How I Financed My 2020 Ford Transit Camper Van Conversion
HTML-код
- Опубликовано: 26 авг 2024
- The fourth episode of my DIY van build with Betty, my 2020 Ford Transit Cargo Van. Detailing how I financed my van purchase and the $35,000 estimated up fit, as well as the next best alternatives I researched.
Vehicle Financing Options
- Cash: Opportunity Cost
- Personal Auto Loan - 2.3%, “non-commercial" vehicles, medium repayment term (36-72mo)
- Dealership Financing - 6%, do not require a business license
- RV Loan - 9%, “RV” specific vehicle requirements, long repayment term (Up to 180 months)
RV Conversion Financing Options
- Cash: absolute best way to pay
- Personal Loan - 7-9%, unsecured, shorter repayment term, higher monthly payments.
- Credit Cards - Extend warranties on purchased products, expanded protections for the buyer, extremely expensive to carry a balance (9-20%)
Best Options for Homeowners:
- Mortgage cash-out refinance - replaces your existing mortgage restarting the 30 year term.
HELOC - barrows against equity on home, wide range of terms and conditions, similar application process to a refinance with lower or no loan origination fees, but higher interest rates than a cash out refi.
What I chose:
- Personal Auto Loan financing for the vehicle, needed a supervisor exception to be made, took 4 weeks longer and half a dozen hours on the phone to finally get it processed.
- Hybrid of “Cash” and “Credit Cards” for the cost of the renovation itself, using credit cards for the initial purchase for added protections and points, but immediately paying off the credit card with cash.
Who I financed through: www.navyfedera...
My Favorite Credit Card: creditcards.ch...
My Second Favorite Card: creditcards.ch...
__________________________________________
My Camera Gear 🎥: kit.co/ErikDPh...
Music Sourced from 🎧: artlist.io/
this is really good info. I had no clue about commercial vins vs personal. thanks for sharing.
You're most welcome! 🙏
Another option is do a basic, inexpensive build. Then upgrade as you have time and money. My passenger Sprinter cost $60k (financed over 4 years), my conversion cost $4k. It has a bed, sofa, galley (fridge, microwave), toilet, 1800W power station, Van Essential window covers. The next item will probably be an Espar heater. I'm still undecided about a shower. My point is, for a relatively small amount of money, you can have a rig with everything, albeit not fancy. And that's much wiser than paying for what you can't afford with a credit card, or tacking it onto a mortgage and paying for it (along with the interest) over 30 years.
D Lowe back at it with another great comment! I actually did a budget test build in my van for about $2k so that I could test out van living for a couple weeks before committing to the full conversion. You are absolutely right, and I was astonished at just how comfortable my $2k test run was. That being said, I know myself, and in order for me to last long term in a van I need a number of everyday amenities that my budget build was lacking.
@@ErikJohnson2020 I'd love to see that video!
I had the same idea of doing a temporary build to find out what I wanted before hiring a professional builder. But I'm so comfortable with my rudimentary build, that I may never do it. The only things a factory built Class B has that I don't is a heater, AC, hot water and shower. These are items that were outside my construction ability and that I felt ambivalent about. And 20K miles later, still do, although I may get an Espar installed (even though I live in South FL).
Erik! Such good info!
I love the suggestion to use credit cards to make the conversion product purchases for the point perks and safety features, then pay it off right away or each month to avoid paying interest.
Yep! Love those points!
Thanks man your content is very informative. Keep up the great work.
Thanks for this! I have watched hundreds upon hundreds of van conversation videos and not one brought up the difficulty in financing. Note taken!
Good to know I can do this through Navy Federal. This is my plan before my army retirement. Hopefully rates chill out next year.
I am so happy I ran across your channel, and yes, I did subscribe.
I'm planning on purchasing a Ford Transit medium roof top, I am a solo female vandweller. I'm saving to pay for the van in cash and apply for a personal loan through my credit union to finance the conversion. Any tips or suggestions you can provide would be greatly appreciated. Your channel is the first, I saw that spoke about finance, which immediately caught my attention. Also, your video comparison of the Ford Transit, which is my choice, the Ram Promaster, and Sprinter was right on point. I gained so much information, I've watched thousands of videos of van conversion and your video was easy to understand, you provided concise information. Thanks again!!!
Wow, thank you for the kind words! Sincerely!
If you can, I'd suggest trying to find a way to finance your van and then pay cash for the conversion. Vehicle loans almost always have lower interest rates than personal loans because the Vehicle itself offsets the risk for the lender, so they are willing to give them a lower rate.
Also, I'd say before you purchase a vehicle, spend some serious time flushing out exactly how much you think your conversion is going to cost. Down to to calculating the cost of the nuts and bolts and screws and the wiring - not just the sexy stuff like solar panels and a refrigerator.
If you'd like, I can share with you my master budget spreadsheet if you think that'd help you in your own planning.
Best of luck in your research!
Omg. I wish I knew people were able to get exceptions when I tried to get nfcu to finance a sprinter van. I was literally at the dealership with papers signed because they gave me a preapproval check, and then when the dealership called navy fed, the rep said I could not do it. This was in 2020.
I was a little heart broken since it was good deal and I drove 2 hours to get it.
I ended up buying a house after that, and was not happy so I sold it for a 60k profit within a year. Revisiting the van now but don't want to blow my profit on a van, so I want to relook into financing
Best relevant video on RUclips. Cheers.
Best Relevant comment on RUclips!! 😉 Thanks!
Thanks for the thorough detailed explanation. One other thing about a reverse mortgage loan is the rate can change on a monthly basis. So, if the loan is taken out at a 2% loan , it could go up or down. A person wouldn’t pay out of pocket every month. The loan balance isn’t paid off until the property is sold, which could be when all the original signers that live in the house die. Depending on the appreciation value of the house, the heirs could still make a profit after the loan is paid off.
Awesome! Proud of you for being like the dog with a bone and getting that loan.
Thanks Emily! 🥰
Wow u gave an eye opening in this video about financing van conversion. Thanks for this.
You're most welcome!
Thanks for the great advise....using credit cards for points is definitely a great idea.
You are most certainly welcome! Thank you for taking the time to leave a comment!
Thank you for sharing your experience. I found the information you provided to be not only enlightening but valuble as well .👍
Great video and advice. I learned this the hard way. New and used vans were hard to find a year ago when we started looking so we were super excited when we found a 2019 Promaster with 6500 miles a couple hundred miles away. The dealer arranged financing through a bank at over 8% interest - I assumed I could refinance through my credit union. That's when I found about the commercial vin... They told me I could refinance with an RV loan once the build was complete and it was registered as an RV... turns out that's not the case either. I completed the build with cash and I'm considering a home equity line of credit to get a lower rate for the van payment.
Thank you! Though, I'm sorry you learned the hard way.
That was very helpful, thank you. You basically got the van we're trying to get; we're hoping Navy Fed gives us a financing exemption as well.
Wow thanks so much for this video, very informative!
You are super welcome! I just watched some of your videos, what kind of van do you have?
@@ErikJohnson2020 it’s a 2013 Ford transit connect, looking to upgrade to a ram promaster tho :)
@@vtayhay I'm biased, but I feel like I've seen a lot of channels with Promasters that always seem to have something broken. 😬How has your Transit been treating you?
@@ErikJohnson2020 damn! Lol. Maybe a different model then. My connect is good, it’s just tiny. Definitely wanting more space :)
Awesome information!
Thanks for sharing the info
Ughhhhh........I just went through this same issue trying to get my van refinanced. What a pain. I even tried Navy Fed Credit Union and got denied.
Wow you got a great financial rate
Finally, someone who appreciates! 😆
Great video, thank you for the transparency.
Would you be willing to share the items you have listed in your excel spreadsheet? I'm building my own spreadsheet at the moment and planning everything
Thanks for the kind words! I'm still in the process of finalizing my master spreadsheet, and once finished it is actually something that I plan on selling for those who are interested. I totally understand the desire though, as this silly spreadsheet has probably taken me hundreds of hours to create. That said, you certainly will learn a lot through the process of creating your own!
I ‘m selling my house this month and plan to stealth camp in my pickup, until I decide what van to buy a year later. I don’t know how well I will sleep in the back seat and I ‘m fishing for alternative ideas on sleeping quarters. I’ve thought of staying at a extended stay motel, and may trade in the pickup sooner, lol.
Could I ask, after you sold your house, where did you live while converting your van?
The biggest advice I can give is to triple or maybe quadruple your build timeline estimate for your van, especially if you plan on doing all of the big systems, like plumbing for hot water, electricity, heating, etc. As for where to live while doing your build, I opted to move back to my parent's while working on my conversion. Thankfully they're tolerating my longer-than-anticipated stay. 😅
Did you consider just paying cash for a large SUV ?
Thanks for the info. Unrelated to financing but part of the "administrative issues" what about licensing? Does it get a Comercial RV or regular license and what is needed to satisfy whatever criteria the category require?
So you don't need a commercial license to drive Class B vans, but as far as registering your vehicle as an RV and also updating your vehicle insurance, those are two things you have to do once you finish your conversion and can show your vehicle now meets the RV criteria.
@@ErikJohnson2020 Thank you
If you dont mind what was your credit to be financed that low? Thank you!!
Interest rates were a lot lower back when I financed Betty, but my score was around 760 at the time.
Do you know if you get a personal vehicle loan for the van purchase and then get a personal loan for conversion, after build is done, can you then get an Rv loan to combine the two loans into one?
RV loans usually have a much higher interest rate in comparison to personal vehicle loans, and may or may not be any lower than some of the best unsecured personal loans, though they will have longer time horizons for the payoff period.
Honestly I'd avoid trying to finance that much of the project, as vehicles in general don't make for great long term assets, since they will only depreciate in value over time. In your scenario, your resulting "rv" would likely be worth much less than the value of all your loans purely because of all the compounding interest over time.
At least that's my best guess anyway. 🤷
@@ErikJohnson2020 thanks for the response!
Thank you for this video. This was very informative. I am in the search for a van process now and plan to finance through NFCU too. Hopefully, I am as successful with them as you were. Appreciate the tips! Did you get RV insurance or regular auto insurance for the van? If you don't mind me asking, who did you go to for insurance? USAA? When I was looking at RVs, I was planning to get insurance from USAA (via Progressive). TIA!
Were you ever able to finance through NFCU?
Were you able to finance through NFCU? And I insured my van under regular auto coverage and then increased the personal property coverage to 300k with Progressive.
I'm looking to refinance my van with Navy Federal. They are giving my the commercial van rates. Is there anything special they can do for me? Did you go in the office to talk to someone? I've only called their call center. I asked to speak to a supervisor as well and they took forever so I had to hang up. They are telling me I could go the personal loan option, but then that interest rate is higher.
Honestly I must have talked to half a dozen different managers until I reached one that was familiar with what I was planning and was able to get the exception made for my account. Also, mine was a new loan and not a refinance, so that might play some role, but I'm not sure. Best of luck!
Love it, it’s different! The secret to YT success - promo sm!!