Average interest rate for RV

[cjscott]

What kind of bank interest rates are average for an RV? We have good credit, just wondering what is the going rate right now, if some have gotten particularly good rates, etc. What banks may be worth looking into. Live in Northeast. Hopefully this is allowed here. ;o} Also, what insurance companies may give the best rates.

[Davydd]

I haven't financed an RV since 2006 so interest rates would be meaningless (if I could remember what it was). At the time the dealer offered their own financing but I had a better deal through a credit union. My credit union financing for an RV was the same as buying a new car. Credit unions historically for me offered the best financing other than a period when dealers were offering 0% financing. I belonged to two credit unions so could pick and choose between them. One was not always better than the other and I shopped with what the dealer offered and what my bank offered every time before making a decision. Credit unions won every time except once for a 0% loan on a pickup truck. The problem for many is a credit union is generally somewhat exclusive to qualify to join, and the more narrow it is exclusively, the better the deals you can get from what I can tell.

I don't know anything about insurance companies other than to know you can borrow against the cash value of your life insurance. You can also borrow against your retirement savings like 401(k)s but I don't think much of either as a good deal especially retirement savings since you are paying interest for you own money while losing its investment value. I'm assuming both might be lower interest because the lending risk is low since it is your own money lost if you default. If you do either I think it would be for a need not a want. An RV is a want, BTW unless you plan to full time live in it sans home ownership or rental.

[obgraham]

It's not the same as financing, but I paid for mine mostly via a home equity line of credit. 3.5%, and the interest is deductible, so it's more like 2.4% effectively.

Reason? -- living off my IRA, I don't keep any significant amount of cash outside the IRA, and it allows me the ability to work the purchase into my tax planning the best way possible. I expect it'll be mostly paid up by the end of 2015.

However, if I had to use longer term financing, I'd still be considering a HELOC.

[gerrym51]

some times a dealer makes an extra profit if they generate a loan.sometimes you can get a better deal if you take the loan from them. i would check out all options

[mlts22]

All varies on your credit record. Have 20% down and a credit rating in the 700s or higher is my advice if you are going the financing route.

[cjscott]

I'll check my credit union, but I think they don't do RV loans. Best rates I'm getting now (dealer also) is 3.9 and that's with excellent credit. I was just wondering if I should try harder and look into more on my own.

[gerrym51]

Originally Posted by cjscott

I'll check my credit union, but I think they don't do RV loans. Best rates I'm getting now (dealer also) is 3.9 and that's with excellent credit. I was just wondering if I should try harder and look into more on my own.

i can only offer opinion.3.9 percent for rv loan is a steal. i'd take it.

[Davydd]

Obgraham got 3.5% from basically his own money in putting equity in play. Hard to imagine you could beat that if that is current. I did pull out my last credit union junk mail from the recycle bin. They are offering 3.5% new car loans.

[gerrym51]

as Davydd says if your using home equity you might get lower rate for for a straight out rv loan were you only have the down payment as skin in the game i still think 3.9 is a great rate. millions of cars are sold-not millions of rv's- i don't think you can directly compare car loans to rv loans. just an opinion

[Sailordive]

This time last year through Bank of the West. 20 year, 10% down on $100K loan at 4% with a very high credit score and a low debt to income ratio. There are too many variables but they beat everyone else that I talked to about the loan. Many wanted higher rate, shorter term and more down. I could have done all of the above but preferred the flexibility of the loan I received. Remember with a home equity loan if things go bad they don't take your RV they take your house.

[obgraham]

Remember with a home equity loan if things go bad they don't take your RV they take your house.

Well, if they take my house, at least I've still got the RV! Win-Win!

[gerrym51]

Originally Posted by obgraham

Well, if they take my house, at least I've still got the RV! Win-Win!

wouldnt't that be lose-win-lol-

[stanw909]

We haven't had a rv loan in ten years but the interest was tax deductible as a second home.

[stanw909]

Good point about losing house. You could still " live in a van down by the river " as the late Chris Farley used to say on SNL.

[obgraham]

Originally Posted by stanw909

You could still " live in a van down by the river " as the late Chris Farley used to say on SNL.

Nowadays that would be rotating among the nearby WalMarts.

[gerrym51]

Originally Posted by obgraham

Nowadays that would be rotating among the nearby WalMarts.

sounds like a lose-win-lose situation

[Johnny R]

Originally Posted by gerrym51

some times a dealer makes an extra profit if they generate a loan.sometimes you can get a better deal if you take the loan from them. i would check out all options

This is true, and it probably gives you negotiating strength if you finance thru the dealer. Ask for it. But dealer rates are higher than the Home Equity Line of Credit. So for sure pay out the dealer financing in full in a month or so, using your HECL if needed.