LMTurner74
Member
When you went in to purchase your RV, did you walk in pre-approved (not pre-qualified) or did you depend on the manufacturer/dealer to arrange financing?. Who did you end up with and are you happy with them?
Financing
- Thread starter LMTurner74
- Start date
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Arch Hoagland
Well-known member
We arranged a loan through our credit union before we purchased.
Massmerch
Well-known member
We weren't expecting to buy when we were checking out the coaches, but, as luck would have it, we found what we wanted...so we financed through the dealer and got a great rate.
Milton R Scherotter
Active member
Pre-approved with our credit union. Have been with them over 30 years. Very simple, done over the phone!
DearMissMermaid
Well-known member
I used my "down payment" to buy a used coach, no financing, with a view towards upgrading one day.
So far I am still in the paid-for rig, having a blast! ;D
So far I am still in the paid-for rig, having a blast! ;D
Gary RV_Wizard
Site Team
I always shopped around for credit ahead of time, just like for the RV itself. The reason to to know what is available, in this case interest rates, terms, etc. so I can evaluate the deal being offered to me. I end up getting financing through the dealer, because they have always met or bettered whatever rate I challenged them with.
Pre-approval or pre-qualify can be useful, especially if you might be pushing the limits of your credit. For sure, pre-approval gives you a guaranteed loan amount, but it's possible that you can get a larger loan, or a better rate, by challenging the dealer to find other financing. Getting pre-approved doesn't mean you got the best rate or terms, so use all the shopping tools at your disposal!
Pre-approval or pre-qualify can be useful, especially if you might be pushing the limits of your credit. For sure, pre-approval gives you a guaranteed loan amount, but it's possible that you can get a larger loan, or a better rate, by challenging the dealer to find other financing. Getting pre-approved doesn't mean you got the best rate or terms, so use all the shopping tools at your disposal!
Please keep in mind that financing an item that is rapidly depreciating is an easy way to give yourself some serious financial distress.
If you aren't willing to buy something you can pay cash for, you may want to estimate the MH's depreciation compared to your loan's amortization schedule and make sure you are always right side up by a good percentage. You have to keep in mind that you may not be able to sell it for top dollar.
My 2 cents.
If you aren't willing to buy something you can pay cash for, you may want to estimate the MH's depreciation compared to your loan's amortization schedule and make sure you are always right side up by a good percentage. You have to keep in mind that you may not be able to sell it for top dollar.
My 2 cents.
blowout100
Well-known member
- Joined
- Feb 14, 2017
- Posts
- 56
Agree with above. I just took the plunge and financed. Put down $10,000 right up front. Keeping up with depreciation is the goal. So I drive off the lot and lost $10,000! So I am even? It does suck but getting a great rate is crucial. I got just over 4% and yes preapproved/qualified is the way to go. The dealer usually makes money based on the rate they give you not the rate you can qualify for!
Try and get the 30-40% off MSRP, put down 20-30%MINIMUM, and stay ahead
Try and get the 30-40% off MSRP, put down 20-30%MINIMUM, and stay ahead
MN Blue Skies
Site Team
Gary RVer Emeritus said:
^^^^^
Great advice from Gary
Gary RV_Wizard
Site Team
So does any bank, and few of them will negotiate the rate with small time borrowers and retail sales contracts. They "approve" you for a standard rate that makes them plenty of money, not the best rate available anywhere in the financial markets. Your banker is not any more on your side anymore than your RV dealer - he wants to make money off you. The dealer actually has more leverage to get a lower loan rate, as well as an additional incentive to see that you get the loan, but you have to know enough to ask for the better rate. Always challenge the dealer to beat your pre-approved rate; they are often willing to take a lower loan placement commission to make the RV sale while also increasing their total profit on the deal.
MN Blue Skies
Site Team
I just want to add that if you have several "relationships" with the bank (i.e. checking, savings, home loan, credit card, car loan, business account, other credit, automatic payment, etc.) you might get a better rate than if you only have an RV loan. So be open to setting up other accounts with the lender in order to reduce your rate.
It's sort of the same idea as your homeowner's and auto insurance. If the insurance company has both homeowners and and auto policies you are more likely to get a discount.
It's sort of the same idea as your homeowner's and auto insurance. If the insurance company has both homeowners and and auto policies you are more likely to get a discount.
Wasoki
Well-known member
I shopped the banks and credit unions before I went to the dealer. Told him to beat the best terms I had been given. He did.
