paying off tools

[KEH]

Lots of good economic advice on here, I know it's good cause I agree with most of it!

Question: There has been lots of discussion about the expense of buying tool truck tools, especially going in debt to do it. So how long does it take someone who has bought a lot of tools off the truck to get out of debt and to the point where they can buy new ones for cash if necessary? This is for interest, I've never been in that situation and won't at my age.


KEH

 

[MotoDave]

The snap-on sales flyers seem to advertise 260 month payoff periods for scanners and tool boxes. My guess is for hand tools the dealer will somehow determine how much credit he's willing to extend to the buyer, and at what interest rate.

I can't imagine many people go into debt to buy tools for personal use.

 

[Moose-LandTran]

I've just been buying what i can while living at home rent-free. So no debt. The most i've owed my Snap-on dealer was about £360 i think.

 

[bmrisko]

The snap-on sales flyers seem to advertise 260 month payoff periods for scanners and tool boxes. My guess is for hand tools the dealer will somehow determine how much credit he's willing to extend to the buyer, and at what interest rate.

I can't imagine many people go into debt to buy tools for personal use.

260 months? Almost 22 years to pay off some tools? Please tell me people aren't that stupid...wonder what the interest rate is!

 

[Goinlow]

Pretty sure that's 260 weeks. 260 months would be so unprofitable.

My dealer is a younger guy and was a mechanic himself. He knows I am slowly building up tools through him as well as flea markets and eBay. He says $50 a week and were cool (obviously I can't get too crazy). My bill not is around 550. I have paid him probably 1k so far so he knows every single week I'll be there with my $50.

My theory is to keep a running tab with him (small but still). I'll get something decently big every 3 weeks and then either get nothing the next weeks or very small things. This helps me not get too crazy and also helps me gradually build it up.

My bill is also low enough that if I got fired I could pay it off without killing myself.

 

[SS5150]

I used to shoot for $20/ week when I had only 1 or 2 tool guys. Now we've got all 4 brands, and that's way too much. I've been buying mainly from my Snappy guy but I've gotten a few things from Mac and Matco too. I try to keep my account at $200 or less. Right now I'm at $60 with Snappy and 0 for the other 3.

I'll say I'd be running a Cornwell tab but the guy never goes any farther than leaving me a flyer at the beginning of the month. He's missed on a few items these last few months.

 

[mrholeshot]

It's like crack, they give you a free screwdriver for Xmas and sudddenly you are paying them for life. For real technicians he mush constantly upgrade to tools that speed up the job. The faster and more precise the more money you make. no matter if you buy from a tool man or somewhere else it's a never ending thing. As far as tool boxes go they become status symbols. The smart tech trades up as years go by. The young buch fresh out of tech is in real trouble when he starts off already 20K in the hole to the tool man. I've been in about 10K at one time to one tool man on a private truck account. I've been about 6K on a Snap-On account. The weekly payments come really fast and tough.

 

[amt]

I haven't seen one person comment on their interest rate, and that scares me. That is the most important figure in all of this. Snap-on or others would love to go 260 months, as long as the interest rate is high. It's probably a more profitable business than actually selling the tools.

 

[Moose-LandTran]

I haven't seen one person comment on their interest rate, and that scares me. That is the most important figure in all of this. Snap-on or others would love to go 260 months, as long as the interest rate is high. It's probably a more profitable business than actually selling the tools.

I've never paid interest. Never had credit, only RA.

 

[Panzer]

I haven't seen one person comment on their interest rate, and that scares me. That is the most important figure in all of this. Snap-on or others would love to go 260 months, as long as the interest rate is high. It's probably a more profitable business than actually selling the tools.

SO credit is fair the last two boxes I have financed through them 6.75 % not horrible not great credit card has a better interest rate but not high enough limit for my tastes in SO boxes. But after talking to how many tool truck reps many people do not care what they owe and just move on. Like with anything in this world you can over indulge if you choose.

 

[toolfreak]

THe way I look at it, I will use the revolving credit since it's interest free but I always made sure that I could pay it all off and still have money in the bank if I got laid off.

 

[Moose-LandTran]

THe way I look at it, I will use the revolving credit since it's interest free but I always made sure that I could pay it all off and still have money in the bank if I got laid off.

I think that's the solution.

Use the RA but never let it go above what you have set aside. If the worst comes to the worst, you can drop your saved money and be debt free without issue.

 

[mrholeshot]

I haven't seen one person comment on their interest rate, and that scares me. That is the most important figure in all of this. Snap-on or others would love to go 260 months, as long as the interest rate is high. It's probably a more profitable business than actually selling the tools.

I never paid intrest. Most were truck accounts and the others I paid off in the first month

 

[wreckercologist]

I'm numb to it all.

Today, my Snap-on balance was $150ish. I bought a metric tap & die set, made a $30 payment and now have a balance of $330. It's a interest free RA account.

In the past I've been up to $8900.00 or so with Snappy. Some of that was RA, and some was financed. At that time, I was writing a $200.00 check every week to the dealer.

I'm still paying on my Matco box at home. As of today, I owe them $620.00. What ***** is it's too small so after it's paid off, I'm going to be looking to trade/add on. Matco has a sweet box in the new flyer today. Help me.

There are weeks I run a balance on all four trucks.........yes, that's right, I'm not married.

The best finance deal I've come across is sometimes Snappy runs a 1% deal. Buy $1000 at 1% interest and pay it off in 26 weeks. That's really pretty decent for a tool truck loan.

 

[SS5150]

My purchases were truck accounts, except my Macsimizer I bought in '06. It was financed through HSBC? I think. It was approximately 10% rate on a $2500 balance.



I paid it off in 3 months.

 

[Gary S]

I'm at a point in my life where I don't buy anything on credit. If I don't have the cash in my pocket, I don't buy it. That applies to tools, cars, beer, and everything else.

 

[marcusicp]

I'm at a point in my life where I don't buy anything on credit. If I don't have the cash in my pocket, I don't buy it. That applies to tools, cars, beer, and everything else.

I'm right there with you! It's the way to go. My Snap-On guy gives me better prices because I pay cash anyway.

 

[Erle385]

my dad owes the mac guy about $380 with no tax and hes fine with twenty a week. and i owe him $50. the most ours have been were a combined $750. but arent they worth it!!

 

[mrholeshot]

I'm at a point in my life where I don't buy anything on credit. If I don't have the cash in my pocket, I don't buy it. That applies to tools, cars, beer, and everything else.

The only thing I owe for are hospital bills. I can pay them whatever I want. No morgage, car loans, or other loans. I don't have te income I had when I owned my shop either.

 

[lynam]

NO interest for me with the mac tools dude. I think i owe him about 550$. He really doesn't care when i pay him. I think im supposed to pay him about 95$ a week, but hes really flexible some weeks i give him 100 other 50 and sometimes nothing. As long as he knows you well pay, and will order new tools hes very chill.

 

[toolfreak]

I prefer not to owe anything to the tool trucks but there are a few dealers i have dealt with the won't deal even if you pay cash so I will carry a balance and keep my money in the bank.

 

[Goinlow]

To respond to the question about interest. My $550 is on a truck account so what I buy is what I owe. I really need a new box and if my guy could cut mr a good enough deal I'd do it but I'd need to be getting a real good deal.

 

[KEH]

Interesting comments. I was not aware of the no interest deal, that would make things better.

Thanks,

KEH

 

[Blk63Vette]

Hi
I am not a professional mechanic but, I have some decent tools mostly Snap on and Craftsman. I would look at pawn shop and keep your eyes open. Couple years ago. I got a lower and upper Snap on tool box (professional grade). It was in pretty good shape and the guy had to many toolboxes. He owned it once sold it to a buddy. Buddy borrowed cash he couldnt pay back. Sooooo he gave him the tool box. He asked me if I wanted to buy it for 1500.00 bucks but after a couple days of haggling i got him down to one grand. Best investiment I ever made. It pays to keep your eyes and ears open!

Good luck

 

[loj]

Interesting comments. I was not aware of the no interest deal, that would make things better.

Thanks,

KEH

No such thing as a "no interest" deal.

 

[selohssa]

I used to have a $7500 credit limit with Mac and $5000 with Snap-On. I had each one maxed out at one point or another when I was first starting out. I do not like owing people money so I paid them off as quickly as possible. I was still living with my parents and I paid $1000 a month to the tool guys. I buy everything for cash now but looking back, I am glad that I went into debt for my tools because it made me able to do my jobs faster and better than my co-workers who had the bare minimum and make more money to pay the tools of faster.

 

[mattwgrizwald]

I don't think anyone has commented on interest . It's usually 18% or higher when you fianance your tool through like snap on credit or such . When you have a truck account or Ra account no interest Bought my Macsimizer back in 2000 back then no wife no kids
Now I think I owe my snap on guy like 200 bucks total and he only shows up every four weeks or so and I just flip him a couple twentys

 

[Bran Diezel]

i think i owe like 1300 to the SO guy. I just pay him whatever each week, hes good to me... and should be...ive gave him like $4000 already this year lol

matco guy is the same. i usually just buy my stuff in cash but today i got like $260 in stuff and didnt pay him any lol. hes cool with $10 a week

 

[MattT]

No such thing as a "no interest" deal.

True. With truck tools interest is built into the price. If the dealer won't give a discount for ca$h let them finance it and demand receipts.

 

[MotoDave]

260 months? Almost 22 years to pay off some tools? Please tell me people aren't that stupid...wonder what the interest rate is!

Ha yea 260 weeks is what I meant

For me, Snap-On tools are a very occasional indulgence, and cash only. In reality I already have what I need to get my work done, but its nice to have the good stuff I won't ever buy anything like tools that are a want, not a need, on credit.

 

[Farmrod]

my snap on interest rate is 5% but the balance is somewhere around $13,000 my mac interest rate on the other hand is somewhere around 29% and I owe him around $100

Chris

 

[Goinlow]

Tool trucks are great but I use them mainly for filling in what I can't get on eBay for cheap or for more expensive things I don't want to pay right away. I might have $100 for that extension set but I'd rather gradually give him my money then all at once.

 

[mtkst19]

i try to buy a lot of tools for cash off people going out of business/quitting the trade. It has helped me buy a lot of quality truck tools for maybe 40 cents on the dollar. My best year for buying used was 07. I spent roughly 3500 in used tools alone and around 2200 in new. My used tools new would have added up to about 15k. Mostly snap-on stuff too

when it comes to the tool trucks themselves, never buy on credit from corporate. it is like 10-20%. If the tool truck wants to sale you the item, he will carry you unless it is a huge chunk.

the tool trucks themselves, i tell them outright that my min payment that i like is 20 a week. Most of the time they will get more money, but they can count on 20 a week no matter what. whatever credit they feel like extending to me thats up to them. snap on gives me 1k, mac 500, cornwell around 500. lets face it, it is real easy to blow 300 bucks on anything from the tool truck. so 500 credit dont go far at all.

Snap-on would let me go 1k credit just because he knew and counted on every week knowing i paid him on time and never miss payments. I would pay him usually 40-100 a week just because i hate owing money. If i had a good week of side work, id pay off my account in full. never tried pushing it pass a 1000. never had a need to.

Paying cash works wonders too. When i bought my box used off the snap on truck, it was listed for 2300. I know and we all know he doesnt have that into it. He may have sold a box for 10k, gave the guy 2k on trade for the box, so really got 8k off the guy. of that 8k, he is already up probably 2-3k profit. So the used box is gravy money more or less assuming the buyer of the new box doesnt flake.

I got it for 800 less simply because i was able to pay cash for it right then and there. I refuse to buy a brand new tool box. the box dont make me money, the tools do. the box is more or less a necessary evil to keep hands away from my ****.

 

[00S4Boy]

I've run pretty much a grand debt with snap on this whole year lol, between two different dealers. Highest i went was like 1400 and for the past like month i've been giving him 200 a week and i'm only down to 950 lol. I'm pretty sure i could get like 3k in RA credit, because he knows i make the money and he knows i'm good for it.

I'm talking with him on possibly getting a new box, because of a 2k rebate over 10k purchases. I want to go krl1024 but i'll be dropping myself 11k in debt, sure i could pay it off in like 4 months, but that seriously limits my tool buying. Talked with my SO guy today he said he might have something right up my alley not as bad as a krl1024 but that still qualifies me for the 2k rebate. We'll see what he has to say tomorrow.

 

[Indy_500]

I think it's a good thing i stay off tool trucks at the age of 15

 

[tonydanzah]

I have never worked flat so I have a question. Can you guys that keep saying you need to spend 2-300 a week to buy faster tools. Besides the basics or an air impact, fine tooth ratchet, ratcheting wrenches, maybe an electric impact driver. What other tools do you have to keep buying to get your times faster?

 

[00S4Boy]

I have never worked flat so I have a question. Can you guys that keep saying you need to spend 2-300 a week to buy faster tools. Besides the basics or an air impact, fine tooth ratchet, ratcheting wrenches, maybe an electric impact driver. What other tools do you have to keep buying to get your times faster?

Latest and greatest ****, or just a tool that makes a job easier, like a certain size ratcheting wrench, or a certain size 12 pt socket, or a crows foot, or a new specialty tool, or long wrenches, or stubby wrenches. And you know us if we buy one we gotta buy the whole matching set. And not just the latest and greatest tools, but the oops tools like taps dies drills extractors, diagnostic equiptment, basically any job you run across a tool you need that would make it easier and you for see yourself doing that job again in a reasonable time period.

I myself only have a year in of actually wrenches, i had some time as a shop ***** and a service writer, so my tool collection is still in it's beginning stages.

 

[tonydanzah]

Hmm, interesting. I think I would have a hard time specialty tools. Maybe my thinking is flawed, but it seems like working in a non specific independent shop would **** the money out of you. Since You would tools for all makes. I think like this, maybe see that type of car and specific problem 2 or 3 times. I might pass on the job. Figure a timing kit kit costs 150, the job pays 4 hours and you make 20 an hr. So the first time the job cost you $70. The next time you paid for the tool and made $10.

 

[00S4Boy]

Hmm, interesting. I think I would have a hard time specialty tools. Maybe my thinking is flawed, but it seems like working in a non specific independent shop would **** the money out of you. Since You would tools for all makes. I think like this, maybe see that type of car and specific problem 2 or 3 times. I might pass on the job. Figure a timing kit kit costs 150, the job pays 4 hours and you make 20 an hr. So the first time the job cost you $70. The next time you paid for the tool and made $10.

Part of it for me isn't practical like your thinking, i like challanges and being able to beat those challanges. Like i just started getting into A/C work due to it being summer time, so now i'm looking at things like relay testers, a power probe, quick disconnects. I ran into a situation where i was having a blend door issue and i needed a smoke machine to check for vac leaks.

Like my list of next purchases is basically

OTC hub tamer elite
OTC 10 way slide hammer kit(with 5lb hammer)
OTC 10lb slide hammer
Power Probe III master kit
Master Plus disconnect set
Cartridge oil filter cups
K-Tool International Megahammer
Snap on 66 Piece metric master tap and die set
Snap on 66 piece SAE master tap and die set
Murray Split Die Sets
Drills/Drill bits/Drill Doctor
Extractors, spiral flute, multi spline, left handed drill bits

Somewhat in that order left out some stuff might put certain purchases off, or add in other purchases.

 

[tonydanzah]

That list seems very reasonable as you can use and will probably need those kits on all makes.