Laura & Charles
Well-known member
Park National Bank gave us good terms, but it depends a lot on how old the unit being financed is… probably true of most lenders.
RV Loan Lenders, Recommended and Not Recommended
- Thread starter rhugga
- Start date
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If you have answers, please help by responding to the unanswered posts.
Adventurous Traveler
Well-known member
From my experience getting loans for RVs privately from lenders with a reasonable interest rate is almost impossible. Tack on in that difficulty a 20 loan, well good luck.
In my opinion too is that anyone that needs a 20 year loan to be able to afford an RV monthly payment wise probably shouldn't be buying one in the first place. Financial disaster waiting to happen.
In my opinion too is that anyone that needs a 20 year loan to be able to afford an RV monthly payment wise probably shouldn't be buying one in the first place. Financial disaster waiting to happen.
Most won't touch anything over 20 years old. Some cut it off at 15.
Reasonable is relative. In the 80's 30 year mortgages were @ 14%.
Laura & Charles
Well-known member
True. Park offered us 25 years on first coach, five years old. They offered 15 years on our second, eight years old.
Credit score comes into play, too; but I believe that mostly impacts interest rate.
You’re entitled to your opinion, of course. Our story:
We both have excellent credit scores (800+), financed both coaches for 15 years and had them both paid off in well under 3 years. We got what we wanted without dipping too deeply into our savings, and we didn’t experience “financial disaster”.
FICO determines both interest rate and term. Lenders offset risk by demanding a higher return on principle in a shorter term.
That principle is what's insane about politicians agitating for the removal of the stipulation in student loans that bankruptcy protection is not afforded. Who with walking around sense would otherwise loan an eighteen year old kid, with no credit history, no work history and no collateral, $100,000?
Gary RV_Wizard
Site Team
Then you obviously didn't "need" a long term loan to buy the RV - it was just a financial tool for you. We did much the same with 3 of our RVs. The disaster part comes only if you have a long term loan on a depreciating asset and lack the financial resources to get out from under it if need be.
Laura & Charles
Well-known member
That’s very true, @Gary RV_Wizard. But we have no idea how financially responsible the poster who resurrected this thread yesterday is (actually, their sister is who the were asking for). And I would think any financial advisor would advise against a long term loan on a depreciating asset. But there sure would be fewer RVs on the road if loans weren’t available (maybe not a bad thing?)
I just don’t want to discourage someone from getting into the RV world and I expect them to be aware of their resources.
I just don’t want to discourage someone from getting into the RV world and I expect them to be aware of their resources.
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Kirk
Well-known member
Getting back to the subject that you brought up, I strongly suggest that your sister shop loans before she buys the RV as it is very unlikely that she will find a lender who will go out 20 years on a used RV. The age and book value of the RV she wants to buy is also a very important part of the loan issue as is her credit rating. If the RV is less than 10 years old and is one that has a high book value as compared to the sale price, then she may be able to find something but I'd be very surprised if she finds anything beyond 10 years. Some places that do finance RVs: Alliant Credit Union Bank of the West
darsben
Well-known member
Is your sister going to live in it full time instead of a stick and brick? That opens up a whole new set of problems
Adventurous Traveler
Well-known member
My point on "financial disaster" was getting a 20 year loan on a RV, new or worse used, and expecting to pay on it for 20 years. Getting a long term loan and then paying it off in short order is a whole different story.
In the 80's and early 90's there was a huge boom in boating. Dealers and Mfgs were were offering loans like you see today. My brother had a 15 yr loan on his boat. He was lucky he got a friend to take over the payments but not before my brother had to pay him $3K upfront, and for one year he paid his friend a couple hundred dollars every month. It worked out for both of them, but this is an exception to trying to get out of a long term loan. Oh, by the way, my brother retired at 52 worth millions.
In the 80's and early 90's there was a huge boom in boating. Dealers and Mfgs were were offering loans like you see today. My brother had a 15 yr loan on his boat. He was lucky he got a friend to take over the payments but not before my brother had to pay him $3K upfront, and for one year he paid his friend a couple hundred dollars every month. It worked out for both of them, but this is an exception to trying to get out of a long term loan. Oh, by the way, my brother retired at 52 worth millions.
