Wednesday, October 18, 2017

New Fire Truck: Vendor provided financing - The Pro's

The large fire apparatus manufacturers such as Pierce, Rosenbauer, E-One, KME, Ferrara, etc. offer financing for their apparatus.

Full disclosure:  Our company serves some fire truck manufacturers and also helps directly with the fire department no matter the manufacturer.  We've seen it all.

What are the benefits to financing your new apparatus with the manufacturer financing company?

There are a few benefits in financing with the manufacturer.

First, it's convenient.  You won't have to chase down different financing companies and spend hours comparing offers.  The manufacturer will usually get all the information for you and will probably even help answer your questions.

Second, there is no learning curve.  The manufacturer and financing company work together often and already have a system to make things easy.

Finally, there is expertise.  The manufacturer usually only works with someone who is an expert in fire truck financing.  The financing company should be familiar with all the rules and procedures.

Summary

There are benefits to financing your new fire engine with the manufacturer.  Next week, we'll look at the cons and the myths the following week.

If you want to learn more about financing fire apparatus, get your free Fire Truck Financing Kit by clicking here.


Stay safe!
 John R. Hill
President
First Bankers

Wednesday, October 11, 2017

New Fire Truck: Vendor provided financing overview


The large fire apparatus manufacturers such as Pierce, Rosenbauer, E-One, KME, Ferrara, etc. offer financing for their apparatus.

Full disclosure:  Our company serves some fire truck manufacturers and also helps directly with the fire department no matter the manufacturer.  We've seen it all.

So, does it makes sense to finance with the manufacturer?

What does it mean when the manufacturer finances the truck?

Is it always the best deal?

What are the downsides to financing with the manufacturer?

What myths are out there about manufacturer financing?

Over the next couple of weeks, I'll discuss the pros and cons of manufacturer options, what to expect, and what most people believe but isn't true.

In the meantime, if you want to learn more about fire truck financing, what options are available, and what you should ask, get the free Fire Truck Financing Kit by clicking here.

Summary

Manufacturer financing is readily available. It's important to know the behind the scenes information to make an informed decision.

Stay safe!
John R. Hill
President
First Bankers

Wednesday, October 4, 2017

Fire Truck Budgeting: Starting with the payment

How much can we afford?

That is a question that is always on the mind when buying a new fire apparatus.

Setting a fire truck budget

If you have saved or will save for the truck, this is a easy calculation.  How much have/will you have?  If you have saved $500,000 or will pledge $500,000 from this year's budget for the truck, your budget is $500,000.  Easy and simple.

But what if you need to finance the purchase, how do we calculate a budget then?

In that case, the budget is the amount you have saved (if any) plus the payments you can afford.  So, if you've saved $100,000 and can afford $50,000 per year payments, your truck budget would be set based on these two numbers.  The longer you finance the purchase, the more truck you can afford.

For example, if you want to finance for 5 years, the amount you could finance would be about $230,000 plus your savings of $100,000 for a truck cost of $330,000.  If you want to finance for 10 years, the truck cost can be about $525,000.

Summary

There is some relatively complex calculations to developing a truck cost based on your saving/financing budget.  You can find a free tool to help you do the math at:  FirstBankers.net/Budget


Stay safe!
John R. Hill
President
First Bankers

Wednesday, September 27, 2017

Fire Truck Budgeting: Starting with the truck

How much can we afford?

That is a question that is always on the mind when buying a new fire apparatus.

Setting a fire truck budget

If you have saved or will save for the truck, this is a easy calculation.  How much have/will you have?  If you have saved $500,000 or will pledge $500,000 from this year's budget for the truck, your budget is $500,000.  Easy and simple.

What if you need to finance the truck?

Then, after selecting and costing the truck, you have to determine how much payment you can afford.  Again, if you have saved up any money for the purchase, this helps you set a higher apparatus budget.

A simple rule of thumb for fire truck payments

Typically, fire trucks are financed up to 15 years.  That would be the lowest payment available.  For 15 years, your payment would be about 1/10th of the amount financed.  So, if you have selected a $500,000 truck and have saved $100,000, you would need to finance $400,000.  This rule would help you estimate a payment as low as $40,000  (1/10th of $400,000).  If you can afford more, just shorten how many years you finance and reap the benefits.

Summary

It's simple but not easy to do the math to calculate a fire truck lease or loan payment.  You can estimate a payment based on different scenarios at:  FirstBankers.net/Payment



Stay safe!
John R. Hill
President
First Bankers