I think one of my tool truck drivers has had it with non payers

[CoThG]

That's just poor people mentality. You have to remember with poor people its all a show. Nobody sees where you live or your bank account but they see your truck and your clothes everywhere you go. If you have the biggest baddest SO box in the shop you get all the "its obvious who makes all the money around here" comments and that makes you cool. If you look rich then in your mind your rich.

You described their mentality to a T.

 

[CHI_Tool&Die]

I should take a photo next time of the map my Matco guy has hanging on his truck’s door. It shows all the routes available in the area and then another shows the number of routes available in each state. It’s not pretty. He likes being a driver but he has said it’s not as easy as it seems.

You could be a route manager. The MAC guys do that and they assume none of the risks that the franchisee does but then they also don’t get all the rewards either.

 

[rust in the eye]

I am the BHPH guy.... I would love yo hear why my industry is predatory. Please give real facts not assumptions that we sell cars 100 times and the down payments cover the cost of the cars, because none of that is true. Yes we run state max interest on loans but on 18-36 month loans that is a much smaller finance charge then a new Tahoe at 84 months.

I would recommend you read the definition of predatory lending because that typically refers to industries like debt consolidation and payday loans.

You make (I think) a valid point about your state allowed maximum rates over a short term vs. "normal" rates for very long periods. Either way many get in over their heads. A case could be made that the 7 year note for the new Yukon(an even more rapidly depreciating asset) is more predatory. The seller in that scenario won't be holding the note so with his cut assured bleeds the deal for all its worth then lets a bank worry about repayment.
I've read some of your other posts regarding how you prepare cars, doing a bunch of maintenance to hopefully insure at least enough service life to exceed the loan term. This serves everyone well and is commendable. I've seen plenty of BHPH stores that simply wash and park too and from what I've seen from my periphery of the car business their model prevails.
It pains me to see folks in bad circumstances exploited. Fools on the other hand I have no sympathy for. I'm sure you see your share of both.
You've chosen to be in an industry, car sales, with a well earned bad reputation. I suspect you to be an exception which ought to be comforting but you still wear the scarlet letter, deserved or not.
A tough row to hoe, for sure, hence my earlier suggestion about perhaps aiming for a different clientele.
Sorry if I offended

 

[L.Cheapo]

Tools are not provided simply because they "walk away", if you own them you take better care of them and ensure they are back where they should be after the job is completed.
Every place I've worked has provided equipment(trans jacks regular jacks etc.), scan tools, specialty tools they are usually the worst taken care of tools in the shop, put away broken missing pieces etc., it doesn't take long to understand why shop owners don't provide tools.

Not only that, but a majority of shop owners are cheap, for whatever reason applies to them.

Would you want to use a 1980s Craftsman raised panel ratchet all day? Some no name Temu ratchet with less teeth than the average meth head and skips half of them? I know I wouldn't.

Plus you make more of a statement pushing your box out your bay door when you quit than you do just picking up your coat and leaving.

 

[E46 Tony]

Not only that, but a majority of shop owners are cheap, for whatever reason applies to them.

Would you want to use a 1980s Craftsman raised panel ratchet all day? Some no name Temu ratchet with less teeth than the average meth head and skips half of them? I know I wouldn't.

Plus you make more of a statement pushing your box out your bay door when you quit than you do just picking up your coat and leaving.

I am required to work with provided tools (government agency) and I would much prefer to use my own tools, especially if I made a little extra money out of the deal. They spend a small fortune buying us cheap trash tools through Grainger and MSC. I've taken a few of my own ratchets and smaller things in just to make life a bit easier, it's not technically allowed but nobody really cares since we're not a strict environment like aircraft maintenance.

 

[jeffro30]

I know you know there are MANY auto mechanics with fully tricked out "Brodozers"... $75-100K plus trucks that embody the majority of their net worth. Same with their toolboxes. These people live paycheck to paycheck and usually have very poor credit ratings due to poor life choices and the perceived need to "keep up with the Joneses".

Some people buy 75k trucks that they can actually drive, Other people buy 75k worth of tools to sit in a toolbox. Different strokes..

 

[Steve_P]

I should take a photo next time of the map my Matco guy has hanging on his truck’s door. It shows all the routes available in the area and then another shows the number of routes available in each state. It’s not pretty. He likes being a driver but he has said it’s not as easy as it seems.

You could be a route manager. The MAC guys do that and they assume none of the risks that the franchisee does but then they also don’t get all the rewards either.

Running a tool truck has to be a 50+ hour a week job in order to be successful. Because you have to be in the truck 40+ hours a week visiting shops, plus whatever the time in transit from your base. Then add in processing returns, inventory, ordering replacement stock, looking at the computer to see who hasn't paid and who owes what...

Decades ago, there was a mechanical engineer where I worked that decided to "retire early" in his 50s and get a Snap On route. I guess he bought into the "be your own boss, freedom from 9-5, you can work as much as you want" nonsense that people envision of owning a small business. He lasted about a year and sold the route because it was way more work than he anticipated.

 

[mepstein]

Running a tool truck has to be a 50+ hour a week job in order to be successful. Because you have to be in the truck 40+ hours a week visiting shops, plus whatever the time in transit from your base. Then add in processing returns, inventory, ordering replacement stock, looking at the computer to see who hasn't paid and who owes what...

Decades ago, there was a mechanical engineer where I worked that decided to "retire early" in his 50s and get a Snap On route. I guess he bought into the "be your own boss, freedom from 9-5, you can work as much as you want" nonsense that people envision of owning a small business. He lasted about a year and sold the route because it was way more work than he anticipated.

Driving to your customers to sell and collect $ in a truck you bought for $$$ and had to stock with tools that cost $$$ and many of your customers can't afford to buy from you unless you give them a no interest loan. No thanks.

 

[pl_silverado]

It depends on how the “contract” was signed.
Registering for a Snap-On account, may have the “loan contract language” embedded in the the account sign up, which 99+% of people may not read, sort of like accepting the terms for a software update, Which may include clauses for arbitration, or deletion of all your data.
Paying outright in cash, may avoid this, but then there might be deals you miss, which are then used to get customers to sign an “official contract” with terms the customer might not realize.

Theres a paragraph on every purchase invoice with such language. Always has been.

Years ago I was a dealer, didn't have many repo's but pretty much anything you owned that was snap-on was fair game. There was an instance I had to repo some tools to cover a balance, so I grabbed enough of the newest stuff I knew I could resell or warranty to clear the customers balance, left him an invoice stating these items were taken showing a now zero account balance and moved on. Most took it well, and kept on buying on a cash basis/tight leash. I think sometimes they just get in over their heads and are embarrassed to admit it.

 

[Houe]

A buddy of mine told me a story of a newish tech ~2 years in the industry. He had a lot of high end tools (snap on) in a very nice box. This tech decided he wanted to pursue a different career. When he left he took a small tool bag to work and grabbed a few of his tools - some wrenches and sockets, but left the vast majority of his tools and his box. A few days later the tool truck guy came in and rolled out the fancy box with all the tools inside. He must have been in for over $15k to the truck guy my buddy thought.

 

[CoThG]

A buddy of mine told me a story of a newish tech ~2 years in the industry. He had a lot of high end tools (snap on) in a very nice box. This tech decided he wanted to pursue a different career. When he left he took a small tool bag to work and grabbed a few of his tools - some wrenches and sockets, but left the vast majority of his tools and his box. A few days later the tool truck guy came in and rolled out the fancy box with all the tools inside. He must have been in for over $15k to the truck guy my buddy thought.

At least he didn't try and stiff the dealer.

 

[drokihazan]

That Matco name on the handle will let you warranty them on the truck so it is worth the extra cost.

if you're breaking knipex enough to pay a bunch of extra cost for truck warranty, you're using the wrong tool for the wrong job. knipex pliers are not a thing people should be casually warrantying on a regular basis if used for any of their intended purposes.

 

[Callelle]

if you're breaking knipex enough to pay a bunch of extra cost for truck warranty, you're using the wrong tool for the wrong job. knipex pliers are not a thing people should be casually warrantying on a regular basis if used for any of their intended purposes.

Maybe not, but even warrantying them once can make it worth it. Compared to paying to mail it back to have them MAYBE warranty it, which they probably won't.

 

[Chipm]

if you're breaking knipex enough to pay a bunch of extra cost for truck warranty, you're using the wrong tool for the wrong job.

This is my attitude for almost any tool. I have gotten to the point where I skip over all of the ridiculous warranty threads. I can count the tools I have broken in thirty years on one hand. If you are breaking tools all the time, you should probably reexamine your work practices.

 

[nicks78camaro]

My Snappy and Corny drivers say their deadbeat percentage is around 3-5%, and it's a cost of doing business, but that would really burn me. A big reason among a few I wouldn't ever consider buying a tool truck franchise.

 

[CoThG]

My Snappy and Corny drivers say their deadbeat percentage is around 3-5%, and it's a cost of doing business, but that would really burn me. A big reason among a few I wouldn't ever consider buying a tool truck franchise.

There is a guy in my area on Facebook marketplace that sells SO toolboxes, most of which have outstanding liens against them from Snap-On credit. He typically has around a dozen like new Epiqs, usually priced around $5000. My Snap-On dealer says that guy is well known for buying boxes from distressed mechanics who can't make their payments to SO credit and are or will soon be in default, so they sell to him for pennies on the dollar, take their cash and disappear rather than have their box repoed.

 

[1Bad55Chevy]

There is a guy in my area on Facebook marketplace that sells SO toolboxes, most of which have outstanding liens against them from Snap-On credit. He typically has around a dozen like new Epiqs, usually priced around $5000. My Snap-On dealer says that guy is well known for buying boxes from distressed mechanics who can't make their payments to SO credit and are or will soon be in default, so they sell to him

I own a BHPH car dealership and I have had customers try that ****. They know its getting to the point of repossession so they will take their $10k vehicle and post it no title on FBM for $2k so they have the funds to put down on another vehicle at a different lot. People think car dealers are bad but have never seen how awesome the general public is...

 

[CoThG]

I own a BHPH car dealership and I have had customers try that ****. They know its getting to the point of repossession so they will take their $10k vehicle and post it no title on FBM for $2k so they have the funds to put down on another vehicle at a different lot. People think car dealers are bad but have never seen how awesome the general public is...

But when you mix together the typical BHPH car dealership (not saying you are or are not) and the typical BHPH clientele... Makes for great reality TV shows...

 

[1Bad55Chevy]

But when you mix together the typical BHPH car dealership (not saying you are or are not) and the typical BHPH clientele... Makes for great reality TV shows...

Why?

You do realize regular people have credit issues and it's not just drug addicts, tweakers, and single moms. Majority of my customers are men that are recently divorced with decent jobs but their credit is shot because of the divorce.

You also realize the biggest BHPH dealerships in the country are Carvana, Carmax, and Drive Time. So yes the typical BHPH would be a customer of one of those places.

 

[CoThG]

Why?

You do realize regular people have credit issues and it's not just drug addicts, tweakers, and single moms. Majority of my customers are men that are recently divorced with decent jobs but their credit is shot because of the divorce.

You also realize the biggest BHPH dealerships in the country are Carvana, Carmax, and Drive Time. So yes the typical BHPH would be a customer of one of those places.

Understand what you're saying, but stereotypes exist for a reason.