Financing Large Tools or Boxes and Credit Tips

[@snapmac5547]

I've seen guys buy new tools on credit from the truck and sell them immediately for less than they paid to get cash to pay other bills.

[@JDog23332]

Snap Mac yeah and stop paying their weekly bill. Still in debt and shows on their credit report

[@woosukchoi2897]

When I bought my Snap on tool box, I didn`t know the interest rate what Snap on credit offers. After I got the box, I read the paper and realized the interest rate was 18.90%. That was crazy number. I wouldn`t pay extra 1000$ as an interset so I paid off my all debt in 3 month. After that I never make debt when I bought the tools in tool truck.

[@SAAutoRepair]

Here's one of the best concepts I've learned when it come to spending (cash and credit). The "It's just....." will put you in the deepest debt. Meaning, when we (or a salesman) tell ourselves it's ok to spend because "It's just $20 or $30" or "It's just $25 a week". It's almost never the big items that we spend on. Heck, a cup of coffee and donut in the morning is $1300 a year.

[@Angelzn6]

It’s crazy I saw this. I got scammed by a Mac dealer back in 2016 for a macsimizer box. I had 14% with a 720 credit score. I bought a 3/8 impact that he didn’t mention he put on my credit. Looked and all the sudden my apr was at 24% out of nowhere. Contacted Mac, only to find out the guys scammed a bunch of people the same way and got fired. Luckily our cornwell dealer bought me out of my box and gave me a pro series triple bank with a free hutch for $5k at 9% apr which is the lowest at all of the tool dealers here, that I paid off in 2 years. Sad that some dealers will really rip you off.

[@davidkanengieter]

Starting out, I made a lot of bad decisions and using credit cards was one of them. It took 10 years to get my head out of my butt and get things squared away. We don't have any credit cards anymore, just a bank card. It was a huge stress relief. Now if I could stay off Amazon after watching some of your tool reccomendations.....

[@martinschaffmeir7729]

Great post sir. I don't know how many guy's will listen but you tried. My driver has a deal on a used box and as much as I want to buy it I know it's a bad idea, I just don't have 6 grand laying around and at my age, 59, It just doesn't make sense to spend that kind of money

[@brandonrobinson4124]

Another tip I'd like to add is if you have a little tool debt on a credit account and your score has increased since you opened your account talk to your tool dealer. I was able to take my Matco PSA from 19.99% to 9.99%. It's still not good to use the credit account unless you really need it but for my 9.99% interest is a lot more reasonable lol.

[@gregv7193]

Friend of mine got his Snap on tool box from the Snap on Website via his bank loan WAY!!! Cheaper with way lower interest Snap on wanted to do 19% interest vs his bank with 10% interest!! And BTW he saw the exact box he wanted on the truck and just got the part number and ordered it him self.

[@gregoryfairchild2460]

Bought my snapon $11,000 box for $6500 and still owe about $900. Credit wasn't so good. But that's all I owe right now

[@j.walker3498]

my dad bought one in 1970, its worth more today than he paid for it.

[@jamesr.riverasr.4678]

Those boxes are great but I’m not going to put myself into a hole. A HarborFreight box is big enough to suit my needs and cover all the expensive tools I have.

[@jeffsmith8066]

Being in this industry for a bit now it's crazy seeing how much techs finance for tools. I see techs 50+ years old still financing tools. Not to mention most dealers will give you a deal if you pay in full if you just ask.

[@busbqbill449]

nice video as usual. Pay cash for everything. dont buy anything without the cash except for a house.

[@JRC54]

And when you buy a house try to pay as much of it off the first 10 years. whether that would be putting more down when buying it or paying extra mortgages each month.

[@CreepinCreeper145]

@@JRC54 Unless if you go through NACA; buy down as many points as you can if you intend to go through all the 30 years

[@andybub45]

Correct.

[@wrenchy5841]

When i started i got a 15month zero interest credit card and bought most of my tools and paid off the card before the 15 months were over! Great idea

[@Toyotas_n__Tools]

Regular banks dont do unsecured loans anymore and what I dont hear people push that are very popular out here called credit unions, and theyre the ones that give the old style loans that banks were known to give at one time in life.

[@roaddoglv]

You can still get unsecured loans from a bank. It depends on your relationship with the bank. You can also go to Lending Club or Prosper and get unsecured loans.

[@jedidiah4004]

I just took put an unsecured loan fromy local bank which is a fairly large chain in the northwest

[@christopheryoung826]

Auto withdraw from my account on pay day. Worked out good for me so far

[@skee0310]

Dave Ramsey! That’s what I fallow. Priorities first.

[@jonnylong7927]

Your stupid! And you spend your money on stupid stuff! And your an idiot! And NEVER spend your money or your stupid! That's Dave ramsey's system.

[@andybub45]

@@jonnylong7927 No, you are stupid if you go into a large amount of debt. Spending money is fine as long as you can afford to do so.

[@SuperMarioDiagnostics]

Great points 👍 I'll get a pico before I get a new box though 😉

[@christopherkassner8894]

Major debt can cost you hours. If your always sweating how many hours your turning. People will notice. A relaxed tech tends to do better , more efficient work. That leads to less mistakes or comeback’s. The best rate snappy has is 9.9 %. And that is way to high. Any more than 6 % and you should wait on that shiny new scan tool. I take advantage of their discounts. So I buy using snap on credit. Then pay it off a month later with my equity line. 1/4% above prime

[@aaronjulius3241]

All depends of the person and what kind of ambitions they have. I went through times in my life with major debt- wasnt always the easiest times but it was my motivation to get out there and work hard. I learned to work fast and accurate to get the next job faster then the rest. People did notice this. I was clocking 60-70 flag hours a week. NEVER spoke a word to anyone about my debts through those days. Never had many comebacks either. Only thing people would say- "that guy is an asshole, he makes all the hours, hogs all the work!" Those same guys would never push hard, never show up early or stay late, never buy the right tools, upsell, or try and work any faster. Most were very good techs just not driven. Yes there are some guys out there that arent good, dont care how they make the hours and dont care at what cost to flag hours. But not personally something i have seen very often.

[@DOYLECLEVERLOBE1]

Dave Ramsey told me to have a few extra kids to trade for tool truck credit.

[@orchestracelloplayer]

I have 5.8% interest on my used matco box, financed through matco. I’m happy with that, paying it off early.

[@michaelsieber6601]

Jacob Haas didn’t know you could get that low off of a tool truck

[@muddytrails1666]

Man, ever since I started looking at things from the perspective of ROI, return on investment, my impulse spending has dramatically dropped. This message is on point. ROI on a new tool box... not as much as an investment at this time. And the same with a truck or new whatever, so far. This is a great message. During the last economic fallout my credit dropped in the 500’s. It was tough times. But with wise spending and utilization of credit now it’s in the 800 range. I know I can finance just about anything I want but looking at things through ROI has really changed my perspective on impulse spending. Especially when I have to remember I have to pay additional fees to borrow money to pay back the loan or money I borrowed.

[@automedic9781]

Making my last payment on all my trucks today, and then next step is to find someone in the Carolinas who wants to buy my box. Can’t wait to have all these payments gone, and just charge what I need on my credit card then pay it off immediately

[@Mac-mu9cs]

Took me far to long to get the SO credit paid off. Careful purchases are a must. Credit free debt is great to have. Took me a while to get there. Good thing once you get “good” credit theres deals to be had. Most large purchases now are done with credit cards for points, no interest deals, cash back. Last “big” purchase was 15 tool Milwaukee tool buy. No interest for 18 months and $500 cash back for spending $1500< how do you pass that up……you MUST pay it off or you get 18 months worth of compounding interest at the default rate. Look for used tools when starting out. Be careful. I have tools I wish I did not buy when starting out , that money could have been spent better.

[@ghost13829]

$300 a week??? Insane nobody at all or ever should go into tool debt period. No loans, no truck debts. Buy what u need and them save for what u need. No wants, just needed tools. No lavish boxes, just what works no fancies. I'm a mechanic and have done my best to be minimal and buy whats needed. Paychecks fluctuate horribly as a mechanic your personal bills outside are constant.

[@halopersin]

As much as I love this Channel I worry about a few things in this video. I’m a young guy and don’t have 30 years of experience. I do however follow Dave Ramsey’s plan. I bought a krl722 in almost brand new condition with cash. It was a great accomplishment and felt great knowing a owned the box from day one. When I bought my first box it was on credit and I feel like I was being ripped off because I had a stupid interest rate. Yes I had no “established credit” but I still feel like it was a rip off. I’m not saying we are right or wrong I just feel like debt is dangerous because as humans sometimes we have self control issues. I do appreciate you warning us about being responsible with our level of debt. I see your perspective FRM and thanks for the video.

[@suezanarms1287]

Thanks Mike for answering my question the best way you can. I read all the views below and got the hint and thank you for taking your time to answering me on the other video rant. ... Have a good day. ;)

[@joelopez40oz23]

I’m a Dave Ramsey troll and here to cause havoc.

[@JB-423]

one important trick is to find shops that have their own boxes.

[@JRC54]

As a young tech I would have a cap off on tool truck Dept. $500 then pay it off. Now I don't put any tools or box on my personal credit. I use my buisness credit line then write it all off.

[@genxmurse7019]

There's always a good deal at the local Harbor Freight, or someone parting with their stuff on Craigslist. Even if it's a rusty old box, it's still way, way, way better than getting deep into debt!

[@BradyK29]

This is some Great Advice FRM. Never know what will happen down the road so it's good to have some extra money put up for those hard times.Its good to be prepared than not being prepared.Great Video FRM.👍

[@MrAnonymousRandom]

Ideally you would be able to buy all your big ticket tools used off Craigslist (cash) and eBay (credit card). It's also good to do your research before hand and know what you want before you even hop on the truck. And if you avoid financing stuff, that leaves you in control. I probably spend more off the truck than I do on the truck when it comes to tools.

[@k_werx]

just upgraded to the krsc46, from harbor freight 4 drawer black tech cart, simply best decision i’ve made as this cart will stand next to me for the rest of my career

[@roaddoglv]

When I got my last box the best snap on would do is 17% even though I have excellent credit. Bank gave 4%. The whole tool truck model is based on high interest credit. Snap on makes a big percentage from financial services

[@nicholaskehren6153]

Can you please record a video of what a good service writer does for their technicians vs. Bad? How are your service writers at your shop and what was the worst service writer that you ever had before?

[@mechanknuckle]

Money management is something that most young people should be taught, starting in elementary school.

[@xephael3485]

Don't buy snapon or most expensive...go HF, husky, etc.

[@gregblau8082]

Everyone has utilities, insurance, whatever but I try to have as few recurring payments as possible. It’s nice to be able to spend the money you make.

[@ahmeterdemir9097]

Excellent advice not only for young mechanics but for all the young people. This video should be pinned on top of all the you tube videos. I hope some young people will watch this and take your advice. Thanks for doing this.

[@nismo2070]

I made poor financial decisions early on in my career as a tech. Most tool truck operators don't give a rat's ass about your ability to pay off debt when they talk you into that 6000 dollar box. ALL of my tools are paid for now. It may have taken decades, but they are mine. Great video! Thanks!

[@smookee408]

Excellent video FRM. I’m exactly the same way as you on credit card usage. I have very low to zero utilization and get points to travel. Last year I spent almost $5k on tools. About 1/3 tool truck,eBay and Amazon. With the tool truck it was super easy to get a spreadsheet with all of my purchases for 2018. All my tool expenses get added up and sent to my accountant. FRM love your content!

[@Drunkis1337]

Sticking it in too much will always get you in trouble. Just saying. I'm actually looking into upgrading my box perhaps this year or next year. Oddly the snap on flyer had the KTL1023A on it then you post this video. Not sure the KTL1023A is the one for me however it was an option. The personal loan was something I was thinking about if snapon was going to offer me a bad rate. Another thing is don't jump into a loan if your not sure its right for you. You can get another offer later when your ready. Another thing I owe snapon 32 dollars as of today. I'm also looking into refinancing my house to a 15 year mortgage this year. Look at the bigger picture about can you afford this is something else happens. A nice box is great to have if you can afford it. Tools make you money not a box. I worked out of a 40in craftsmen roll cart and chest for 11 years before i bought my first snap on krl7022 which i out grew real fast. Consider your growth as well when looking at a box. They fill up real fast if go to small at first.

[@archangel3237]

I love the shop I work at, we get a garunteed hourly and make flat rate if the flat rate total for the week is higher than the hourly. And my boss lets me do side jobs in the shop

[@burtpilon1735]

Snap on is the devil until I pay them off good heads up for the young folks starting out

[@anthonyb8691]

Both great channels I watch both frequently and got credit tips

[@ifitsnotbrokenfixit1193]

Thanks for the video FRM. Cash management is key.

[@terrybarkman3219]

I got my matco triple bay 5s 28 deep a little more than a year ago, my matco guy was really good and trusted me. it got put on the ra account. He got my word of 800-1000 a month and was paid off within a year for a 9.000 box.and NO interest!!

[@DirtyDanRacimg]

I will never buy another tool truck tool box, i got a krl snap on with a side cab and 5 years later its a POS, rust, dents easy and hardware wear for a tool box and cab that cost 12000$ is pretty bad.

[@patjesscole2709]

I love the tool truck 😋 look forward to it all week snap on in the am matco in the pm mac sold his truck

[@wyattoneable]

YOu hit the nail on the head. There are options that people sometimes don't explore. Nice one.

[@Diagnosedan]

Over here you don t pay for your tools the shop owner does.

[@kkovler1]

that's what I was thinking, there must shops that buy expensive tools like scopes, so the techs have the proper tools without going broke first!

[@Diagnosedan]

@@kkovler1 Exactly, doctors don t bring their own hartmonitor machines to the hospital 🤣🤣

[@SuperMarioDiagnostics]

DiagnoseDan that's pretty sweet

[@floppycoc1046]

Its unfortunate but most tools that the shop buys get lost or broken quickly. No respect for community property. Most dealership are buying tool boxes for techs but all the stuff inside is paid by the tech. Really if you what to have nice things you have to buy it yourself and protect it

[@Diagnosedan]

@@floppycoc1046 You should respect other peoples tools more than your own tools.

[@RIDEONDIRT14]

I've had great credit all my life but snap on wanted 19% so I pulled a private loan through my bank for under half that... it wasn't due to bad credit it's due to big tool truck brands are sharks

[@BAMotorsports]

Another reason for high interest is they are issuing unsecure loans. Higher risk on there end.

[@CopCat34]

That was an excellent video on technician money management.

[@scottpearsontoolsmore185]

Great video thanks brother. I believe you hit it just right . I worked with a guy who always had to one up the other. He got so far behind on everything. We older ones tried to tell him but wouldn't listen. He lost a lot including his wife. So yes sir everyone is different but you have to watch what your doing. Keep up the great work see you in the next video thanks again brother

[@johnburgett5040]

I've never established credit. I've always paid cash for everything. That's how I was raised.

[@garyharms276]

There are obviously more than 1 way to think about this , I personally don't buy anything I can't afford that day , thanks for the Dave Ramsey reference..

[@colelehn3379]

So basically you’re saying put yourself in debt to buy and 15k snap off POS box when there are cheaper boxes with better quality right? You don’t need credit if you have cash right? There’s this thing called money management… if you’re good at it, you’ll have money. If you pay with cash, you’ll never be in debt with loans or credit cards

[@anthonygm85]

Live with in your means you dont need snap on mac everything, I find SK to be a great option for tools, and just started looking at koken. But I tend to pay cash up front for my toys

[@radcoolade1481]

20k for a big double bay no lockers in 2022. Triple bay and Lockers 30k

[@jcmobilediagnostics8611]

Don’t use credit to purchase liabilities. Use credit to purchase assets. Liabilities cost you money, assets make you money.

[@autobodytechdave3338]

Bought a snap on krl1163,in 2016,paid it off in Sept 2018,work a lot of OT,paid extra, fills good,no tool payments

[@ashtonnuckols2663]

Lol this brings home to me . I was dumb yrs ago buying shit sn putting it on credit account with both snap on an matco. >,> building it back up sloooowly

[@brettpindell2196]

Don't go into debt for a job! It's crazy enough that your employer doesn't supply tools.

[@ironman1518.]

EXCELLENT RECOMMENDATIONS!! Thank you, BUT........unfortunately you speak words TOO many do not know or understand........."savings, credit ratings, loan percentages, credit debt, " etc etc etc.....and are easily lured by:"It's only $25 a week more"............(they are not told or forget the $25 per week are FOREVER.....).

[@pocketPliers]

Debt is dumb, Cash is King. -Dave Ramsey

[@burntxtoastt]

My tool truck don’t charge interest

[@712gln]

10% and 20% are your options for Snapon secured. Loan

[@workingclassgarage]

Wise man, good advice.

[@kkovler1]

credit cards don't have to be payed off every week, there is a grace period of about 1 month before they slap on high interest fees.

[@flatratemaster]

It is not about not paying interest, it is about cash management and credit utilization, keeping my balances as low as I can even though I put several thousand dollars on my cards a month, if you keep a balance on a card and they close the statement for the month , it will report you have $xxxx.xx in debt, no matter if you pay it off the day after they close the statement, it will raise your utilization % and may lower your credit score

[@montestu5502]

Flat Rate Master - That explains your low credit utilization as I was wondering how you were at 4% and I am more like 10%. Now I get it!

[@unclesnappy6541]

I noticed you didn't spout off about MAC tools credit policies when you started hammering Snap On and Matco. NONE of the trucks credit accounts are worth a damn. Snap On owns their own credit company so they are charging way higher to pay off the billion dollars they spent buying it. Matco, YOURS and Cornhole all use secondary or deeper lenders thus, putting you in a higher % payback regardless. The buyers credit score reflects greatly on what's offered to them. Credit card debt is highly scored against you especially if it is over 30% used on the card(s). Be a smart tool shopper not an impulse buyer when it comes to this preyed upon job industry and sales tactic deeply thought about in these ripoff tool truck businesses.

[@jonacolt455]

So can I use another credit card to payoff snap on credit? Cause mines with have lower interest rate

[@willyqueen4066]

Thanks great video and you are very wise !

[@Eagle2pro]

Do you have a video on cleaning your tools and how to make time?

[@MLMechanic]

I’m in a tech program now at my local community college after working a GS job for the last couple years. I’ll be starting at my local Chrysler/dodge/Ram/jeep/Fiat/Alfa Romeo dealership as an apprentice next Friday. Do you have any recommendations for brand specific tools I’ll need? I have a full set of 1/4 3/8 and 1/2 sockets pneumatics handbooks etc and a mid size rolling tool box.

[@normansmith7806]

Good advise Michael !

[@EXOVCDS]

Sometimes... I buy stuff from the tool truck guy because I feel bad for not having bought something for quite a while. Is that bad? =(

[@firsttimediesels6289]

There's no interest on my Mac truck?

[@steevest-gelais4679]

Very good and accurate advices

[@colelehn3379]

You have credit card debt every time you use it

[@stevemazzarella9259]

You forgot don’t get married and have kids... That’s where all my $$$ went!!!!

[@fumanpoo4725]

I live paycheck to paycheck. I have a bowel disease and no insurance. My probation fees leave me with about $30 per week to eat.I have no credit, no future, no hope.

[@classicwefi]

I'm glad to be loan free since 07 when I paid of my truck I pay off my credit card every month . I guess it pays off to be a cheap ass 😄

[@ClassicBMWFanInQuebec]

It's called living within your means :)

[@BADD400]

Great video

[@scuba422123]

wise and smart this vid is!

[@johngibson3594]

Sound advice

[@guy-uo8nv]

If I can't pay cash I don't buy

[@xandersmith9832]

I'm at 9.9% with my snap on EC account

[@andybub45]

Heres a good tip: if you dont have to finance, dont.

[@azmrblack]

To me it's kind of sad you have to educate people about these basics about credit, debt and financing their parents should have before they were 18...

[@maplemanz]

Flat rate simply sucks.