Wednesday, February 20, 2013

Apparatus Financing - Costly mistakes

Here are some recent apparatus financing mistakes I've seen

First, a department had $50,000 in its budget for a down payment but wanted to put it into savings instead. This mistake cost the department over $25,000.

Second, a department was so focused on the payment plan that it would not consider other information.  This mistake cost the department over $19,000.

Finally, a department wanted the lowest payment and missed a small easy change to their financing request.  This mistake cost the department over $23,000.

How can apparatus financing mistakes be avoided?

It's simple.  In each of these cases, the department was so focused on the detail, they missed the big picture. 

They all failed to use Total Borrowing Cost, a new modern way to request and compare apparatus financing offers.  If the first department had realized they spent half of what they saved, all because they wanted a higher bank balance, they might have made a sounder financial decision.

Summary

It's easy to get blinders on and miss key information.  Information that can cost tens of thousands of dollars.  There is better information to understand and compare apparatus financing offers.



Stay safe!
John R. Hill
President
FirstBankers.net

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