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The pay off early financial mistake

Fire Truck Financing Payment Calculator

Payment Estimator

Estimate fire truck payment for budgeting purposes.

Fire Truck Justification Kit

Justifying Kit

Show your council buying a truck now makes financial sense.

Financing Kit

Learn options, best practices, common mistakes, and money saving ideas.

Fire Truck Financing Approach

Our Unique Approach

Our typical community saves over $11,000.

Here’s the single biggest mistake I see most fire departments do. And they think it doesn’t cost them anything!

Almost 100% of fire departments who call ask the same thing –  Can we pay this off early without penalty?

The department is silently saying 2 things – 1. We can afford a higher payment but want the option of lower payments, and 2. This is a free move if there is no penalty.

It’s not free and here’s what it costs.

While there is not a penalty, the department pays a fairly high cost.

The chart below shows two different financing plans for a $400,000 truck. The red bars are the interest paid by signing a 10 year financing plan and paying off in 5 years. The green bars are the interest paid by signing a 5 year financing plan. Both assume the same interest rate (although a 5 year rate will be lower in reality).

The total amount of interest paid for the 10 year plan paid off in 5 years is $45,022.

The total amount of interest paid for the 5 year plan is $33,594.

The10 year/paid off in 5 year plan costs 34% more!

 Summary

Financing mistakes compound. Which means they get bigger with time. If you are considering a lower payment than what you can afford and paying off early, you are making a costly mistake. Simply sign up for the payment you can afford.

FREE TOOLS AND INFORMATION

Get free tools and info for each step of your fire truck purchase

Early Stages

Justifying purchase, setting budget.

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FINALIZING TRUCK PURCHASE

Ready to sign contract, analyzing discount offers.

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FINANCING PURCHASE

Set payments, pay least cost, learn about financing.

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