,500 and used the extra $1000 to pay for shipping.

Give them a try? https://www.lightstream.com/

LightStream Bank

 

[mpruet]

I suspect that the reason that the credit union is balking is that they consider the van to be collateral for the loan.  They feel that if you do a conversion on the van that it will lessen the resale value and/or make it a bit more difficult to sell in the event that you default on the loan.

 

[breeze]

They are not telling you the whole story are they are a bad institution to deal with: from making too many bad loans before.

Banks NEVER give good loans, and are good just for free local checking accounts. As an engineer, I had to ALWAYS get 3 quotes and always learned from each encounter (a learning curve for every job.) Credit unions are the best rates and service, if you qualify for 3. And look on the net for all the deals in the dark corners.

Think outside the box and just figure out where you need to get to from your 3 (or more) quote experience above, and just figure out how to get to that point. You are not going to do impossible things so think realistically after you set your goals. Good luck.

 

[jacqueg]

..if my intention is to convert it.

Hi all,  I was hoping my first post here would be a happier one but I was disappointed to receive this news yesterday from my credit union and was hoping for some feedback from you all.  Longish story short, I applied online for a loan, was approved, but the pre-approval was revoked once they found out I intended to convert it.  I cut our phone call short yesterday because 1) I was at work and 2) I was disappointed.  

I guess my questions are: is this just a stipulation set by my credit union or are all banks this particular?  Obviously I will be able to get a loan somehow from somewhere, but do I need to by sly (not lie, just...not so forthcoming) about my plans for the van?  Were you all able to get regular car loans or did you have to go the rv loan route?  Why is my credit union being such a jerk (   ) ?

I'll call my credit union to see if there are any options (higher interest rate, lower loan amount, rv loan, etc), I'm just curious if any of you experienced something like this at the onset of your search.  Thanks for letting me vent a bit!

You can certainly camp/travel in a van without doing a conversion.

My platform bed, my storage totes and water containers, my lanterns, my camp stove, my house battery when I get one - they're just cargo! I could clear everything out in less than 30 minutes. 

I'd call them back, and find out what they are envisioning when they hear the word "conversion"! Maybe both you and they need to adjust expectations.

 

[Mizzi]

From reading everyone's posts on the subject of credit unions and bank loans on vehicles and aving them repossesd if and when the loans cant be made. The other factor to be minful of is if you do fall behind for what ever reason you do know that it'll cost these organisations alot of time and effort to try and reposses their items back since you'll not really have any fixed home address for them to find you. In other words they might think that you're a flight risk.

 

[frater secessus]

Re: the subject (but not content) of the thread, both Chase and SunTrust said they would not issue loans for cargo vans. Cap One did it happily.

 

[breeze]

From reading everyone's posts on the subject of credit unions and bank loans on vehicles and aving them repossesd if and when the loans cant be made. The other factor to be minful of is if you do fall behind for what ever reason you do know that it'll cost these organisations alot of time and effort to try and reposses their items back since you'll not really have any fixed home address for them to find you. In other words they might think that you're a flight risk.

Used car dealers can put mw transponders intermittently timed where not many could find it w/o great costs. If you ever buy a used car from a used car lot, you need to make sure they can't deactivate your vehicle's engine nor come an 'fetch' it when they want. Some are unscrupulous to be sure. With all the other things going on in life, this is something no one needs. 

But no, banks or used car dealers are not too worried about flight risks too much. They know exactly where the vehicle is and usually can stop it dead in it's tracks where ever it's parked. Credit unions don't usually do this though, because they are easier to own from them. But still, always plan to pay on time to be sure! You never know.  :huh:

 

[John61CT]

If your vehicle gets a device like that it's spelled out in disclosure forms as part of the loan contract.

In which you agree not to remove or disable it.

Their use should be regulated, major privacy issues.

 

[Artsyguy]

I purchased my used 2015 Chevy Express Cargo van in May. Originally, my bank approved a line of credit and when I went to buy my van in the T&C it said the check wasn't good for commercial vehicles. Even the Chevy dealer had a hard time finding a loan for me. I then went online to Lightspeed (Div. of Sun Trust bank) Got approved immediately for a loan (UNSECURED-I hold the title) at a BETTER interest rate and they don't care what you buy. A previous poster said Sun Trust doesn't approve this kind of loan, but my experience was different. You do need an excellent credit score to qualify for the lowest rate (as you would anyplace). But even at a higher rate/lower credit score, you could still borrow for a commercial vehicle. I highly recommend the experience and this company. Being unsecured, you technically don't even need collision insurance, but would probably foolish NOT to have it on your van. Also...just purchase a cargo van. There is NO reason for the lender to know you plan on converting it to a camper van. In PA, my van is legally registered as a class 3 truck. Hope this helps.

 

[breeze]

I purchased my used 2015 Chevy Express Cargo van in May.  Originally, my bank approved a line of credit and when I went to buy my van in the T&C it said the check wasn't good for commercial vehicles. Even the Chevy dealer had a hard time finding a loan for me.   I then went online to Lightspeed (Div. of Sun Trust bank)  Got approved immediately for a loan (UNSECURED-I hold the title) at a BETTER interest rate and they don't care what you buy.  A previous poster said Sun Trust doesn't approve this kind of loan, but my experience was different.  You do need an excellent credit score to qualify for the lowest rate (as you would anyplace). But even at a higher rate/lower credit score, you could still borrow for a commercial vehicle.   I highly recommend the experience and this company.  Being unsecured, you technically don't even need collision insurance, but would probably foolish NOT to have it on your van.  Also...just purchase a cargo van.  There is NO reason for the lender to know you plan on converting it to a camper van.  In PA, my van is legally registered as a class 3 truck.  Hope this helps.

The only reason I could think of for them to know would be insurance to cover all of your added options, if they are significant enough value to worry about. O/w, mum's the word!

 

[Artsyguy]

The only reason I could think of for them to know would be insurance to cover all of your added options, if they are significant enough value to worry about. O/w, mum's the word!

I'm only discussing where to get financing for a cargo van, not insurance.  I have not told my agent that I have converted my van into a camper and I do not intend to.  I see it as a can of worms that I don't want opened.  At most, I will have around 5K into my build beyond the price I paid for the van.  A small risk I'm willing to take.  I'll keep all my build receipts and use them if the time should come.

 

[John61CT]

Then when you see something like this, for sale but still under the financing agreement

It gives you some appreciation of the other side's POV.

 

[Wanderer]

From reading everyone's posts on the subject of credit unions and bank loans on vehicles and aving them repossesd if and when the loans cant be made. The other factor to be minful of is if you do fall behind for what ever reason you do know that it'll cost these organisations alot of time and effort to try and reposses their items back since you'll not really have any fixed home address for them to find you. In other words they might think that you're a flight risk.

I disagree. They'd not know that the address listed wasn't your "Home" address. I can go to the place who helped me get my license and pick up mail (While dropping off donations) that they hold for me. They were the place A/E sent my CC and let me tell you, that was nerve wracking waiting for it to show up. $6K Credit Card floating around loose is not a fun thought.

If I was asked "Is this also your mailing address?" is the key quesiton as I can say "Yes" as it is.

 

[Tam O'Bedlam]

I would just try somewhere else.

I got financing on a used cargo van from my credit union in a matter of hours and the van in question was on the other side of the country (long story) and my credit rating is only fair. They only asked me if it was for business or personal use. Insurance was the same thing, they only wanted to know if it was business or personal use (and I had to fill out a separate form stipulating that I really REALLY am using it for personal use not business). In both cases I can honestly say the cargo van is for personal use. So my advice is try again elsewhere for financing.

 

[SheilaTravelsLover]

shoot honey. you'll get there. wish I could give you a loan. Good info though for other nomads who want to get a little financial help <3 <3 <3 luv

 

[davidson]

I had the same experience with my new 2016 RAM Promaster van when I purchased it.  My Credit Union said they do not cover loans on a commercial vehicle, which is what a cargo van is for their books.  I did finance it through the company that sold it to me (Beaverton Dodge) through Capital One.  I have a credit card with Cap One and they are one of the best finance companies in the USA (IMHO).  
 
If at all possible, buy it with cash.  Otherwise, go direct to the Capital One web site.  Good luck.

 

[Zoomyn]

Read the fine print to avoid trouble down the road...
My buddy followed work out of his Credit Unions home State (PA) and sent a change of address then woke up to find his 4X4 missing from his driveway, a clause in the CU's contract specified the vehicle was not to be re-titled outside of PA during the loan period and they came and took it (and kept it!) from Hagerstown MD, seven miles from the PA Line. Yes, laws have changed but financing with a small region outfit means they've written the contract to best protect themselves...

 

[Technomad]

A year ago, I got an UNSECURED loan of $23,500

What was your FICO at the time of the loan? What was your available credit to income ratio?

Your idea is worth exploring, but the lending industry is highly segmented and it may not be a loan available to much of the population.


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[Technomad]

Read the fine print to avoid trouble down the road...
My buddy followed work out of his Credit Unions home State (PA) and sent a change of address then woke up to find his 4X4 missing from his driveway, a clause in the CU's contract specified the vehicle was not to be re-titled outside of PA during the loan period and they came and took it (and kept it!) from Hagerstown MD, seven miles from the PA Line. Yes, laws have changed but financing with a small region outfit means they've written the contract to best protect themselves...

That really sounds like there is a lot more to that story... or a massive lawsuit waiting to happen.


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