Go Back   iRV2 Forums > iRV2.com COMMUNITY FORUMS > iRV2.com General Discussion
Click Here to Login
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Reply
  This discussion is proudly sponsored by:
Please support our sponsors and let them know you heard about their products on iRV2
 
Thread Tools Search this Thread Display Modes
 
Old 01-05-2014, 01:20 AM   #1
Junior Member
 
Liberate's Avatar
 
Join Date: Dec 2013
Posts: 9
Financing an RV after bankruptcy

My bankruptcy was discharged almost 4 years ago and my wife and I have worked hard to restore our credit to just over 700. We have little debt now, own a home (mortgage at $70K) and I have a stable job at $110K per year.

Now we want to finance a new rv and our credit union is quoting us 9.75% for a $82,500 rv loan on a new unit that is costing us $95K with an MSRP of $122K. And, we work hard to negotiate this price.

It seems to me that, even with a 4 year old bankruptcy history, we should be able to get a better deal. Yet I hate to be applying all over the place, as the more you apply and get credit checks the more you run the risk that this will drive your score down, which I cannot afford to happen, as I do not want my score to suddenly drop below 700. 700 seems to be a threshold with a lot of banks.

Is it hopeless to get a better rate? Any suggestions from the forum would be greatly appreciated. Thanks!
__________________

__________________
Liberate is offline   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free!

iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!

Old 01-05-2014, 02:13 AM   #2
laj
Senior Member
 
Join Date: Nov 2010
Posts: 1,241
I'm surprised they would touch you at all. I would figure it's the price of BR, take it and in 3-4 yrs. try to refinance at a better rate. what does it do if you put more down? jmho
__________________

__________________
laj is offline   Reply With Quote
Old 01-05-2014, 02:50 AM   #3
Senior Member
 
Join Date: Mar 2013
Location: Langley. BC, Canada
Posts: 677
Maybe forget the credit union and apply at a mainstream bank. If the credit unions are anything like they are in Canada, they are very anal, very conservative, extremely inflexible, and just not up to what a regular bank can do. Give TD bank a try for example. They are Canadian owned and we have banked there for quite a while and I think you have them everywhere now. Best bank I've ever had. I tried a CU once, and never again. Idiots...

Don't use the RV as collateral. That's going to be higher even if you have good credit. Banks don't "like" financing RVs because of the risk. They depreciate fast and they could have trouble finding you if they had to to repossess. Use your own home for collateral and you will get the best rates. It may make some nervous, but at the end of the day, interest is interest. Why pay more in the long run? DW is an accountant and that's what she would recommend.

If you haven't been, you can do things like getting a credit card or two somewhere and paying it off on time regularly so you prove you are good. Places like Home Depot for example will give you a small limit to start and they'll increase it as time goes by. Make sure there's no errors on your credit report. Happens all the time. If you do have some credit with some companies, not all report it and apparently with some, you can ask them to report your credit. Maybe you've done these though. Repairing a damaged credit history takes time and work and there are some things you can do. Probably different in the US, but I'm sure some things are the same. I went through a divorce 12+ years ago and ended up with a battered credit report. Took years and a lot of work to recover and you wouldn't be able tell now. Might be that you just have to tough it out for a while yet and wait for the RV you want. Maybe just get something else new or used for a lot less in the meantime? Don't forget that if you pay $82.5K for a new unit, in the first year or two, the value will plummet from depreciation and if you did happen to want to sell it for any reason (trading up or down, or just getting out), you'll lose a ton of money. It's quite common for RV-ers to resell within the first few years and move to something different. If this is your first RV, maybe you want to rethink strategy a bit? We're about to get our third RV in 3 years yet swore up and down the first one was it forever...
__________________
Gil & Deb & Dougal the Springer Spaniel
2014 KZ Spree 262RKS & Ford F250 supercab V10 4x4 LB
Langley, B.C.
myredracer is offline   Reply With Quote
Old 01-05-2014, 07:49 AM   #4
Senior Member
 
Kro1957's Avatar
 
Thor Owners Club
Join Date: Jun 2012
Location: Mitchell South Dakota
Posts: 1,142
Blog Entries: 2
When we purchased our RV this past year and sat down with the finance manager at the dealership. One of the first things he asked us to determine our credit or where he would send our loan through was: "Have you ever had a bankruptcy?". We said no and then he proceeded with the application. So I am not sure if they ask everyone this in order to qualify for the dealerships lenders or what. With a score of 700 that is really good. However note that various credit bureaus use slightly different score. We have used creditkarma.com for a couple years now. Heard about if from Dave Ramsey. It is free and gives you instant information on everything in your credit. Very good tool! A report card that breaks down several aspects of your credit to see a lot of information and trends. Might be worth your while to take some time and see what's the scoop.
In regard to applying with various lenders, you are correct, you do not want multiple hard inquires on your credit. The nice thing also with creditkarma is it will also show you how many inquiries are on your report. Months it happened, who ran it and so on.
I hope this helps you and things will work out. Jim
__________________
06 King of the Road 37RLQS
06 Coachman Cross Country 5.9L 300HP 382 DS
03 Jeep Wrangler, 4.0L James, Trina, SMSgt, USAF Ret
Kro1957 is offline   Reply With Quote
Old 01-05-2014, 07:51 AM   #5
Senior Member
 
Country Coach Owners Club
Retired Fire Service RVer's
Join Date: Feb 2013
Location: Ocala, Florida
Posts: 6,295
I would check with Good Sam Club (their financing is through Essex Credit). They specialize in RV financing and may be able to help.
__________________
FMCA #F431170, GS #822128658, Escapees SKP #112655
2012 Airstream Mercedes Interstate Class B
[SIGPIC][/SIGPIC]
Medico is offline   Reply With Quote
Old 01-05-2014, 08:02 AM   #6
Senior Member
 
DSL417's Avatar


 
Entegra Owners Club
Join Date: Sep 2012
Posts: 6,209
Blog Entries: 2
I don't think the fact that there was a bankruptcy goes away in four years in a credit report. Thought it was seven, maybe more. The 700 number surprises me as well...not questioning your post, but the credit scoring is also something where they have one number for you to try to get you to pay for their monthly"monitoring service", and another for banks and credit unions. First thing is to ask the CU that "offers" you 9.75% for the precise credit score that the interest rate was based.

Next, if you're offering 10% down, the loan at a low interest rate is not as appealing, as you are buying an asset that depreciates 20-30% when you drive it off the lot. Banks and CUs know you'll be upside down immediately. If you offer 30% down, you may get a better rate.
__________________
Dave and Beth
2015 Cornerstone 45J
Ford F-150 and 2016 Polaris Razor
DSL417 is offline   Reply With Quote
Old 01-05-2014, 08:34 AM   #7
Senior Member
 
Kro1957's Avatar
 
Thor Owners Club
Join Date: Jun 2012
Location: Mitchell South Dakota
Posts: 1,142
Blog Entries: 2
Dave/Beth make a good point. Price you had negotiated may appear to be higher than what the CU sees in value. Ever wonder why dealerships want to sell you GAP insurance? It's because the minute you drive off the lot your rig is suddenly worth less.
Even thought GAP insurance usually is not that expensive. Notice how you can get a lower interest rate suddenly it you take GAP? I have had family and friends experience this on new vehicle loans. I would guess the same applies on RV's not positive. I would think a down payment would make quite a difference.
__________________
06 King of the Road 37RLQS
06 Coachman Cross Country 5.9L 300HP 382 DS
03 Jeep Wrangler, 4.0L James, Trina, SMSgt, USAF Ret
Kro1957 is offline   Reply With Quote
Old 01-05-2014, 08:36 AM   #8
Senior Member
 
vsheetz's Avatar


 
Fleetwood Owners Club
Ford Super Duty Owner
Join Date: Jun 2012
Location: SoCal
Posts: 11,799
Need to try differing lenders. Those that specialize in RV contracts. My credit union, for example, is very high on RV rates. By thus they are saying they don't want to write this type of business.
__________________
Vince and Susan
2011 Tiffin Phaeton 40QTH (Cummins ISC/Freightliner)
Flat towing a modified 2005 Jeep (Rubicon Wrangler)
Previously a 2002 Fleetwood Pace Arrow 37A and a 1995 Safari Trek 2830.
vsheetz is offline   Reply With Quote
Old 01-05-2014, 08:46 AM   #9
Senior Member
 
Monaco Owners Club
Join Date: Feb 2011
Location: Signal Hill, California
Posts: 3,296
I agree with Medico. deSanford Costco recommends them also and gives you a $100.00 gift card when you go through them.
__________________
Sanford, Linda & R cats: Molly, Levi, Cody
2011 Monaco by Navistar RV
Good Sam Life Member Good Sam Hams Chapter
deSanford is offline   Reply With Quote
Old 01-05-2014, 09:40 AM   #10
Senior Member
 
Kro1957's Avatar
 
Thor Owners Club
Join Date: Jun 2012
Location: Mitchell South Dakota
Posts: 1,142
Blog Entries: 2
Good to know Costco does financing. DW looked just now, they have teamed up with another lender Essex. Just do a google search Costco RV financing and it will give you the information. Other lenders who specialize in RV's like Good Sam might be an option for you as well. Didn't the dealership have suggestion for you? Or at least offer to help you with this? After all, it is there self interest to make the sale and the Finance Manager should be the pro in getting it put together.
__________________
06 King of the Road 37RLQS
06 Coachman Cross Country 5.9L 300HP 382 DS
03 Jeep Wrangler, 4.0L James, Trina, SMSgt, USAF Ret
Kro1957 is offline   Reply With Quote
Old 01-05-2014, 09:57 AM   #11
Senior Member
 
palehorse89's Avatar


 
Newmar Owners Club
Join Date: Oct 2009
Posts: 7,743
Red light.....

Quote:
Originally Posted by Liberate View Post
My bankruptcy was discharged almost 4 years ago and my wife and I have worked hard to restore our credit to just over 700. We have little debt now, own a home (mortgage at $70K) and I have a stable job at $110K per year.

Now we want to finance a new rv and our credit union is quoting us 9.75% for a $82,500 rv loan on a new unit that is costing us $95K with an MSRP of $122K. And, we work hard to negotiate this price.

It seems to me that, even with a 4 year old bankruptcy history, we should be able to get a better deal. Yet I hate to be applying all over the place, as the more you apply and get credit checks the more you run the risk that this will drive your score down, which I cannot afford to happen, as I do not want my score to suddenly drop below 700. 700 seems to be a threshold with a lot of banks.

Is it hopeless to get a better rate? Any suggestions from the forum would be greatly appreciated. Thanks!
To start, you will have a red light on your head for some time to come in your life when dealing with financial institutions. After the market collapse in 08' they all were hung with bankruptcy, defaulting on payments, foreclosure's, and on and on ........ today, they are starting to loosen their reins again.........4 years ago is not a very long time frame based on your life events........as you know now, what happened to you, is the very last thing in this world, under no circumstances do you ever what to have bad credit.......if not buying with CASH.......... you are going to pay through your nose if borrowing money......Like others posted, I am surprised that you can even get a loan today, and that interest rate does not seem bad considering....... The only thing that is going to correct your financial situation and credit score is time.......a long time. Using a credit card and paying it in full is a good way to help your score along with other on time payments that you have. Good luck.....
__________________
2000 Newmar MADP 4060, 350ISC, Spartan MM, IFS 2011 Jeep JK, M&G Braking, 2014 MTI 27' Hog Hauler, Wireless brake control, 2006Ultra & 1989 Springer
palehorse89 is offline   Reply With Quote
Old 01-05-2014, 10:01 AM   #12
Moderator Emeritus
 
TXiceman's Avatar


 
Vintage RV Owners Club
Texas Boomers Club
Oklahoma Boomers Club
Ford Super Duty Owner
Join Date: Aug 2000
Location: Full Time, TX Home Base
Posts: 17,150
Blog Entries: 21
First shop other finance sources. Next, The deal you have may not be all that good.

On a $122K RV, I would suspect you should be closer to $91500 or maybe as low as $86K.

I think you left a bit on monel laying on the table.

Also, with all of the bad debt banks were hit with, they are being more cautious.

Ken
__________________
Amateur Radio Operator (KE5DFR)|Full-Time! - 2012 6.7L Ford Crew Cab Dually -2013 HitchHiker Champagne 38RLRSB - Travel with one Standard Schnauzer and one small Timneh African Gray Parrot
TXiceman is offline   Reply With Quote
Old 01-05-2014, 10:26 AM   #13
Senior Member
 
Bfmorgan's Avatar
 
Monaco Owners Club
Join Date: Mar 2013
Location: Northern United States
Posts: 270
We have financed our various motorhomes through both banks and credit unions. Last time we had to join a new credit union. Our credit union wanted 7.5% and max 84 months. The new credit union offered up to 240 months at rates below 5%.

Banks and Credit Unions are always looking at their portfolios and trying to adjust them for maximum profit/minimum risk. Three years ago our dealership was writing about 90% of their loans through Bank A. All of a sudden Bank A's rates went up and it was hard to qualify for loans. Not a problem, Bank B decided financing RVs was a good business and the dealership started writing loans with Bank B.

Talk with the finance manager at the dealership. He will know what current rates are from various lenders and should be able to suggest the best deal for you. He will be motivated to get you financing and should have a lot of experience with the best lenders for your circumstances.
__________________
Brad & Bonnie
2007 Monaco Dynasty 42 Diamond
Bfmorgan is offline   Reply With Quote
Old 01-05-2014, 11:34 AM   #14
Senior Member
 
DGShaffer's Avatar
 
Thor Owners Club
Nor'easters Club
Mid Atlantic Campers
Ford Super Duty Owner
Join Date: Jan 2010
Posts: 2,097
You're welcome. I'll be happy to shoulder your debt for you.

I've have customers actually call me to announce that they were filing but as soon as they restructure (on my dime) they will look foreword to doing business with me again in the future
__________________

__________________
DGShaffer is offline   Reply With Quote
Reply



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Financing gitarwmn iRV2.com General Discussion 12 06-18-2013 07:13 PM

» Virginia Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 04:06 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.