snapon/matco financing

[smothers33]

so how exactly does this work?
I started at my current forklift shop about a month ago. we have had a matco guy for the whole time ive been there and the snapon guy just started showing up last week. I was under the impression that if you dont pay cash and make payments that you would be charged interest.
the first purchase i made from the matco guy was the 10 piece metric impact swivel sockets(3/8 drive) and online they are $408. i was charged 450 and i assumed the extra 40 bucks was the interest. then when the snappy guy showed up i bought the metric FDP combo wrenches and a set of 1/4 drive semideep metric sockets/with free flex head 1/4 ratchet. i dont remember exactly what it came out to be but he charged me exactly how much they were online( i think it was like 550 or so) anywasy there was no additional charge and when i brought it up to my coworkers that the snappy guy didnt charge me interest and the matco guy did they told me that neither one would charge interest becasue i was not financing through them i was basically borrowing the tools till i paid it off. they said if i kept the balance under about 1000 i wouldnt get charged interest.
so i brought up the extra $40 to the matco guy and he didnt have a answer for me. his pricing in his computer was different than the website. i also bought a 4 piece burr set that was $15 cheaper from him than the website, but the seal puller i bought was a few bucks more than the website.
anyways im not liking the price difference from the matco guy and im really not loving their tools so im probably gonna keep buying from snappy but im just not understanding the whole financing thing. everyone makes it seem like going on the truck and not having the cash upfront is such a horrible thing but if you can get those kind of quality tools and get essentially interest free financing(if you dont go overboard and have a big balance) why not?

 

[Snapped-off]

Interest, among other things like service and warranty are rolled into the price already, but you technically won't be paying interest on your account.

 

[Fordman7795]

Interest free through the driver up to a certain dollar amount. Keep paying him on time and everything is good. Toolboxes are done through snapon credit

 

[smothers33]

Interest free through the driver up to a certain dollar amount. Keep paying him on time and everything is good. Toolboxes are done through snapon credit

that make sense. i have been keeping my balance fairly low i dont wanna go above 500 or so and i try to pay over the minimum to keep him happy and get my balance low in case im ever in need of something. the nice thing about our matco guy is if you dont have the cash one week or dont are short or whatever hes cool and lets it slide as long as you get it to him the next week or whatever hell work with you. not sure how the snapon guy is yet ive only dealt with him once so far but he seems cool.

 

[dsimatt]

I keep my accounts paid off and try to pay down balances as fast as possible which really helps them, missing a week isn't bad since they probably have guys missing a lot more than that.

 

[dirtydogintex]

Interest, among other things like service and warranty are rolled into the price already,...

Folks seem to compltely ignore that....

....but you technically won't be paying interest on your account.

.... and focus on this instead.

Go figure....

 

[xj31]

You only pay interest on stuff that is financed. Like you sign a contract. A truck account shouldn't have interest, I have never seen that. I have owed snapon over $1000 and never got charged anything. That Matco guy sounds like a douche.

Oh and usually if you buy a lot and make good payments, you will probably get discounts and better service. I'm just sayin'

 

[cundifc]

My snapon guy financed a new KRL for me on the truck account and that was over 4 grand and I was not charged interest.

 

[Skin]

so how exactly does this work?
I started at my current forklift shop about a month ago. we have had a matco guy for the whole time ive been there and the snapon guy just started showing up last week. I was under the impression that if you dont pay cash and make payments that you would be charged interest.
the first purchase i made from the matco guy was the 10 piece metric impact swivel sockets(3/8 drive) and online they are $408. i was charged 450 and i assumed the extra 40 bucks was the interest. then when the snappy guy showed up i bought the metric FDP combo wrenches and a set of 1/4 drive semideep metric sockets/with free flex head 1/4 ratchet. i dont remember exactly what it came out to be but he charged me exactly how much they were online( i think it was like 550 or so) anywasy there was no additional charge and when i brought it up to my coworkers that the snappy guy didnt charge me interest and the matco guy did they told me that neither one would charge interest becasue i was not financing through them i was basically borrowing the tools till i paid it off. they said if i kept the balance under about 1000 i wouldnt get charged interest.
so i brought up the extra $40 to the matco guy and he didnt have a answer for me. his pricing in his computer was different than the website. i also bought a 4 piece burr set that was $15 cheaper from him than the website, but the seal puller i bought was a few bucks more than the website.
anyways im not liking the price difference from the matco guy and im really not loving their tools so im probably gonna keep buying from snappy but im just not understanding the whole financing thing. everyone makes it seem like going on the truck and not having the cash upfront is such a horrible thing but if you can get those kind of quality tools and get essentially interest free financing(if you dont go overboard and have a big balance) why not?

Are you sure you bought shallows and not the mid-length? The latter are about $450. That said keep in mind the trucks are essentially independently operated licenced stores so they can charge however much or little they want. They are not bound to follow the MSRP. Truck tools are already so stupidly expensive it seems idiotic to me to charge more on top of list. Matco has fairly decent monthly sales so grab a flyer. That impact set routinely goes on sale for $80-$100 less if I remember right.

 

[Hiball]

I've never bought anything on truck credit, but I'm assuming you still have to pay tax.. Correct?

 

[Gotmayhem]

It seems like you learned the hard way that it pays off to double check the prices given by the truck dealers before making a big purchase. Sometimes it's true that they really aren't aware of a sale being listed on the website, but in my experience if you make them aware of the lower price they'll honor it. At least that has always been true with my local franchisees. If you can I'd always recommend looking up the item on a phone or computer before handing over any money. It might seem like a waste of time to some people, but that $50 you could have potentially saved is a weeks payment that could have been avoided.

As others have already said, I've never seen interest being charged other than on box financing.

 

[Gotmayhem]

I've never bought anything on truck credit, but I'm assuming you still have to pay tax.. Correct?

Correct. Though sometimes if you're lucky the individual dealer may be convinced to leave it off the bill.

 

[Skin]

I've never bought anything on truck credit, but I'm assuming you still have to pay tax.. Correct?

Yes. Some will be much more inclined to eat the tax if you pay in full with cash though.

 

[Hiball]

Yes. Some will eat the tax if you pay in full with cash though.

Yep.. I never pay tax, i always pay with green backs. I wondering if the Price difference for the Op is the tax.

 

[firebox40dash5]

Yep.. I never pay tax, i always pay with green backs. I wondering if the Price difference for the Op is the tax.

You're lucky. I've never paid with anything but cash, and I've always had to pay sales tax. They gotta account for where their purchases went, no matter how you pay. I guess your driver might be willing to just eat the tax for the convenience of cash.

I'd definitely double check that price, like Skin said they're bad enough at MSRP without it being padded. I'd be pissed if someone was charging me over MSRP, they've got enough markup in there already.

 

[Automatic Slim]

I used to run a wholesale business and my multiplier was 40. That means that if the company charged retail of $1000 usd, my price was $400 for that item. I don't know how much flex this truck guys have, but charging full retail sounds absurd to me.

When I used the snap on truck 20+ years ago, my company bought the supplies (& thus owned the tools and other stuff too) - anything no on company list was my option - he never cut me a deal either and hence I didn't buy much either.

Does anyone know what dealer cost is?? I would like to know, my guide is about 30% of retail price on some of the truck tools - used tools of course, but still serve me well.


Say a wrench at snap-on store retails for $100, how much would the salesmen have to pay for that wrench?


The company I worked for used a multiplier based on sales, tenure, and some items had higher/lower multiplier.

Chances of getting $550 back out of that wrench set are nil - I like to buy tools that I can get 100% of my money back if need be; although not always possible.

Nice wrench set, btw.

 

[firebox40dash5]

I can't tell you a hard and fast number, and I'm relying on my truck guys being honest, which I have no reason to doubt. From what I've seen, they usually have about 100% markup in smaller stuff, and a much lower amount in big stuff. The stuff they're buying from a 3rd party like... is it Mountain Tools?... that's more like 20%.

I understand the tools ain't free, the truck isn't either, and it doesn't run itself, but I agree many prices are insane. I'll buy smaller stuff, a screwdriver here, and extension there at MSRP and not complain. When I go to buy something expensive, I expect a little wiggle room there. If you want to stick to MSRP on that stuff, I'll do without and try to find an alternative.

 

[daveblank]

I used to run a wholesale business and my multiplier was 40. That means that if the company charged retail of $1000 usd, my price was $400 for that item. I don't know how much flex this truck guys have, but charging full retail sounds absurd to me.

When I used the snap on truck 20+ years ago, my company bought the supplies (& thus owned the tools and other stuff too) - anything no on company list was my option - he never cut me a deal either and hence I didn't buy much either.

Does anyone know what dealer cost is?? I would like to know, my guide is about 30% of retail price on some of the truck tools - used tools of course, but still serve me well.


Say a wrench at snap-on store retails for $100, how much would the salesmen have to pay for that wrench?


The company I worked for used a multiplier based on sales, tenure, and some items had higher/lower multiplier.

Chances of getting $550 back out of that wrench set are nil - I like to buy tools that I can get 100% of my money back if need be; although not always possible.

Nice wrench set, btw.

A tool distributor has a profit margin of 30-35% on tools. So, on a $100 wrench he'll pay $65-70.

 

[Automatic Slim]

Thanks for the reply Dave. That's good to know.

 

[bobcatdan]

With the truck account, be a good payer and you will never have problems getting stuff. Also if you have a good pay history, **** happens and you can't pay one week, they are normally very undersrandable. As to using SO or mactco credit, only use it there are great rebates or other incentives. Then quickly swithc the loan to a bank. The tool companies can offer pretty good rated from time to time, but normally float in the high teens. Also, at least with SO, they do not list a credit limit on your credit report so this can really skew your debit to avaliable ratio. When I took out a bank loan to cover my SO credit account, banker told me she sees this alot.

 

[Spudland_Dave]

I also get the distinct impression they are required to carry truck credit... When I rekindled my love affair with tool trucks a couple months ago, the deal was I paid cash...got minimum 10% off across the board....Paid cash on the spot. Went fine like that for a couple weeks and then he started changing his tune...not on the discounts, but on the form of payment...went from comments of "You know you dont have to pay me all the time" to him pratically begging me to just put it "on the truck"..I told him I prefered discounts and he said it wouldnt change anything...so now I buy something this week, pay in full next week...LOL

 

[Skin]

I also get the distinct impression they are required to carry truck credit... When I rekindled my love affair with tool trucks a couple months ago, the deal was I paid cash...got minimum 10% off across the board....Paid cash on the spot. Went fine like that for a couple weeks and then he started changing his tune...not on the discounts, but on the form of payment...went from comments of "You know you dont have to pay me all the time" to him pratically begging me to just put it "on the truck"..I told him I prefered discounts and he said it wouldnt change anything...so now I buy something this week, pay in full next week...LOL

sounds more like he's trying to keep you on the hook so you have a reason to visit whether you planned on buying something or not.

 

[Heavy Metal Doctor]

.went from comments of "You know you dont have to pay me all the time" to him pratically begging me to just put it "on the truck"..

That dealer makes no sense at all considering he pays his price to SO to buy the tool, marks it up whatever amount and then sells it to you. If he collects the sale price immediately, then he has that cash to put back into the business. If you carry that balance on the truck, it's HIS money out walking around on the street in the form of tools he paid for but has not gotten HIS money back for selling.....My understanding is that this is how dealers end up behind the curve on their corporate accounts with SO (allowing too much / too high truck accounts) and end up not having the tool ordering power to get new stock / special orders in for their customers.

 

[Spudland_Dave]

sounds more like he's trying to keep you on the hook so you have a reason to visit whether you planned on buying something or not.

I would tend to believe that if we actually visited more then once a week...when he's done across the street he'll usually text me to see if I need/want anything, if not, he continues his run as usual...he never comes to see me solely for a payment.
I really dont care either way...nice to get on the truck and see what he's got even if I'm not shopping. I'm probably not his target audience...in terms of buying **** on a whim...

That dealer makes no sense at all considering he pays his price to SO to buy the tool, marks it up whatever amount and then sells it to you. If he collects the sale price immediately, then he has that cash to put back into the business. If you carry that balance on the truck, it's HIS money out walking around on the street in the form of tools he paid for but has not gotten HIS money back for selling.....My understanding is that this is how dealers end up behind the curve on their corporate accounts with SO (allowing too much / too high truck accounts) and end up not having the tool ordering power to get new stock / special orders in for their customers.

I know...from a business perspective it makes no sense...which leads me to the belief its a requirement to have Truck accounts...not bragging or anything, but a couple good truck accounts like mine are "a sure shot"...sure he likes/rather add "good" accounts then deadbeat accounts. ASSUMING he HAS to offer em. Thats another thing that leads me to believe they HAVE to..have you ever been on a truck with no truck account available at all?

 

[dsimatt]

That dealer makes no sense at all considering he pays his price to SO to buy the tool, marks it up whatever amount and then sells it to you. If he collects the sale price immediately, then he has that cash to put back into the business. If you carry that balance on the truck, it's HIS money out walking around on the street in the form of tools he paid for but has not gotten HIS money back for selling.....My understanding is that this is how dealers end up behind the curve on their corporate accounts with SO (allowing too much / too high truck accounts) and end up not having the tool ordering power to get new stock / special orders in for their customers.

Exactly, I actually talked with my snap on guy about this because I work with guys that are always buying stuff then doing the $20-50 a week deal and I don't buy much but pay him off fast. He can sell all the tools he wants but until someone pays he didn't make a penny, and there's a lot of guys making the minimum payments they can

 

[Murphy4570]

I used to carry about a thousand dollar account with both the Snappy guy and Matco, paid 'em both $100 a week. They were both happy and never had an issue with either. The one time I made mention of my high balance to the Snappy guy (it was around $1,400-1,500 at the time), he said I had a little more room on my truck credit line, but not too much. I took that as meaning about $2,000 or so.

If you pay more than the minimum $20-50 a week, and always pay every week, they seem to not mind if you have a large balance with them.

 

[dsimatt]

If you pay more than the minimum $20-50 a week, and always pay every week, they seem to not mind if you have a large balance with them.

Yeah that's what I've noticed, prove you're reliable and they'll cut you some slack, just some guys to it to far. I also don't like being indebted because yeah the payments aren't much but they're still there every month.

 

[smothers33]

Are you sure you bought shallows and not the mid-length? The latter are about $450. That said keep in mind the trucks are essentially independently operated licenced stores so they can charge however much or little they want. They are not bound to follow the MSRP. Truck tools are already so stupidly expensive it seems idiotic to me to charge more on top of list. Matco has fairly decent monthly sales so grab a flyer. That impact set routinely goes on sale for $80-$100 less if I remember right.

it was defintely the shallow sockets. but i agree that they are already insanley expensive thats why i was kinda pissed off when i found out he overcharged me. its not the money that matters 40 is not gonna make or break me but its the fact that im already paying a premium price and for whatever reason i got charged over that premium price. but the wierd thing was when i confronted him and asked why it was cheaper online he said it was because you have to pay in full upfront online. i took that as i am getting charged for carrying a balance which is not the case with snapon. i also had him bring me some carbide bits and a seal puller that i asked about the week before so i decided to just get them while i was on there. the bit set was about 20 cheaper than online but the seal puller was a few bucks more. i just dont like how the price varies from online to the truck. this was not the case with the snapon guy yet and ill be sure to keep checking but this whole thing just left a bad taste in my mouth with matco. i already wasnt thrilled with most the matco stuff for the price and this just does not make me wanna spend more cash with them. providing the snapon guy doesnt try some **** i think ill stick with them for the majority of stuff.

 

[firebox40dash5]

it was defintely the shallow sockets. but i agree that they are already insanley expensive thats why i was kinda pissed off when i found out he overcharged me. its not the money that matters 40 is not gonna make or break me but its the fact that im already paying a premium price and for whatever reason i got charged over that premium price. but the wierd thing was when i confronted him and asked why it was cheaper online he said it was because you have to pay in full upfront online. i took that as i am getting charged for carrying a balance which is not the case with snapon. i also had him bring me some carbide bits and a seal puller that i asked about the week before so i decided to just get them while i was on there. the bit set was about 20 cheaper than online but the seal puller was a few bucks more. i just dont like how the price varies from online to the truck. this was not the case with the snapon guy yet and ill be sure to keep checking but this whole thing just left a bad taste in my mouth with matco. i already wasnt thrilled with most the matco stuff for the price and this just does not make me wanna spend more cash with them. providing the snapon guy doesnt try some **** i think ill stick with them for the majority of stuff.

I'd be taking my business elsewhere. As we both said, the stuff's expensive enough, his cut for financing it is in there already.

My Matco guy starts from online price. When I ask him how much something is, he pulls it up on the computer, and either quotes list from the website, or better. The day he intentionally charged me over list would be the last day I bought something from him.

 

[JMLoughrey]

It really does depend on your driver. If you pay him, on time, more then really owed, it can come in handy. I always pay my driver every week, atleast double what he asks.
Because of this, i know he helps me, on any kind of bigger purchase (>$100) he will look up on the computer what his latest sale price was and give it to me for that, and give me a few bucks more off.

It pays to be a good customer.

 

[tshiel22]

I think you definitely gotta get to know the snap-on guy and build up some credit (pay in full a few times) with him before you go and finance a $10,000 toolbox. These guys get ripped by people who dont pay what they got credited everyday so you definitely gotta build some kind of trust. I know with my snap-on guy he would be really hesitant at first when i owed 300 and wanted to buy a new tool but when i started paying back within a couple weeks I could walk out of there with a lot more while paying a lot less every week

 

[tshiel22]

hes definitely going to give you more "sale" prices is you pay him (respect him and what he does for a living) more consistently and follow through with your obligation (i.e. the cost of your tools)