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We just got word back from the bank that they're pulling the initial loan approval at a good rate, but will offer us a loan at double the rate, only (and all) because the PM is considered a 'commercial' vehicle. (and we need to have a business buy it)

Ok, I get it. Nearly all PMs are for commercial use. But we are two people looking to use it for weekend RV drives. Certainly not 8 hours a day driving around town by employees who don't care about it.

Do you think there's a chance we can convince the bank to NOT classify it as a commercial vehicle if its end-use is the farthest thing from commercial?



Also just realized we'll probably have to deal with this for insurance as well. *sigh*
 

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I don't know your rate but Chrysler will do the loan for 3.65 percent I think. I plan to do it through my credit union who seem to be less stuck to some rule and willing to listen.
 

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I had the opposite problem; nobody wanted to sell me insurance because it was a commercial vehicle. I ended up buying it through my carrier for $110/mo, but progressive quoted me $630/mo for insurance. They said that was the best they could do. I said "630 is more than the loan payment. Does that mean you expect me to total the vehicle once a month?"

In ohio, i once registered a school bus thst i converted into a cargo hauler...as a motor home! This got it non-com motor home plates, and saved a bundle. I cant imagine something like that cant be done in your state. Its just a van, same as any van for the last 50 years.
 

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Discussion Starter #6
I don't know your rate but Chrysler will do the loan for 3.65 percent I think. I plan to do it through my credit union who seem to be less stuck to some rule and willing to listen.
Bank was going to do 2.1%. :D We're going to go back and appeal. And also stop by the local credit union that we're with as well.

Still... bit annoying to be classified as something you're not. (hmm... that could start a deep conversation, somewhere else)
 

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Yeah, I had great luck at my credit union also, 2.5% on a 6 year. American Family insurance didn't have to declare it as a commercial vehicle either. It is my personal vehicle after all. I don't need my bank or insurance company sticking their nose too far into my business. Ask me no questions, I'll tell you no lies.>:D
 

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Your issue might explain something weird that happened to me right after I bought mine.

I received 2 letters in the mail from different banks saying they declined my loan application. I didn't understand the letters because I didn't contact those banks.

The RAM dealer said my credit rating was 860. The dealer got me a super low interest rate because of my high credit score. So anyone declining a loan from me, made no sense.

Now I'm thinking those 2 banks that shot the dealer down when they called about a loan for me, actually shot me down because they classified it a commercial vehicle.

Mine is personal use and dealer didn't give me any up-fitters deals.

For insurance, my company didn't have ProMaster's in their systems, so they just wrote a policy based off the sales price.
 

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Zyzzx, The problem is the bank, find a different one that would appreciate your business!

Just because the vehicle is a commercial vehicle if your intended use is not for commercial purposes the loan should be a personal loan. Most credit unions are great to deal with for loans and you can become a member at most credit unions by walking in and asking to become a member, if you're not a member at one already.
 

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I also received a denied credit letter from a bank (I think is was Chase) because it was a commercial truck. Apparently the dealer finance guy tried them when I purchased. I too have a credit score in the 8's but I thought 850 was the max score? He ended up using Wells Fargo at 2.2%. Using Geico's web site, the Promaster was listed and cost me only $219 for 6 months. I didn't register my van as commercial with Geico, they had a category called "artisan" for carpenters, tradesmen, locksmiths, etc. Being a business, I was eligible for and received $4000 in rebates.
 

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Zyzzx, The problem is the bank, find a different one that would appreciate your business!

Just because the vehicle is a commercial vehicle if your intended use is not for commercial purposes the loan should be a personal loan. Most credit unions are great to deal with for loans and you can become a member at most credit unions by walking in and asking to become a member, if you're not a member at one already.
Dead-on here...

If you can't explain to your bank or insurance company that it's for personal use not commercial, dump-um! There's plenty of places happy to give you a loan.

This should be a simple "check mark" on a form for them and then they continue to process the loan or insurance.

I've been using credit unions since 1980 when I joined the A.F. At 18 years old. Always great service.
 

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.....but I thought 850 was the max score?
That's what I thought too. I went in knowing I had an 848 because I had just refinanced my home. I told dealer I had 848 and wanted super low interest rate.

He comes back to me with even higher number and says something about credit scores being different for different loan types.
 

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850 is the highest for current FICO scores. The older, VantageScore method, went up to 990. I think its usually only used by "old school" lenders.
 

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My credit union has different rates for cars and RV's, but the terms for the RV's are 10 & 15 years. Of course the RV rates are higher.
If the bank is trying to steer you into a higher rate, walk out the door.
A personal vehicle should be taken on your word, work/salary reference.
Crooks have gotten huge sub-prime mortgage loans on stated income. Ridiculous.
 

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wow, i actually left progressive because of that, as i recall the difference was 2300 vs 3800 or something like that...and even then geico had some sneaky piece of **** call and ask what i use the van for...i said i have big dogs and i bought it to take them to the beach...no where on the vehicle does it have a company name, so...
 

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I dunno if this is helpful. But here in southern Cal. When we bought our used Promaster I had it licensed as a car. Yes a car. In SoCal. The land of red tape and goverment BS.
We had Allstate on our previous little put-put car which we sold when we got the PM. I just called allstate, they asked for the vin, punched it in. Told me it was going to cost $51 dollars a year more to insure.
And that was that.
Perhaps these PM buying blues come from what you are trying to license it as?
 

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As discussed before it depends on state. Here in SC they told be it had to be registered as a 'commercial' cargo van. Luckily my insurance company let me insure it for 'pleasure' use, since I'm retired.
 
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