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

[lf6998]

HI,
In my research when deciding which vehicle go with, I wondered about insurance, and was told insurance companies won't cover if converted, because the renovations won't qualify it as a "true self contained rv" . Similar feedback for registering vehicle and not to inform lender.

I wouldn't worry about what you do to it, as any vehicle they can repo if payments not made. Most people make changes to vehicles such as new stereos install holders for electronics and cameras though they are minor they are permanent as modifications to van are. So I personally would not worry. Good luck!

 

[SoulRaven]

Vanda,
Local Credit Unions are good. USAA is also good for banking & financing what is considered "commercial" vans, or cargo vans. Keep trying, tell them Personal Use as that is not a lie, but don't volunteer extra information. The other tips were great. 

Good luck, keep us posted.

 

[jonthebru]

Many folks don't quite understand that when you have a car loan, the car is actually rented until you get it paid off. Any chance of a personal loan? You don't have to state what it is for.

 

[Zoomyn]

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


Nope - Pennsylvania coal mining country, the Credit Union everyone employed in the mines of that County used...  

Specific language buried in their simple auto loan contracts had one of the contractual obligations being his loans collateral remained in the State of PA the entire life of the loan.

Changing that officially invoked immediate loan cancellation - I'm guessing there were prior communications my Buddy tried to bull his way through, complaining while making payments... Bzzzt.

He was also billed for the difference from the auction wholesale money recovered and the book value, he swore they gave it away to some Bankers' Nephew.

All that hassle helped fuel a divorce AND a full head of grey hair

 

[ColoRockiesFan]

Vanda,
Local Credit Unions are good. USAA is also good for banking & financing what is considered "commercial" vans, or cargo vans. Keep trying, tell them Personal Use as that is not a lie, but don't volunteer extra information. The other tips were great. 

Good luck, keep us posted.

X2 for USAA. My loan officer and I had a wonderful discussion about my plans to convert my cargo van. No problems there at all. I also told my insurance agent (also USAA). They will cover the first $5000 of items in my van ... after that I need a special rider. They had no concerns at all about any conversion.

 

[John61CT]

Under 10% of the population qualifies for USAA.

 

[accrete]

My wife and i had no issues right from the first convo with the dealership. We began discussion at our local Chevy dealership and insisted on speaking to the commercial fleet manager. I told him i'd found an AWD van (they had none on lot) in another state and wished to purchase it. He did his magic and it was on the lot the following week. He knew we were going to have it converted, in fact he suggested using the (at that time) upfitters credit to help pay for some of the original mods (the Fiberine high-top). He got 0% end-of-year GMAC financing for us. We sent the van off to Van Specialties of Portland Oregon and they got her from stock to bling : ) 

YMMV...but ours was great!
(the van is up for sale at this point as we are mellowing out our adventuring and don't need the off road capabilities this van has at this point.)

 

[Technomad]

Under 10% of the population qualifies for USAA.

That may be the case, but if one of your parents was in the military, you can get a membership, that’s how I got mine.

I also got membership at Navy Federal Credit Union, by having a parent open an account first. Even though they hadn’t been in the Navy (they were in a different branch.)


Sent from my iPhone using Tapatalk

 

[Vanda]

Just wanted to check in and say that I did eventually find a loan through a local credit union and this was after a few rejections. My credit is okay but I do have a few dings that I think some banks were unwilling to overlook. I was actually approved for an RV loan through this credit union which I though was odd but it's longer terms and a decent rate (especially considering my less than stellar credit). So...to anyone else reading that was in the same boat, keep trying. You'll eventually get there!

 

[frater secessus]

My score was something like 825 when I applied and still got rejected by two Banks as it was a cargo van. <shrug>

I think the Banks are worried the van would be abused as a work van, quickly depreciate, and leave them with exposure.

Sent from my R1 HD using Tapatalk

 

[Sunny1]

I just bought a 5 year old Transit Connect this week. I learned that there are only 4 banks who will finance commercial vehicles and the rates are all over 7%, even with great credit.

HOWEVER Capitol One has just gotten into the commercial vehicle market and are very competitive. I told them up front I wanted to convert the van to a micro camper for weekend use. The didn't have a problem with it, and got me a 5% rate.

 

[RVTravel]

Good deal Sunny1. Capitol One came through.

 

[Smitty716]

I wouldn’t offer up any information unless asked . Just tell them it’s for personal use.

 

[frater secessus]

HOWEVER Capitol One has just gotten into the commercial vehicle market and are very competitive.  I told them up front I wanted to convert the van to a micro camper for weekend use.  The didn't have a problem with it, and got me a 5% rate.

Same with me. 

The rejecting banks I mentioned earlier:
* Chase (where I have had an account for 30 years) wouldn't do it because it was a cargo can.
* The highly-respected Sunpower (Sun-something?) sent a letter saying they wouldn't do it because it was the wrong type of collateral (ie, cargo van).

Capital One said "Sure!" and gave me a nice rate.  My experience with them has been quite good.  The site works great for online pay and shows as much info as you want.

 

[Sunny1]

Same with me. 

The rejecting banks I mentioned earlier:
* Chase (where I have had an account for 30 years) wouldn't do it because it was a cargo can.
* The highly-respected Sunpower (Sun-something?) sent a letter saying they wouldn't do it because it was the wrong type of collateral (ie, cargo van).

Capital One said "Sure!" and gave me a nice rate.  My experience with them has been quite good.  The site works great for online pay and shows as much info as you want.

So glad to hear they came through for you, too!

 

[justfra]

Same with me. 

The rejecting banks I mentioned earlier:
* Chase (where I have had an account for 30 years) wouldn't do it because it was a cargo can.
* The highly-respected Sunpower (Sun-something?) sent a letter saying they wouldn't do it because it was the wrong type of collateral (ie, cargo van).

Capital One said "Sure!" and gave me a nice rate.  My experience with them has been quite good.  The site works great for online pay and shows as much info as you want.

Can I kindly ask you how did you initiate the application? Was it through the website/phone/branch?
I'm interested, too.

My main concern in not disclosing is if you want to register it as an RV/motorhome once the conversion is complete, won't the bank know at that point?
I hear RV insurance is cheaper and there might be issues if you are stopped by police and you are carrying alcohol or similar items which might be restricted in a regular vehicle but would not in a motorhome.

 

[bullfrog]

I recently bought a travel trailer and was told banks are not giving loans to fulltimers in a lot of cases as they have no house or property which they can attempt to get if they have no idea where they might be living. Apparently when the housing market crashed a lot of people moved into their RV and took off to start over without letting the bank, who was evicting them from their house, know!