Financing Limitations on RV Age

[HWDean]

Hi,

I did a mock loan quote with US Bank. Although the terms of the loan were ok, they will not finance an RV more than 12 years old.

Does anyone know of lenders that will finance RV more than 12? And how old? Ideally, I'd like to take it down to 20 years

[Rockwood27]

Most loan companies, especially US Bank, won't give a loan on RVs over 10 years old. You could try a home equity loan. IMHO. taking a 20 year loan on any RV, especially one over 12 years old, is an unwise deal. The loan will be upside down the entire life of the loan. If one needs low monthly payments, how can someone pay for the upkeep and maintenance?

[booster]

Originally Posted by Rockwood27

Most loan companies, especially US Bank, won't give a loan on RVs over 10 years old. You could try a home equity loan. IMHO. taking a 20 year loan on any RV, especially one over 12 years old, is an unwise deal. The loan will be upside down the entire life of the loan. If one needs low monthly payments, how can someone pay for the upkeep and maintenance?

Yep, loans are secured for the most part so the lenders want to make sure the could recover a major part of a default by repossessing the vehicle. While class B's tend to hold value longer than other RV types, the banks don't distinguish that for them on loans and I think most other RVs can be very far down the lifespan curve by 10-12 years, so you really can't blame the banks.


It is also likely that they will be looking at ability to repay, so if you are approaching retirement they are going want good information about retirement income and how reliable it will be over the loan term.


Personally, financing into retirement would not be something I wanted to do unless I had a very reliable pension or annuity to cover it. If I had the cash or investments, I would need to buy outright or put a large down payment.

[HWDean]

Originally Posted by Rockwood27

Most loan companies, especially US Bank, won't give a loan on RVs over 10 years old.

I mentioned USBank won't do a loan over 12 yrs old

taking a 20 year loan on any RV, especially one over 12 years old, is an unwise deal. The loan will be upside down the entire life of the loan. If one needs low monthly payments, how can someone pay for the upkeep and maintenance?

Just because I take a 20yr loan doesn't mean I will be paying it for 20 years. There are scenarios where it makes sense.

I am just looking for a short-list of lenders that are willing to finance older RVs in order to reduce the number of phone-call and quotes to go thru

[wny-pat]

My bank financed my 2008 Roadtrek 210. When I say "my bank", I'm talking about my savings account and checking accounts. My adult kids think of it as bank financing too! But they are getting better.

[avanti]

You might have a better chance at a credit union.

[BasicBill]

Southeast Financial Credit Union

https://www.southeastfinancial.org/b...-vehicle-loans

[Bubba]

Hi, yes, real mature dummy here, not knowing whether the RV dealer in another state where I bought my used 210 Roadtrck, charged me the state tax or not when I paid the full agreed to price.
Gullible me, assumed this professional establishment would have at least mentioned " this little kicker?"
But, the world of today--have you noticed--is full of deceit & deception. Now, not accusing them yet, of either, but I have no recall of ANY MORE charges coming forward?

So, who is the genuine guilty party?
Thank you,
The Dummy

[booster]

Originally Posted by Bubba

Hi, yes, real mature dummy here, not knowing whether the RV dealer in another state where I bought my used 210 Roadtrck, charged me the state tax or not when I paid the full agreed to price.
Gullible me, assumed this professional establishment would have at least mentioned " this little kicker?"
But, the world of today--have you noticed--is full of deceit & deception. Now, not accusing them yet, of either, but I have no recall of ANY MORE charges coming forward?

So, who is the genuine guilty party?
Thank you,
The Dummy

All charges of all kinds should be on the invoice(s). If it is not there you probably didn't pay there which is pretty common as you would be obiligated to pay when you buy tabs in your home state.

[Bubba]

Thank you kind helper. Now, I will look for the invoice and see for myself.
Happy trails

[Dan Steger]

You might look at a home equity line of credit (HELOC) at a local hometown bank or credit union. You need to have enough equity in your home to do this, of course. It's not a loan in the usual sense, with a set duration and payment. You technically don't need to pay anything but the interest (and thus your payments are totally flexible), but whatever principal you don't pay will be deducted from the proceeds of your next home sale. I have a lot of equity and very high credit rating, so I can get 4.25% this way. Oh, and because they are essentially placing another mortgage on your home, the interest payments are tax deductible - if you itemize.

[gksmith]

I used lightstream.com for a 14 year old Leisure Travel van four years ago. Not only were their rates the lowest, they did not ask for any security. In fact they requested that no papers be filed regarding the loan. And there was no penalty for paying off early.

I disagree with not financing an older motorhome. No matter what you buy, you will be upside down for a while. The newer the motorhome, the more it will depreciate. I plan on any vehicle depreciating at least 20% of its value each year. So compare that to your payments. The depreciation loss is your true cost, even though it is not out of your pocket immediately. It will probably be more than your principal payments at the beginning of the loan, but it might be less than principal payments at the end, when the principal payments will be your true cost. So purchase with that knowledge and understanding. Just do not do anything more than you can afford down the road, especially keeping in mind probable repair costs that will go along with your other fixed costs.

[Bubba]

Thank you. I believe I already have that. Paid for the RV through that loan, and--never quote a dummy--no interest for 90 day at a rate of 3%.
Thank you

[swadia]

You are correct. Our credit union financed our's which was at 20 yo. One thing the lady had to do was put in the year the van was made ( 98 ) and customized in (99). It was kind-of-tricky also getting a tag for it. The tax dept. was a little confused as how to label it. We financed about 10,000.
Good luck.

[HWDean]

Originally Posted by BasicBill

Southeast Financial Credit Union

https://www.southeastfinancial.org/b...-vehicle-loans

Thanks, but I don't qualify to be a member

[HWDean]

Originally Posted by swadia

You are correct. Our credit union financed our's which was at 20 yo. One thing the lady had to do was put in the year the van was made (9 and customized in (99). It was kind-of-tricky also getting a tag for it. The tax dept. was a little confused as how to label it. We financed about 10,000.

Which credit union?

[swadia]

It is Legacy CU in Alabama. I see you're in Los Angeles. I guess that's not much help.

If you have a family member who is a member of one, you may quality.

[Jon in AZ]

You could check on local credit unions in LA for which you do qualify.

But I’ll have to say, 15-20 years is pretty old for a vehicle. At that age maintenance and repair start to become a significant part of your ownership cost. The worst thing is having to scrimp on actual travel because your budget is tied up in payments and repairs to the equipment, or because something breaks and you have to cancel or cut short a trip.

Prices are high right now due to the pandemic. By waiting until the current boom dies down, you may find some newer units start to creep back into your budget range. And you’ll have some time to increase your budget by saving. I’m already seeing a little softening of asking prices as we head into winter, with a few more units for sale. There’s typically a bit of a bubble every spring, but by next fall I’d expect a more “normal” market.

There is a risk in waiting. The older I get the more aware I become that health is a precarious thing and not to be taken for granted. If something is really important to you, there’s no guarantee you will be able to do it a year from now. On the other hand, financial health can be just as transient. Buying at a market peak, you can be right side up today and upside down in six months. Being upside down on a loan makes it hard to adapt quickly to unexpected life changes.

[booster]

Originally Posted by Jon in AZ

But I’ll have to say, 15-20 years is pretty old for a vehicle. At that age maintenance and repair start to become a significant part of your ownership cost. The worst thing is to have to scrimp on actual travel because your budget is tied up in payments and repairs to the equipment, or because something breaks and you have to cancel or cut short a trip.

I agree. We have always run our vehicles to near death so know the deterioration well. We are in salt country so rust often gets them first if they are taken care of mechanically. Once past 15 years and about 175K miles it is all about the conditions they have seen in the past, I think. I see it very plainly on my 96 Buick Wagon that is my summer driver. I have had it 7+ years. It is 25 years old, no rust from Texas/Utah, got very good mechanical care it appears, normal amount of bumps, bruises, sun damage, aging. Only 140K miles so solid running and driving after rebuilding front end, but nearly everything was showing it's age with dry rubber bushings, oil leaks, etc type things. Did the paint and body work finally last winter, engine, trans, axle will get refreshed, rebuilt, and improved this year which should make it reliable longer than I am. All the rubber hoses and suspension parts have already been replaced and most of the sensors will be done now.


So, 20 year vehicles can certainly be a money pit, but also can be reliable drivers for probably another 10 years depending on their condition. Either way, if you are hiring repairs done, you certainly are at higher risk of big costs on the road, though, than most newer good condition vans would be. I think it is important to make sure you have access to the funds to either get the van and you shipped home or cover the costs of a major expense like a transmission or engine failure. I think the trans failures would be most common higher cost one in 20ish year old vans, unless they have already be replaced.



If you can find a 20 year old van that has not seen salt and has been stored inside, you can probably be about 7-10 years ahead of the aging issues if the mileage is lower (up to 120K maybe) as long as the maintenance has been good. Some rubber deterioration and oil leaks would probably still be there, though. Our 2007 Chevy 190P Roadtrek fits that description so I have been able to watch how it is aging and so far it is doing very well. The only time it has sat outside was the 15 months on the dealer lot before we bought it.

[HWDean]

Originally Posted by swadia

It is Legacy CU in Alabama. I see you're in Los Angeles. I guess that's not much help.

If you have a family member who is a member of one, you may quality.

Thanks. I checked the membership qualifications and sadly I don't qualify