Many questions confront those with disabilities who consider purchasing a van. Will the person with the disability be a driver or a passenger? Should a ramp or a lift be used to gain entry? Can the wheelchair user transfer to a built-in seat or will he need to remain in the wheelchair? What kind of special driving controls will be needed? Will the floor need to be lowered to provide enough headroom for the wheelchair and its user?

Purchasing a converted van may become more feasible if adaptations can be rolled into the financing package and payments extended for as long as 10 years. Other options include leasing, rebates and tax deductions.

But one question is possibly more daunting than all the others combined. With a price tag for a van plus customization ranging from $20,000 to $50,000, how on earth can you expect to pay for it all, especially if you're on a fixed income?

For many affected by physical disabilities, financing is the key that will allow them to obtain the mode of transport to provide that crucial measure of freedom and independence, the ability to go where you want, when you want.

Traditional financing means taking out a loan to cover the price of the vehicle and, hopefully, the modifications, too, and agreeing to pay the loan back with interest in increments over a period of time. The length of time and the rate of interest are terms agreed to by the purchaser, the vendor and the lender. The lender is usually a bank or other financial institution.

Until fairly recently, financing packages for most customized vans extended only a few years, with the short financing period translating to high monthly payments. "A typical period, if you went to a local bank or credit union, would be five years," says Jim Probst, vice president of Freedom Motors. "When you're financing $35,000 to $45,000, that's a pretty high payment."

The extra freedom and mobility provided by the van were in danger of being outweighed by the monthly financial burden.

LONG-TERM FINANCING

Fortunately, that seems to be changing. Lori Hinderer of Tucson, Ariz., is an MDA national vice president who has muscular dystrophy and uses a motorized wheelchair and a ventilator. She purchased a Ford minivan in April 1998. Through her Ford dealer and the Ford Mobility Motoring Program, she was able to acquire the vehicle with 100 percent financing -- that is, with no down payment -- and with monthly payments extended over a 10-year period. The price of the van plus $15,000 in adaptations were all rolled into the monthly payment.

The 10-year loan for customized vans is a fairly new phenomenon, and suggests a greater awareness in the industry of the importance of making it easier for people with disabilities to acquire transportation.

"Payments on a standard ramp conversion for 10 years are about $450, compared to $700 or $800 if they were to finance it for five years," says Rachael Ferson of Independent Mobility Systems. "People can't afford to spend $700 to $800 a month for their transportation."

Much, if not all, of the cost of the conversion can be rolled into the financing package, along with the cost of the vehicle. "Most of the conversion options will be financed. The only real question would be about adaptive driving equipment that is real specific to the individual," Ferson says.

The financial institution will want to look at your credit history and evaluate your financial stability before approving the loan. Ferson says you don't have to be brimming with money to get approved -- if you were, you wouldn't need the loan in the first place -- but you have to look as if you can meet the payments every month. Past credit problems could prevent you from qualifying for a 10-year loan or 100 percent financing, and could add percentage points to the interest rate on your loan. Also, the smaller the amount you're financing, the less likely that the bank will approve a long-term loan.

One drawback to long-term financing is that you'll almost certainly end up paying more interest. Before you sign off, your dealer is obliged to show you the total cost of the vehicle, which is the sticker price plus total interest. Monthly payments can be modified up or down, but total cost remains the most reliable guide to what you'll actually end up paying for the vehicle.

LEASING AND BUYING USED

Leasing is an alternative way of financing a vehicle; it's really a fancy way of saying that you agree to rent the vehicle for a specified period. When you lease, you don't end up owning the vehicle at the end of the financing period, unless you exercise the purchasing option that's outlined in the agreement.

Leasing allows you to pay lower monthly payments and gives you the option of trying a new vehicle more often. It may be a desirable option if you only expect to be able to use the van for a few years. Unfortunately, leasing isn't yet available to converted van purchasers in all states.

Buying a used vehicle instead of a new one -- and preferably one that still has low mileage -- is an idea that can reduce your monthly payments considerably. Probst says that Freedom attends auctions of leased vehicles to snap up vans that are a year or two old but that have low mileage. "We keep those in stock with conversions on them, so if somebody needed to have a lower payment or a lower cost vehicle, we have relatively new vehicles with low miles that may be more affordable."

If you're a homeowner, another financing option for paying for the vehicle is by taking out a second mortgage on your home. This may entitle you to a lower rate than you'd typically get on an auto loan and the interest you pay is tax deductible.

REBATES AND OTHER PROGRAMS

Some of the major manufacturers offer special rebate programs that provide funds to be applied toward vehicle modifications. Hinderer received $1,000 back from the Ford Mobility Program on her converted Ford van, which she was able to use to reduce her monthly payments.

Other manufacturers, such as General Motors and Chrysler, offer similar rebates on the conversion, and may also offer rebates on the vehicle itself. Training in the use of adapted equipment may also be provided. Conversion companies may have their own special offers and rebates.

Costs of adaptive equipment may be deductible on your taxes under medical expenses. You may deduct only the amount of total medical expenses that exceeds 7.5 percent of your adjusted gross income. Consult a tax expert to make sure you avail yourself of any tax benefits you're eligible for, or contact the Federal Tax Information and Forms number listed under Internal Revenue Service in your phone book.

In addition, in most states, a doctor's prescription can be used to exempt you from having to pay sales tax on your adaptive equipment. Check to see if your health insurance or workman's compensation provides any support for a van purchase and conversion.

Government programs may offer assistance, including some training and financial aid. Check with your state's Department of Vocational Rehabilitation and the Division of Developmental Services. Veterans should inquire at the nearest Department of Veterans Affairs or write to Department of Veterans Affairs, Washington, DC 20420.

"A lot of people that I talk with are on a limited or fixed income and they simply don't think they can afford it," Probst says of potential van purchasers. "When, in truth, you could be looking at a brand new vehicle with a conversion with 10-year financing working out to payments of about $350 a month. Not too bad for a 1999 vehicle with a $15,000 conversion."

For more about adapted vans, see "Lifts -- Keys to Independent Living" (Quest vol. 5, no. 1) and "Adapted Vehicles: Paving the Road to Independence" (vol. 4, no. 1). 

RESOURCES FOR CONVERTED VAN PURCHASERS