Financing the new RV

[Bama12]

Think we have found it. Now we have need to pay for it. I am looking at buying from a car dealer so they don't have specific RV loans. Which RV loan companies should I check with?

[rowiebowie]

My consignment seller suggested US Bank. I bought a used '2012 in the Fall of 2017 for $57,500. US Bank offered 5.5% financing for 10 years with 10% down. That beat my local Credit Union by a wide margin.

Don't know what their rates are now, but I jumped on their offer at the time.

Good luck.
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[Bama12]

Thank you! I will check. I talked with Essex Credit but got someone who didn't want to be there today so I was less than impressed. I have also heard Southeast Financial has good rates. My credit union does 1.99% but only for 8 years.

[rowiebowie]

What did you end up buying? New or used?

Take your Credit Union's deal if you can swing the monthly payments.
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[goodtogo]

Right now BoA, Bank of the West and Good Sam are quoting 5.25% for 20 years/240 months.
Steve

[Jon in AZ]

In my opinion 20 years is way too long for any RV loan. You’ll spend most of it upside down.

[rowiebowie]

Originally Posted by Jon in AZ

In my opinion 20 years is way too long for any RV loan. You’ll spend most of it upside down.

While I agree with you, pay attention Jon. Prospective buyers of your 190P may not know where to turn for financing and this thread can give you some idea where to direct them. Before I financed mine, I had not had so much as a car loan in the past 10 yrs., so I did not know what to expect. And yes, I was surprised they offered 10 yr. financing on a van that was already 5 years old.
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[goodtogo]

There is a lot of interest money on one of those loans, not much principle going out of the payment. Say you purchase a new RV at $150,000 20 % down, on a 20 year $120,000 loan at the 5.25% the payment is going to be about $960.
With the 240 month is the only way your going to get the payment range under $1,000. The 20 year makes it affordable for a lot of people. Like any large payment long term on an RV you are always going to be upside down.
Must people if not all do not buy RV's for investments. Once you drive off the lot bang, 25%.

People shopping the used market are going to be a lot better position in their purchase if the get the right one and the right price.


Steve

[DUTCH in Atlanta]

LightStream does unsecured RV loans at a reasonable price. Unsecured means that they do not hold your title, and yuou can sell or trade it without having to get a title release.

https://www.lightstream.com/rv-loan

You can easily apply on line. I did and was approved in less than an hour. Funds available immediately upon approval.

[Jon in AZ]

Originally Posted by rowiebowie

While I agree with you, pay attention Jon. Prospective buyers of your 190P may not know where to turn for financing and this thread can give you some idea where to direct them...

Shooting myself in the foot, eh?

I'd rather lose a sale than be party to what I consider predatory lending in the RV industry. There's a place for short-term financing, but 20 years... no way.

[RossWilliams]

@Jon - I don't know about 20 years. I generally agree that a loan term longer than the life expectancy of what you purchased is a bad idea. But I would certainly have considered it if my credit union had offered me a loan at 1.99% for that long. That isn't a tough mark to beat as return on an investment held for 20 years. But that's why they aren't offering a 20 year loan and the places that are are charging much higher interest rates.

In general, I have always had good luck with credit unions. If they can't make the numbers work for you then it may be it just isn't a good financial decision.

[ikanode]

Originally Posted by DUTCH in Atlanta

LightStream does unsecured RV loans at a reasonable price. ...

You can easily apply on line. I did and was approved in less than an hour. Funds available immediately upon approval.

I second the above. Their rates were as low as our credit union (at least with a high credit score) and getting the loan was faster and less of a hassle.

Our loan was only for 3 years--I don't remember how long they would have gone.

[Roadtrek Adventuous RS1]

Originally Posted by Jon in AZ

In my opinion 20 years is way too long for any RV loan. You’ll spend most of it upside down.

You're going to be upside down in 10 years anyway.
Why not have the lower payments?

Besides, you can write off the interest....

I don't know .... it's all expensive and honestly are you saving money buying used? I purchased a 5 years old model, but, I had to put money into it for essentials, new tires, batteries, it adds up fast.

[Roadtrek Adventuous RS1]

Originally Posted by goodtogo

There is a lot of interest money on one of those loans, not much principle going out of the payment. Say you purchase a new RV at $150,000 20 % down, on a 20 year $120,000 loan at the 5.25% the payment is going to be about $960.
With the 240 month is the only way your going to get the payment range under $1,000. The 20 year makes it affordable for a lot of people. Like any large payment long term on an RV you are always going to be upside down.
Must people if not all do not buy RV's for investments. Once you drive off the lot bang, 25%.

People shopping the used market are going to be a lot better position in their purchase if the get the right one and the right price.


Steve

You are absolutely right..... better to purchase the one you want....RVs are not investments.

[Roadtrek Adventuous RS1]

Originally Posted by RossWilliams

@Jon - I don't know about 20 years. I generally agree that a loan term longer than the life expectancy of what you purchased is a bad idea. But I would certainly have considered it if my credit union had offered me a loan at 1.99% for that long. That isn't a tough mark to beat as return on an investment held for 20 years. But that's why they aren't offering a 20 year loan and the places that are are charging much higher interest rates.

In general, I have always had good luck with credit unions. If they can't make the numbers work for you then it may be it just isn't a good financial decision.

If you could get a 1.99 percent rate ...my last used car was at 1.99 percent..... that would have been a very good idea for 20 years.

Unfortunately, probably not possible.

[bigfelipe]

Jebus... 10-20yrs??? That seems insane to me. I guess it's the only way to make it affordable to many folks. To me, I would go for an older model or build out before I would tie myself to that kind of debt or commitment.

YMMV...

[NFRicaS]

Originally Posted by Bama12

Think we have found it. Now we have need to pay for it. I am looking at buying from a car dealer so they don't have specific RV loans. Which RV loan companies should I check with?

You can always pay it off sooner...just saying...I make 2 or more extra payments on a credit union loan..👍🏼

[jbucking]

If you are new to RV'ing then you are MILES AHEAD by buying a good used unit within your budget, put down a decent down payment, and pay it off in 3 or 4 years. Chances are the unit will still be worth near what you paid for it and you won't be on the hook for payments for 15 or 20 years if your interests or situation (health, etc) changes. My 2007 Roadtrek 210 V is still worth what I paid for it and we have not had a single problem. (Actually owners of good used RV's report fewer problems because the bugs have already been worked out, than owners of brand new units). Don't buy new because of the warranty... you will still be miles ahead with a good used unit. Just be picky about what you buy and do your research.