Financing - RV-Dreams Community Forum

princess tonya · RV-Dreams Family Member

Financing

Mallo · RV-Dreams Family Member

Financing;

The term will depend on a number of factors.

When we bought as the credit crunch was starting but not at it's worst I can only give you the picture that existed in Feb of 2008.

If the amount of the loan was under 20,000 I could only get a 5 year note.

If the amount of the load was over 20,000 but under 40,000 I could get a 10 year note.

Over 40,000 but under 75,000 I could get a 15 year note.

Over 75,000 I could get a 20 year note.

I think the longest term that I could find was for over 150,000 and 25 years.

Those numbers varied bank to bank. Some banks said up to 50K was 10 years over 50K was 15 years some would do 15 years over 25K.

It depended on Credit rating, the MSRP of the RV, and a number of other issues.

Oddly the amount of down payment did not matter. That is less true today.

At that time they were looking solely at the ratio of the out the door price to the MSRP once the discount was low enough the "requirement" to put in any of my own money went away. We put in a down payment to lower our monthly payment.

The key is going to be to shop it.

I put out 10 or 12 online credit apps then once the answers started coming in I could compare rates, fees, and terms better.

Mallo

RVWest · RV-Dreams Community Member

Try contacting Essex credit for options, they specialize in RV & Marine loans. www.essexcredit.com I cut this from their site..

Today's RV Rates*

3 Year Fixed: 6.50%***

20 Year Fixed: 6.87%**

*Annual Percentage Rate
**Variable Rate Loan
***Loans $100,000 & greater
with a 2 Year Pre-payment Penalty
Your Interest Rate may vary

For more information call:
1 866 377 3948

DISCLAIMER

APPLY ONLINE >>

RATE QUOTE >>

princess tonya · RV-Dreams Family Member

Thanks so much. That gives us a little better idea at what we are looking at.

thebearII · RV-Dreams Family Member

If I were an RV salesman, I would push the fact that RV's can be financed for 15 years plus. A lot of folks aren't aware the term can be long, they think it's like a car 5-6 years.

So if a buyer is willing to make payments they would be able to buy a lot of RV for relatively small payments over the next 15 to 25 years.

Xeries · RV-Dreams Community Member

Stick with your original plan and forget about financing. The whole point of full timing is the freedom, why would you become slave to the lender? It's counter intuitive; not to mention, just not smart. Find a way to do it without financing. It can be done.

tumwatergal · RV-Dreams Family Member

Try Thor Credit Corp. in Orange County, CA. We got a loan with them in 2007 and the interest rate is under 3%. Didn't make sense to us to pull money out of I.R.A. to pay cash with such a low interest rate available. I have no idea what the rate is now, but may be worth a look.

I know, everyone says "don't finance", but sometimes you have to. And if you can afford to finance and don't mind doing so, it is your business after all.

Happytrails · RV-Dreams Family Member

Financing is a little different and rates are around 6.75 in today's economy. Based on price and year of model, you can go out to 20 years if you choose to finance. If you finance and are planning to pay it off within a year or less, ask the finance company to put you with a loan bank that does not have a prepayment penalty. There are some out there as that is what we did. We financed for about 1 month and when our house sold, we paid tha loan off without a penalty.
The best way if possible is to fulltime without a loan on the rv, if at all possible.

phyllen · RV-Dreams Family Member

We, too, financed our new Montana. Once the house sale is completed, we will pay it off. The dealer originally processed paperwork and we got 15 yr at 7:50%.

However, just this week we got a 6.25% through our local bank provided payment is deducted automatically from our account. I always pay more than the loan. I will send extra funds each month directly to the bank. There is no prepayment or pay off fee.

As we have Roth IRA's we will draw down enough each month to make the payment. These IRA's are tax free now unlike most of our other investments that were purchased with tax deferred funds.

Coyatee · RV-Dreams Family Member

Try USAA (Insurance Co. for military and dependents now open to all ranks) as their bank offers RV loans to 120 months at 6.39%. I have delt with them for 58 years and can't say enough about them.

LaDon/A&L · RV-Dreams Community Member

Thanks so much for the information. We are preparing to purchase a Newmar next year, so we will be contacting USAA. Can't wait to become fulltimers.