Home » 5 Common Fire Truck Financing Mistakes

Why do fire departments make these common fire truck financing mistakes?

Financing a fire truck is not like financing anything else.  And the people who have to make the decisions rarely have the financial expertise to dig into and understand all the hidden traps in these complex financing offers. 

Now, there is a way for you to get the help you need.  You’ll get some common sense ideas laid out in a straightforward and easy to read format.  No confusing jargon.  Straight information.  Only from the FireLending Process™.

1. Getting the wrong payment plan

2. Paying too much to borrow money

3. Spending too much time borrowing money

4. Committing to hidden expensive terms & conditions

5. Borrowing themselves into a financial trap

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1. Getting the wrong payment plan

What would you do if your payment was due in March but you don't receive your funding until October?  Your choices get scary. But this happens all the time when your banker does not ask the right questions. Questions that an experienced FireLending professional will know to ask. 

Or, what happens if you still owe money on a truck that has outlived its usefulness. You get hit with a triple whammy – higher repair costs, more out of service time, and a truck payment on top of it all.

These are just a few of the situations that we see everyday when financing fire trucks. These common mistakes happen because the local bank does not understand the complex requirements of fire department loans. They think they are just loaning money.

Nothing could be farther from the truth. When a fire department borrows money to finance a fire truck, they have unique needs and requirements beyond just getting a loan.

That’s how the FireLending Process™ from First Bankers will help. In the Idea Step, we’ll ask the questions learned from financing over 3,000 fire trucks. Questions that your banker could never think to ask in their lifetime, but questions whose answers will save you from lots of problems when you finance your new fire truck.

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2. Paying too much to borrow money

What would you do if you found $7,000?  That's the amount most departments overpay when they borrow money for a new fire truck. And that overpayment is getting higher as truck prices increase to record levels!

They overpay because they focus on 1 factor – the interest rate. In fact, there are 7 Total Borrowing Cost Factors that determine exactly how much interest you pay. Banks are eager to let you focus on the interest rate while increasing their profit on the other 6 factors.

The stakes have never been higher. With tight budgets and larger purchases, any little mistake can be fatal to fire departments.

We know that most departments waste $7,000 because that is how much the average department saved when we developed our exclusive FireLending Process™. That is money that would just be wasted when borrowing money to finance their new fire truck.

The Idea Step of the FireLending Process™ will examine all 7 Total Borrowing Cost Factors and provide an apple-to-apple comparison of all your choices. You’ll know the best deal and you’ll know why you are saving money when financing your new fire truck

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3. Spending too much time borrowing money

How much work do you expect to do when financing your new fire truck? Are you expecting someone to dump a bunch of documents in your lap or do you expect to have the specialized help to get the financing contract signed legally and properly?

We work well for the second group. The Sign Step of the FireLending Process™ is designed just to save fire fighters hours of time when signing the financing contract.

We know that you have other things to do. You can’t afford to spend your time figuring out legal documents and coordinating all the legal IRS requirements.

We don’t require complex and confusing applications. We don’t just send you a bunch of documents to figure out on your own. We don’t make you chase down all the legally required documents and signatures.

We do all that for you AT NO EXTRA COST TO YOU. It’s included. NO surprise fees or charges showing up later.

Other banks make you complete all the legal filings and notices and expect you to pay for them, too!

That’s why our customers rave about the service from financing their new fire truck with First Bankers.

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4. Committing to hidden expensive terms & conditions

Have you ever heard of a lien release fee? Or a balance inquiry fee? Or a lost deal fee? Or would you commit to a financing contract that made you pay every penny of interest even if you wanted to pay it off early?

The fact is that departments commit to fees and terms like this every day without knowing it. It’s buried in the fine print. Banks know that they can win your business with a low rate but improve their profitability by nickel and diming you later on with a fee for everything. The banks even have a name for it – they call it "Yield Enhancement". They know you have no choice except to pay whatever they want to charge you.

Our philosophy at First Bankers is simple and easy. We don’t charge any fees. You pay the payment we provide and nothing else.

Sometimes we may have a slightly higher interest rate, sometimes we won’t. But you will always know what you will spend with us. NO hidden fees that you will be forced to pay later. That’s why our customers rave about financing their new fire truck with First Bankers.

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5. Borrowing themselves into a financial trap

How would you feel if the financial decision you made today prevented your department from buying a fire truck in the years ahead? Or your department had to select an unavoidable and expensive financing choice to get the next new truck later?

It’s a common problem. Departments get caught up in the rates and terms of today’s purchase without understanding how their current loan may help or hurt a future fire truck purchase, and most banks lack the experience to help with this vision.

The good news is, this problem can be avoided with the specialized help from someone who only finances fire trucks; someone with the experience to see today and the future. Someone who will offer you ideas to get the fire truck you need today AND make sure you can still get the fire truck you’ll need later.

In the Size-Up Step of the FireLending Process™, we ask the questions that will help avoid this future problem.

In the Idea Step of the FireLending Process™, we offer some ideas that will help you get your fire truck today and prepare you for the next fire truck you’ll buy.

Financing a fire truck is more than just getting a loan; it should be part of an overall financial plan to keep your fire department safe and modern.

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