Typical financing terms

[Ankur]

What are typical financing terms on stretches and sedans. Basically range of interest rate, time to pay off, monthly payments.

For say a $50K loan what happens?

[limogal]

Originally posted by Ankur:
What are typical financing terms on stretches and sedans. Basically range of interest rate, time to pay off, monthly payments.

For say a $50K loan what happens?

You need to decide if you're leasing or doing a straight finance. Always do the lease to own; go for the $1 buy-out and avouid residuals! New limos are for 5 yrs; old limos are hard to get good financing on.

[limogal]

Oh yeah and be sure you shake out any bird dogs! This means don't let your salesman put the screws to your finance company for a kickback. ECB is notorious for this; those guys build in 1500 each deal w/Advantage so be careful!!

[limofinance]

Hey Ankur & Limogal: Financing is a bit more complicated than you may think. Banks/leasing companies make their decisions about whether to offer financing (and for how much (the loan amount) and for how long (the term)) based on a number of factors: your personal FICO score, your personal borrowing history (this is not necessarily your FICO: what have you borrowed and paid off in the past?), the health of your financials (generally bank statements), the year, make, model, mileage and builder of the equipment, and length of time you've been in business. Banks look as carefully at the limo as they do your credit -- banks generally don't finance limos that are 5 years old or older, or those that have over 100K miles (and if they do, the rate will be higher and the term shorter). Start up companies are usually required to put 20% down. Maureen Gill limofinance@live.com

[Ankur]

What might be your thought on leasing, NOT to buy but get a fresh pair of wheels after the term is over.

[J.Scott]

Only deal with a local bank you know and trust. Relationships are everything. Stay away from the limo flease and financing sharks and come up with as much money as you can without financing.

[Geoff Levine]

Originally posted by Ankur:
What are typical financing terms on stretches and sedans. Basically range of interest rate, time to pay off, monthly payments.

For say a $50K loan what happens?

I qualified for an SBA loan. They require you to put in 20% into your company. Not 20% cash of your loan, but things like computers and office leases, etc... They were very flexible(the bank) and really helped me get started. They gave me $45,000 at 10% interest which dropped down to 8%APR(plus some initial loan points). Overall, I'm happy with it. There should be a local small business counselor in your area to help you with advice and a business plan for free.