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Financing a used truck and a new plow together

Discussion in 'Business Fundamentals' started by KM81, Jan 8, 2011.

  1. KM81

    KM81 Member
    Messages: 47

    Feel free to move this if it isnt in the right spot.

    Im looking at a buying a used Wrangler to use on my residential's but I want to put a Western Suburbinite into the auto loan as well. Does anyone know if this can be done?
  2. Look at getting a Personal loan or a line of credit. Doubt they would do that on a used auto loan...as the total amount financed would prob be alot more then the Book Value for the Jeep. Also see if you can get dealer financing for the plow. Best bet check with the finance company you intend to use.
  3. KEC Maintaince

    KEC Maintaince Senior Member
    from N.J.
    Messages: 265

    i was tryin to do the same thru my credit union because i get a better rate.
    they will only finance vehicles up to 5 yrs old and only up to a certin amount on the 5th year old.
    example: 2006 rubicon 18500 my credit union will only lend me 17000 .
    now 2009 wrangler sahara 22000 they will lend me the entire amt.
    even tho the kelly book value on the rubicon is 20000 they said the yr of the vehicle makes the diffrence.
    good luck
  4. KM81

    KM81 Member
    Messages: 47

    I am getting a hell of a deal on the Jeep so even with the plow cost added on to it, it still only comes up to 90% of the value. I guess what Im asking is when I go to get the check from my bank, I need them to cut 2 checks. 1 to the car dealer, and the other to the plow dealer. Not sure if they will do that or not. That or I need to have the car dealer buy the plow from the plow dealer and I will just pay the car dealer for both. Now that Im actually writing this down, it doesnt seem like they would do it
  5. Along the lines of what I said before if they wont do it and u cant get a personal loan or line of credit to buy both, you can always apply for the same for just enough for the plow. Good luck!
  6. KEC Maintaince

    KEC Maintaince Senior Member
    from N.J.
    Messages: 265

    i beleive the car dealer will have to purchase the plow from them
  7. dforbes

    dforbes Senior Member
    Messages: 247

    My bank would do it. They would hold a lein against the jeep and a lein against the plow. If you default you would loose both. Give them a call and tell them what you are doing. Shouldn't be a problem.
  8. show-n-go

    show-n-go Senior Member
    Messages: 776

    The dealer can do A buy the plow and give it to you or B on paper charge you more(the amount of the plow) and cut you back a check for the difference between what your paying and what your bank gives them.
  9. Clint S

    Clint S Senior Member
    Messages: 280

    Are you going to install the plow yourself. If not just have the dealer take it to the shop get it installed and then charge you accordingly. I have bought 1 used and 1 new truck like that. The plow should add enough value to the vehicle when getting the loan so it works out.
  10. My bank told me as far as they are concerned a plow doesn't add value to a vehicle because it is a removable accessory and not permanent. They actually said that a vehicle being used to plow actually LOWERS its value.
  11. KEC Maintaince

    KEC Maintaince Senior Member
    from N.J.
    Messages: 265

    yep when i told my credit union i wanted a loan for a truck to use to start a snow plow business the lady taking my info told me dont mention that if some one from the finance company calls. the credit union told me that these loans are for personal use not commercial use.
    if i wanted a commercial loan then she would have to put me thru to another office to take my application.
    but what i do after the fact is my business.....
  12. dforbes

    dforbes Senior Member
    Messages: 247

    I believe they told you that but it makes no sense at all. When you purchase something it has a value. What you are going to do with it does not change the value at the date of purchase. If my banker told me that, I would be looking for a new banker tomorrow. Not before I told him what I thought of his logic.

    Also a plow may not add value to the truck but the truck has value and the plow has value. If you have good credit getting a loan for both should not be a big deal. Yes it may need to be a commercial loan but that is what it is for. Yes interest rates are a little higher for this type of loan. If you need to combine the loans, you do what you need to do.
    Last edited: Jan 8, 2011
  13. EPM

    EPM Member
    Messages: 94

    I ran into the same problem this fall. I ended up buying the plow through the car dealership because the bank wouldnt work with me on cutting two checks. One the upside, the dealership saved me almost $600 on the new plow because plow shop wanted thier buisness. Something you may want to look into.
  14. qualitycut

    qualitycut PlowSite Fanatic
    Messages: 24,231

    I have done it the dealer bought the plow and put it on the price of the truck.