For those financing...

[DCM]

That's not bad at all; Commercial rates are always higher. Are you strictly doing it in the business name or business with personal guarantor or co-sign? I would check around; I purchased a 2022 F-150 and financed it through Ford Credit solely in the business name for 1.9% in January 2022...that's probably irrelevant due to all of the changes going on. I don't know what equipment you are looking for but it would be a cold day in the underworld before I paid 10% for any type of equipment loan.



It wont qualify for the full section 179 deduction because of luxury cap and bed length but I would question why they couldn't add coverage under a business/commercial policy. I am registering mine under my commercial policy just different coverage as I am the only driver.

The B of A rate was with a personal guarantee. I've done it with and without over the years depending on what the loan provider required. It really doesn't bother me either way. I'm ultimately going to be the one responsible in either situation.

The explanation my insurance agent gave me was the F-150 is not a technically a commercial vehicle (oversized vehicle). In order for it to be considered a commercial vehicle for insurance purposes, it has to be titled in the business name. I know these rules vary state to state and am not an expert in this, so I'm going to trust my agent. Don't see this as a big enough obstactle to warrant shopping my business auto insurance for a better option, but want to make sure I'm not getting screwed on the financing.

 

[Grayson]

The B of A rate was with a personal guarantee. I've done it with and without over the years depending on what the loan provider required. It really doesn't bother me either way. I'm ultimately going to be the one responsible in either situation.

The explanation my insurance agent gave me was the F-150 is not a technically a commercial vehicle (oversized vehicle). In order for it to be considered a commercial vehicle for insurance purposes, it has to be titled in the business name. I know these rules vary state to state and am not an expert in this, so I'm going to trust my agent. Don't see this as a big enough obstactle to warrant shopping my business auto insurance for a better option, but want to make sure I'm not getting screwed on the financing.

I don't know who you use for insurance or what field you are in; however regardless of state your insurance agent is not thinking about or disclosing policy liability. If you use the F-150 for business purposes, travel, everyday business activities then it is a commercial vehicle. The DOT states GVWR for regulations for interstate and intrastate commerce along with minimum insurance coverage for business that requires a CDL.

Most and I will say 90%+ personal auto policies will not cover you for any accidents or lawsuits related to business use of the vehicle so commercial is a vague term when it changes from contractual to a question of injury tort claims in court. Hypothetically if you were in an accident where someone was injured the veil of protection that an LLC, LLP or INC offers would not protect you and any item or asset of value would be fair game for both you and the company you own.

Disclaimer: This is not to be considered legal advice because I don't want it to be and you live in Texas.

 

[tooloud10]

in this markets uncertainty all the more reason to keep your money in the bank instead of paying cash. the more liquid you are the better. I am sure most of us that can get a raptor or any other car/truck at this price would be ok. might hurt a bit but we'll find a way. guess what sell the truck if you have to. what a novel idea. I myself finance always. I like the cash in the bank for a rainy day. especially at these rates. I got 1.9% in January. No brainer. close enough to 0% to me. I put enough down so not to worry about needing GAP insurance and so that my payment will be easily doable if shit hits the fan. but not too much to keep me from jumping on an opportunity.

Also the more you finance the more liquid you are to jump on huge downswings in the market. Buy low sell high.

a lot of financial advisors would agree. if you can borrow at a low enough rate. Keep your equity between 50-70%. just like a house. to avoid PMI in the house case. refi refi refi. when you can get a lower rate. invest the cash you take out. use the rest to invest at a rate better than what your paying out. that way if in a bind you are able to sell quickly. unfortunately most likely at a loss but youre liquid. the older you get and closer to retirement. risk levels usually changes with age so levels are different if your at that age or nearing that.

Liquidity is not a good thing in an economy with runaway inflation like we seem to be facing. The money I have in the bank is worth 8% less than it was a year ago, while the cars and real estate I own are worth 35% more than a year ago.

 

[DeckTenRaptor]

Yep, sounds about right, it was about $20 IIRC

how long did the process take with these guys? Their website doesn't have much functionality and I tried calling them multiple times but no one is picking up the phone. I also submitted the application online.
Thanks for the reply in advance

 

[Grayson]

Liquidity is not a good thing in an economy with runaway inflation like we seem to be facing. The money I have in the bank is worth 8% less than it was a year ago, while the cars and real estate I own are worth 35% more than a year ago.

The value of those cars and real estate is directly correlated to demand. Unless you cash out refi or sell (which depending on how long you have owned the RE will incur capital gains and recapture of depreciation) then the asset worth is just a number. It's better to take the inflated value equity out now with higher inflation and buy more real estate rather than sit in an account somewhere.

 

[kpecks]

buy more real estate

This…^^^ among other “assets”

 

[Grayson]

This…^^^ among other “assets”

If it is a private deal and if using cash pulled from a cash out or other source. The market will correct and nobody wants an asset to have negative equity for 4-5 years

 

[doverrover]

how long did the process take with these guys? Their website doesn't have much functionality and I tried calling them multiple times but no one is picking up the phone. I also submitted the application online.
Thanks for the reply in advance

I'm in the process now. You need to become a member and the only way to become a member is to join the NC Consumer Council (one time fee) AND the credit union HAS to mail you forms to fill out...which they will not do electronically....I'm on week one already waiting.....so this may take a while.

 

[DeckTenRaptor]

I'm in the process now. You need to become a member and the only way to become a member is to join the NC Consumer Council (one time fee) AND the credit union HAS to mail you forms to fill out...which they will not do electronically....I'm on week one already waiting.....so this may take a while.

Thanks for the reply. I did join NC consumer council after seeing your earlier msg ... but yes this might take a while. My truck is couple of hours away at the railyard from the dealership ... so it might get delivered anytime now. Genisys CU that I bank is offering 1.89% for 60 months ... I might just go with them.

 

[cdiddy4224]

how long did the process take with these guys? Their website doesn't have much functionality and I tried calling them multiple times but no one is picking up the phone. I also submitted the application online.
Thanks for the reply in advance

Process was pretty quick. I believe I did have to mail them a check. Finding my checkbook was the longest part since I havent wrote a check in ages. Email was the best communication I had with them.