RV loans and interest rates

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Groundhog

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Jul 18, 2006
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We are in the process of buying a new 2006 Sunseeker Class C MH. We agreed to an interest rate of 6.75% (we were approved at the same rate at another dealer). The dealer called us last night and said he could only get us approved at 7%.  After checking on the net, and finding out that the dealer can add up to 25% to the bank rate, I'm feeling like he's trying to pull a fast one. The thing is, even at 7%, it's still a better rate then we have found on our own.

I'm stuck at what to do. Even at 7%, it's a good deal. The camper is the model and floor plan, and has everything in it, even the interior color, that we want. Plus it's at the best price we can find.

I would hate to turn the deal down over 1/4%, but I would also hate feeling like I was taken advantage of.
 

BigDad

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Jul 18, 2006
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Paw Paw WV
Every dealership in the world gets a back end profit on the banking, it's part of life.? The dealer gets a buy rate from the bank and he adjusts.? You are not getting anything different from anyone else who gets the financing from a dealer.? I wouldn't worry about the .25, it's okay.?

The only defense you have in this situation is sign the deal and get your own re-financing within 30 days and the profits gets yanked from the dealer. That's what I call playing dirty!!!? But I don't think you have that option cause you stated you can't beat the dealer rate at 7%.

Now if you like the TT and the deal is good enjoy youself and go for it,
 

Groundhog

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I knew going in they were making money on the backend of the loan, but we both agreed to the 6.75. For the dealer to change it after the fact is pretty dirty to me.


"The only defense you have in this situation is sign the deal and get your own re-financing within 30 days and the profits gets yanked from the dealer"

I did not know the bank took back the profit.
 

MonacoMoe

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Jul 15, 2006
Posts
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I work for a dealer in AZ and the way that this dealership handles financing is this.  We take your FICO score and shop it with your purchase order and give you the best rate that we are offered.  I have had clients get a better rate from a CU or a long time bank that they have a business dealings with etc.... but in all cases these better rates were accompanied by a 5-7 year term (auto type term not an RV type term) which made the monthly payments about double so they wound up going with the dealership.  I have seen adds in trailer life mag and FMCA for financing with a non major financial institute and have talked with clients that were very satisfied with the rate and term.  Does anyone out there have any experience with these lender types? 
 

Gary RV_Wizard

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At our Silver Springs FL home
There are lots of reputable sources for Rv financing on the internet - don't be afarid to shop there.  It doesn't take long to fill out an online application and you generally hear back in 24-48 hours.  If you go with them, they will handle the details with the dealer.  Try

Beacon Credit
Essex Credit
RV Credit Direct (broker)
Financial Network Inc

If you are an Good Sam member, use their service - I have and it works. Ditto if you are an FMCA member. They do not do the financing themselves, but have an arrangement with a major finance company.


You still may not beat the dealer's 7% rate - the real cheap rates go to the biggest loans, eg. $200K or more.  And of course to those with the top creit ratings.  You might also increase your chances for a lower rate by increasing your downpament - sometime the percentage of your equity in the deal makes a difference. 

Chances are if you can get a better quote, the dealer will offer to meet it.    If one finance outfit will grant a lower rate, usually others will match it.
 

BigJohn

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Feb 8, 2006
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221
Location
St Charles, MO
I just purchased a new DP. I went on the internet googled "rv loan" and found several rates better than the dealer rate. About 6 wks ago I got 6.25 for 20 yr. This was a painless transaction the loan Co Fedx'd me the paperwork and I fedx'd back. Application was online and again pretty painless. Now if those payments could be painless!! Good luck.
 

Groundhog

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Jul 18, 2006
Posts
30
I did check the internet Essex could only do a 7.25. i aslo called ervloans, rv quick loans, and one more. But they were no better then the dealer. I'll try some of the others post in the last reply.
 

Groundhog

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Jul 18, 2006
Posts
30
Ok, called the ones in the last post, but they are still higher.

Thanks for the help.
 

Groundhog

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Jul 18, 2006
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Called the dealer back and told them we had to think about what we wanted to do. 30 minutes later he called us and said we were good to go at 6.75%.  ::)
 

scottydl

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Groundhog said:
Called the dealer back and told them we had to think about what we wanted to do. 30 minutes later he called us and said we were good to go at 6.75%.  ::)

Good move Groundhog.  ;)  Play their own game with them, and you usually end up winning.  Trick is, if you're going to threaten to walk away then you have to be willing to do it.  Luckily it didn't come to that for you!  ;D
 

Betty Brewer

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Mar 10, 2005
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Groundhog said:
Called the dealer back and told them we had to think about what we wanted to do. 30 minutes later he called us and said we were good to go at 6.75%.? ?::)

Groundhog,
I love stories with happy endings.  Thank you for sharing!

Betty
 

Groundhog

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Jul 18, 2006
Posts
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Thanks Betty.  ;D

Scott, we were ready to walk away. There are plenty of other units out there for sale.  ;)
 

BigDad

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Jul 18, 2006
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12
Location
Paw Paw WV
Sorry I missed that point.  I would have walked on that also.  I am glad it all worked out for you.


Groundhog said:
I knew going in they were making money on the backend of the loan, but we both agreed to the 6.75. For the dealer to change it after the fact is pretty dirty to me.
 

scottydl

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This thread reminds me of another question I had been wondering about... does anyone here fully own their RV, or is everyone making payments?  I would hate to pay for something all winter that I'm not using.  :p  I guess if you're a fulltimer and you can go South in the winter then you get your money's worth, but for the vacationer/recreational camper like me it just doesn't seem practical to take out a loan... I'd rather save up the cash.  Not to mention the incredible depreciation that most newer MH values seem to have... you'd always owe more than what the unit is worth.
 

Ned

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Feb 1, 2005
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USA
The decision to finance or pay cash is always a personal accounting decision.  If you can make more investing the funds than you'll pay in interest, then financing may be the better choice.  There is no one easy answer to this question, each individuals situation, financially and tax wise, is different.  When we bought our 1997 Endeavor for fulltiming, we decided to pay for it in full rather than finance.  Today we might do just the opposite.
 

Shayne

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Jan 22, 2006
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4,324
Wow I've been following this thread for a bit and boy was I mistaken.? Appearently, I thought very few of the RVs weren't paid for.? I couldn't see me financing, but I guess I'm wrong.? But then I don't believe in financing anything.We've paid cash for all our belongings.? The RV, The house, both Lincolns, The trailer, both park models, the land, the golf carts, and all the rest of our belongings.? But then that's just me.? Good luck to those of you that believe the other way.
 

Carl L

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Mar 14, 2005
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west Los Angeles
scottydl said:
This thread reminds me of another question I had been wondering about... does anyone here fully own their RV, or is everyone making payments??

Me! Me.? ?;D ;D? Just got my pink slip in May! ;D? ? I am now the proud and sole owner of a 10 year old trailer.? That is ok, I like the little gizmo and am used to its faults.? And I did get 10 years of mortgage interest deductions on my taxes.? ?Yes, indeed, Uncle Sam will let you deduct interest on lien secured loan on an RV as a 'second home'.? ?Ad valorum taxes are deductable too.

Regards,

Carl L/LA
 

scottydl

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Carl Lundquist said:
Yes, indeed, Uncle Sam will let you deduct interest on lien secured loan on an RV as a 'second home'.

I'm glad you mentioned that, I read about that too.  Was it a substantial deduction each year (amounting to a significant tax credit)?
 

Carl L

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The loans are typically fully amortized.  The interest portion of the payment, especially on a ten year note is very high, decreasing with the passage of time.  The world is full of amortization tables and loan schedule calculators -- Quicken has such.  The credit is going to depend on the size of the loan and your tax situation.  Buy Monaco and you have a biggy, buy a Casitas and it will be a bit less.

And that's all I am going to say about that.  8)
 

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