Wednesday, August 23, 2017

Completely Missing the Boat about Fire Truck Purchasing

I have written before about callers who ask for the wrong information when buying a new truck.

And I've mentioned that each fire truck purchase has 3 economic stages.  And that each stage has a different BIG question to answer and with different tools.


So, here's what who are missing the boat about their purchase ask

  • I need a quote to show the council we need a new truck.
  • I need a quote with 3, 5, 7, and 10 years with no money down and some money down

Here's what I hear

  • I still have to convince the council to buy the truck and hopefully a payment might sell it.  This is using a Financing Tool to handle the Justification stage.  Justification means showing that buying makes more economic sense than not buying.  Here's the tool to do that - Download it here.
  • We are in agreement to buy the truck but have no clue how much we can afford.  We really need help setting a budget to know how much we can afford.  The Budgeting stage happens after the Justification stage, meaning there is agreement to buy and it's time to get specific.  Here's the tool to help with budgeting - Download it here.

Summary

If you are still trying to convince someone it's time to buy or determine how much you can afford, you are missing the boat.  Get the right tools for the right stage.

Stay safe!
John R. Hill
President
First Bankers

Wednesday, August 16, 2017

Hidden savings for fire truck financing

Over the past couple of weeks, I've shared what most fire departments miss when they call about fire truck financing.

Let's put some numbers to the savings that you can have when you ask the right questions.

All of the amounts are an example when financing a $400,000 fire truck.

Here are the common question I hear and how much they save

  1.  Lower interest rate:  A 1/4% lower interest rate will save $6,000
  2.  Pay off early:  This doesn't save nearly as much as people hope. You can read more here about this myth.

Here are the hidden savings results and how much they save

  1. Finance for 1 less year:  By reducing your financing term by 1 year, you save $9,000.
  2. Put 10% more down:  By financing less, you save $12,000
  3. Moving payment date during the budget year:  By moving the payment date, you save $6,000.
And there's even more beyond these 3 ideas...

Summary

Scrambling around to find a 1/4% lower rate saves less than half of other hidden saving ideas.  Be smarter and examine all the options so you can keep more money in your pocket.

Stay safe!
John R. Hill
President
First Bankers

Wednesday, August 9, 2017

What you miss about fire truck financing

Last week, I shared that financing a fire truck is unique and has different choices than financing a car or house.

Financing a car or house has just a couple of choices - how much to put down and how long to pay.

Financing a fire truck has 5 more options

And, if you miss anyone of them or chose wrong, you just wasted a lot of money.

Here are the other 5:

  1. Financing Term. Cars or houses have few choices (5 or 6 years or 15 or 30 years) but financing a fire truck has many more choices. There are big savings by choosing 1 year shorter.
  2. Payment Frequency. Cars or houses pay monthly.  That's it.  But fire truck financing has monthly, quarterly, twice a year or once a year. The whole myth about monthly payments always saving money is not always true.
  3. Payment Timing. You don't get to chose this for a car or house but can with a fire truck.  When during your year should you pay.  This is the easiest, biggest bang for your buck choice to make.
  4. Interest Rate Features.  Cars and houses have mostly fixed rates but fire trucks have more options.  Know the best choice for your situation to avoid wasting money.
  5. Fees & Costs.  Most cars and houses have costs you just have to pay. No exception. But a fire truck has more options and it's important to make the right choice.

Summary

Don't use car or house thinking when financing a fire truck.  It's just too easy to miss something.

Oh yeah, there is something exceptionally unique about financing a fire truck that saves a lot of money.  I'll share it next week.

Stay safe!
John R. Hill
President
First Bankers

Wednesday, August 2, 2017

Why fire truck financing is unique

Most callers don't know what to ask

They try to use car or house financing questions to figure out the best way to finance their fire truck.

Here's why their questions miss a LOT of key information

In a nutshell, financing a car or house has much fewer choices than financing a fire truck. 

So, miss something and you just made a huge mistake.

Financing a car or house has 2 options - how much down payment to pay and how many years (3 or 5 or 15 or 30, for example).

Financing a fire truck has 7 options.  And each option can cost or save you money.

Summary

Financing a fire truck is not like financing a car or house.  And, if you use that way to ask for information, you will miss a lot of key information.

Stay safe!
John R. Hill
President
First Bankers