Financing CNG Conversion?

[silkman32]

Still new to this forum so if this has been previously posted I apologize. I am in a big need for the government tax credit so I was thinking converting would be my best option. I am wanting to get an EPA certified kit installed through sno-motion if it will be possible for how slammed they are right now, but can you get financing for the 12K+ it will take to convert through the shop, bank, govt, etc? For how many people seem to do it I wouldn't think most people don't have that much to put down out of pocket.

[ajgiorgi]

Re: Financing CNG Conversion?

I don't think anybody finances that kind of purchase. If you go through the bank it would probably be a personnel loan and the interest may be high depending on your credit. You could check out the credit unions also, they usually have better rates than the banks. Or if you get a good credit card offer for like 1.99 fixed(the checks you get in the mail), I would go that route. As long as you can make more than the minimum payment.

Or you could just sell your car and get a dedicated NGV. lol. Good Luck.

[CNGfamily]

Re: Financing CNG Conversion?

...(the checks you get in the mail)...

Just make sure it's one of the checks that gives you the teaser rate for a long enough period of time. Many times the teaser rate is only good for 6 months.... that would be some pretty stiff payments to pay off a CNG conversion in six months!

[CraziFuzzy]

Re: Financing CNG Conversion?

There are companies that do unsecured general purpose loans for VERY good credit customers. They won't be the super cheap, but they are reasonable rates. The frist that comes to mind is www.firstagain.com

[silkman32]

Re: Financing CNG Conversion?

Yeah I was thinking I would have to do a personal but believe the interest on those is around 9%-12% or so (that's just no good). Credit is great (around 750) so I was hoping that would maybe open some doors.

[John Mitton]

Re: Financing CNG Conversion?

Is this a new vehicle? If so check with your dealer as I know Sno-motion has in the past been able to get the whole deal financed in one fell swoop (at least this was the case with GM financing on one of their deals I am familiar with).

[CraziFuzzy]

Re: Financing CNG Conversion?

the rates at firstagain are around 6-7 i believe.

[Curtis]

Re: Financing CNG Conversion?

There's also the home equity line option, although many are finding less equity than they had in the past. This makes the interest tax deductible and your payment would be somewhere around $100-$150 a month on $12k.

[silkman32]

Re: Financing CNG Conversion?

Home equity would be the best option, unfortunatly I am trying to sell my house right now too.

Thanks for all the information, oh yeah it will probably be a used truck.

[maxman]

Re: Financing CNG Conversion?

Check with a credit union.
When I bought my truck, they were willing to finance it up to about 13,500 and the book value was around 10 or eleven. (I used a different route, though, to keep the title clear.)
I you have good credit, and by the truck at a good enough price, you might be able to show them how valuable it would be converted. They may give you a break and finacnce the conversion.
Max

[silkman32]

Re: Financing CNG Conversion?

I am going to try to make it to my credit union tonight and will post whatever happens.

[ajgiorgi]

Re: Financing CNG Conversion?

Home equity would be the best option, unfortunatly I am trying to sell my house right now too.

Thanks for all the information, oh yeah it will probably be a used truck.

Can't you pull some equity out of your house before you sell it. You will get the best interest rate.

[silkman32]

Re: Financing CNG Conversion?

It would make it very difficult to sell if I did that. I have to take a pretty bad loss already for how much I have put into this house .

[silkman32]

Re: Financing CNG Conversion?

Great news, I talked to my credit union yesterday (America First) and after talking with them for about 30 minutes they called some people at the main office and found out that they can loan upto 140% of the car value to help with CNG conversions on approved credit (not sure what that number is, but I qualified). Sounds like CNG is really starting to get some notice even from credit unions to make it easier for us. For people that are really needing the tax credit this year, this is a great way to get away froom foreign oil, save a little bit more per month, and still get a large tax credit at the end of the year.

[Ben Cubbedge]

Re: Financing CNG Conversion?

If I'm not mistaken, CNG retro-fits do not qualify for the IRS tax credit. So, if you're doing this solely for the credit, its not going to be worth it, because you won't get a credit.

Here's a list of vehicles that qualify for the income tax credit:

http://www.irs.gov/businesses/articl...175456,00.html

If you're looking for a credit to offset the cost, you likely won't get one with a retrofit. You'd be better off to use the loan to purchase a dedicated vehicle, then use the credit to offset the cost of the loan.