tool box finance charges

[bob15]

What is the finance charge (percentage rate) for tool boxes from Snappy, Mac, Cornwell, etc? Its been 10+ years since I saw a Snap On truck.

Reason I'm asking is last night I saw an ad on TV for Western Sky money borrowing/loaning. I couldn't read the fine print really well and this morning, with nothing better to do, looked it up. The below link brings you to their rate page. Do the math....it is scary than just looking at the rates. Tool truck finance charges no longer seem very bad.

http://www.westernsky.com/General/Rates.aspx

bob

 

[cascivic]

from what ive read i think its in like the high 20%s for the off the truck credit...those indians are trying to get reperations with those percentage rates!

 

[chris142]

28% on The matco truck

 

[jeep450]

I know with Cornwell, I depends on your credit. It can be as low as 9.9%.

Arkansas has a state law, no more than 8.5%.

 

[Creditor]

18% in Texas from Snap-on

 

[signcrafter]

That is just crazy, borrow 850 dollars and they hit you with a 350 dollar fee right off the bat and then charge another 500 in interest over one year.

 

[blasto9000]

What the trucks are giving you is a revolving line of credit, which is similar to a credit card. If your credit is good you should be able to open a revolving account at 0% APR for 20-24 months. Even a lot of non-card revolving credit issuers do 0% APR. I financed my backyard patio through GE Finance, 0% for 24 months on an $8,500 project.

If your credit is rotten or if you have no credit, well, I guess 28% and higher is what you can expect. But if it's clean there is NO reason to pay exorbitant interest.

 

[LSU]

Anytime anyone is "lending" money to someone who is "not credit worthy" the rate is going to be really, really high. The lender is taking a risk and the buyer is going to pay through the nose to borrow the money.

The creditor usually wins.

 

[Stuey]

That is just crazy, borrow 850 dollars and they hit you with a 350 dollar fee right off the bat and then charge another 500 in interest over one year.

Some people have such lousy finances that nobody else will lend to them.

I saw the commercials as well, and saw the rates discussed online a couple of times. They're outlandish, but people still choose to borrow from them.

 

[signcrafter]

Some people have such lousy finances that nobody else will lend to them.

I saw the commercials as well, and saw the rates discussed online a couple of times. They're outlandish, but people still choose to borrow from them.

I understand the whole nobody else will lend, the risk, etc. But I see two things here. 1-this creditor is taking advantage of people who are in a poor situation. 2-People that are in a poor situation making stupid decisions to borrow money. Not sure what they think, "I need a couple hundred dollars to pay rent so I'll call these guys to get a loan" but how do they think they are going to pay next month with an extra 100 dollar payment now.

Personally I could never run a company like this that takes advantage of people making stupid decisions. I'm not blaming the company, just saying I don't believe it's right to take advantage of people when they are down.

 

[bob15]

from what ive read i think its in like the high 20%s for the off the truck credit...those indians are trying to get reperations with those percentage rates!

I think the Indians are trying to buy Manhattan back, one loan at a time.


When I was buying off the truck, I thought the interest on a Snap On box was around 20% according to the last sales flier I had from them (many moons ago). And all these years later I though 20% was high.....but 53k worth of interest on a 10k loan, heck the Moffa is probably cheaper.


On the truck, I didn't have any interest if I paid every week, but then again, I really didn't have a high balance and most times it was none.

bob

 

[daveblank]

Matco's highest rate is 22.5%. If yoyr credit is good, their standard lower rate is 9.99%.

 

[bhalv]

342.86% interest!!!!!! Holy bad decision batman!

 

[RKA]

They should ban these kinds of rates. The interest is so high on these loans that it would take many multiples of the original principle and many years to pay them off. In my view it's criminal. If you're writing a loan and believe there is a very risk of delinquency, you shouldn't be writing the loan, otherwise the rate should be "reasonable". In the current environment where money borrowing is nearly free, 20% is criminal. What's more, you take a person with borderline credit (and questionable judgement) and greatly increase the chances that their credit will go further south with these predatory practices, thereby justifying an even higher rate. It's a vicious cycle. I don't believe in policing people's decisions, but when the bank/credit agencies profit from their questionable decisions at the consumer's expense, it pisses me off!

[/rant]

 

[MoToys]

The Government can do nothing about it. Western sky operates on a reservation. As such they have little ability to collect from deadbeats.
It's the trail of tears all over again.

 

[Creditor]

They should ban these kinds of rates. The interest is so high on these loans that it would take many multiples of the original principle and many years to pay them off. In my view it's criminal. If you're writing a loan and believe there is a very risk of delinquency, you shouldn't be writing the loan, otherwise the rate should be "reasonable". In the current environment where money borrowing is nearly free, 20% is criminal. What's more, you take a person with borderline credit (and questionable judgement) and greatly increase the chances that their credit will go further south with these predatory practices, thereby justifying an even higher rate. It's a vicious cycle. I don't believe in policing people's decisions, but when the bank/credit agencies profit from their questionable decisions at the consumer's expense, it pisses me off!

[/rant]

Yes, thats what we need. We need the government to step in and protect everyone from making a bad decision. More government regulations, that is the answer to all of our problems.

 

[Roots]

They should ban these kinds of rates. The interest is so high on these loans that it would take many multiples of the original principle and many years to pay them off. In my view it's criminal.

There's a reason that Western Sky operates from an Indian reservation. I don't believe they legally could operate outside of one.

 

[trainer]

The creditor usually wins.

If the creditor didn't usually win, then nobody would loan money

 

[RKA]

Yes, thats what we need. We need the government to step in and protect everyone from making a bad decision. More government regulations, that is the answer to all of our problems.

I not naive enough to say that it's always the answer, nor am I naive enough to say it's never the answer. If the private sector fails to police itself or they engage in predatory lending practices, then yes, there is only one gorilla that's big enough...

 

[Mario]

There's a reason that Western Sky operates from an Indian reservation. I don't believe they legally could operate outside of one.

I feel the same.

 

[ptschram]

What the trucks are giving you is a revolving line of credit, which is similar to a credit card. If your credit is good you should be able to open a revolving account at 0% APR for 20-24 months. Even a lot of non-card revolving credit issuers do 0% APR. I financed my backyard patio through GE Finance, 0% for 24 months on an $8,500 project.

If your credit is rotten or if you have no credit, well, I guess 28% and higher is what you can expect. But if it's clean there is NO reason to pay exorbitant interest.

Snap-On offers several different credit plans depending upon the amount financed and the credit-worthiness of the individual.

"truck" credit is interest-free but it limited in amount. Tool storage units are typically sold on longer term contracts and the rate varies by individual. Over $600 but below $1000 can be had on a six-month term for 1%, IIRC.

If you have horrible credit and the driver has good standing with Snap-On, you can be financed up to whatever your state's maximum rate is.

It might sound bad, but for someone with no credit or poor credit, it can be a credit-builder and gets them tools to earn a living with.

 

[86k10]

Years ago I did a $1500 tool buy and had Snap On corporate finance it for 18% in 1996 and they never reported it to the big 3 credit report agency's.

Then in 1999-2000 ish I did another one with Mac for about 18% and they did report it the the at least on of the big 3 if not all 3 and helped me built up my credit. It was my first thing to show up so it did help me.

For the price they charge for there boxes they should give 0-5% with good credit. I want to buy a matching cranberry KRL791 but for $4200 plus tax I better be able to drive it to work.

 

[csargents1546]

Holy **** batman. And people complain about 20% interest. Those people have no scruples.