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Old 09-02-2012, 03:04 PM   #1
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Initial Financing

Well, after reading everyone's very helpful thoughts, opinions, and advice.....we are looking into trading our 2010 Cameo 5th and 2010 Ram 3500 for a class A. Initially what we've run into is no one wants to loan me money. Reason....I don't owe enough people. No comparables. I operate mostly on cash. We have taken out auto loans, loan for the 5er and trucks but paid them off relatively quickly. House was built in 1993 and paid for in 1998, so no mortgage for some time. Have great credit score but again...no comparables.

Anyone else run into a similar issue?
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Old 09-02-2012, 03:20 PM   #2
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Quote:
Originally Posted by NoFear View Post
Well, after reading everyone's very helpful thoughts, opinions, and advice.....we are looking into trading our 2010 Cameo 5th and 2010 Ram 3500 for a class A. Initially what we've run into is no one wants to loan me money. Reason....I don't owe enough people. No comparables. I operate mostly on cash. We have taken out auto loans, loan for the 5er and trucks but paid them off relatively quickly. House was built in 1993 and paid for in 1998, so no mortgage for some time. Have great credit score but again...no comparables.

Anyone else run into a similar issue?
Nope...have a pretty good credit score 'cuz we have a mortgage on the house and RV (tax deductions on the interest paid), and credit cards to use their money for a month and get cash back

SO - THE REASON for the reply...a year ago, we sold our (very nice) Denali TT to acquire our new-to-us Motorhome, so we went to several dealers to talk about trade-in and consignment deals.

At one large dealer, suprisingly we met the general managing partner...he was very frank and told us that we were cheating ourselves if we did a trade-in or consignment sale.

He said his business (right then) on TT's and 5th Wheel was 60% cash buyers. And the RV market was re-bounding with towables being the HOT TICKET, so he suggested that we try a private sale first.

We are in a medium metropolitan area - kinda' near a major city, so there is a large population to advertise to.

Long story short...in just over a month, we sold the TT to a family that intended to full-time for $2000 more than we had expected at consignment and MUCH more than trade-in value.

Good luck!
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Old 09-02-2012, 03:48 PM   #3
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Your only option may be to get a credit line on your house, although that may mess up your longer-term plans.
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Old 09-02-2012, 04:02 PM   #4
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Quote:
Originally Posted by NoFear
Well, after reading everyone's very helpful thoughts, opinions, and advice.....we are looking into trading our 2010 Cameo 5th and 2010 Ram 3500 for a class A. Initially what we've run into is no one wants to loan me money. Reason....I don't owe enough people. No comparables. I operate mostly on cash. We have taken out auto loans, loan for the 5er and trucks but paid them off relatively quickly. House was built in 1993 and paid for in 1998, so no mortgage for some time. Have great credit score but again...no comparables.

Anyone else run into a similar issue?
The key to obtaining financing is basically this.
A. Credit score above 720, and easier if it is more than 760
B. Debt to income (including the new purchase) isn't greater than 45%, better if it is closer to 40%
C. Stable income sources....long term employment
D. Liquid reserves...lenders want to know you can make payments if you have a temporary cash shortfall
E. No late payment history, BK, or charge offs
F. Better if you have had an RV loan previously...shows reliability
G. Loan to value is solid. Lenders want to see if you have enough skin in the game. Upwards of 20-30% cash down
H. Some lenders want to see no larger payment of 12-15% of your gross monthly income...most don't

I hope this is helpful. We just financed 100k, and there are plenty of lenders willing to go 15-20 yrs on 10 yr or newer rv. Interest rates are good, 4.5-5.5% fixed for life of the loan. There are a lot of lenders advertising low rates, but once again they are very picky. I can't hardly blame them considering the repo's. If a borrower gets into financial trouble, the RV is probably the first thing to go. Good Luck
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Old 09-02-2012, 04:03 PM   #5
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Quote:
Originally Posted by Scarab0088

Nope...have a pretty good credit score 'cuz we have a mortgage on the house and RV (tax deductions on the interest paid), and credit cards to use their money for a month and get cash back

SO - THE REASON for the reply...a year ago, we sold our (very nice) Denali TT to acquire our new-to-us Motorhome, so we went to several dealers to talk about trade-in and consignment deals.

At one large dealer, suprisingly we met the general managing partner...he was very frank and told us that we were cheating ourselves if we did a trade-in or consignment sale.

He said his business (right then) on TT's and 5th Wheel was 60% cash buyers. And the RV market was re-bounding with towables being the HOT TICKET, so he suggested that we try a private sale first.

We are in a medium metropolitan area - kinda' near a major city, so there is a large population to advertise to.

Long story short...in just over a month, we sold the TT to a family that intended to full-time for $2000 more than we had expected at consignment and MUCH more than trade-in value.

Good luck!
Scarab008...how did you advertise the for sale?
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Old 09-02-2012, 05:12 PM   #6
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Originally Posted by NoFear View Post
Scarab008...how did you advertise the for sale?
We did ads on every on-line RV ad site that we could find (and that were free)...but the buyer actually found us on Craigslist

You gotta think like a buyer...where would you look?

The trick with Craigslist: Keeping the ad near the top...pull the ad and re-post everu 3-5 days

And for any on-line ad...HAVE GOOD PICTURES!!! (4 on Craigslist and most of the other site are free and the ad can offer more pictures by e-mail). For our pictures, we even did the model home "staging" thing - like the mfgt's...the Mrs. actually enjoyed doing this part - with flowers, plates pretty napkins on the dinette, bed made, fresh towels in the bath, and all the cabinettes/bins empty and clean!

Best of luck!
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Old 09-02-2012, 05:18 PM   #7
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It really stinks that the system "penalizes" folks who are such good risks.

Why fight it? Why not just use your paid for stick house as collateral? I would think you could even get better terms.

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Old 09-02-2012, 08:41 PM   #8
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we had bank of the west deny use for every rv loan we ever applied for (3)

all off which we paid off early

go figure

we always got better rates else ware anyway
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Old 09-10-2012, 07:12 AM   #9
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Well...latest update... Because I don't owe anything and because my house has been paid for for 14 years, no one wants to give me an RV loan. :-(. The dealers suggested I buy something less costly (which we don't care for) and keep for a year to "show" them I can be trusted with that kind of money/loan. Go figure. It's all such a racket. Guess we'll just have to pay cash if we want to do this. We were going to pay it off early anyway.
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Old 09-10-2012, 08:20 AM   #10
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Loans

Not sure why you are having problems. Camping World provided the name of a lender and 2 weeks later loan was approved with 20% down, great rate and term.
If your credit score is above 760 keep looking. Try some of the big boat/rv lenders Sterling, Scott etc.
My loan came from a small bank.
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Old 09-10-2012, 08:46 AM   #11
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Originally Posted by flbluerunner
Not sure why you are having problems. Camping World provided the name of a lender and 2 weeks later loan was approved with 20% down, great rate and term.
If your credit score is above 760 keep looking. Try some of the big boat/rv lenders Sterling, Scott etc.
My loan came from a small bank.
It is around 762/764 they told me but all are saying..."no comparables". :-(
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Old 09-10-2012, 01:31 PM   #12
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Why not get a mortgage on your home? Once you have paid for several months, you will then have "comparables" to refi or pay it off early as you already planned to do.
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Old 09-10-2012, 01:37 PM   #13
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We got a loan on purchase for 5.5% with 10% down. We then took advantage of our home and refinanced it at 2.875%, 10 years. That gives me a title free RV and clear, almost free money with plenty of equity on the home to sell it too.
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Old 09-10-2012, 05:06 PM   #14
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Quote:
Originally Posted by NoFear View Post
Well...latest update... Because I don't owe anything and because my house has been paid for for 14 years, no one wants to give me an RV loan. :-(. The dealers suggested I buy something less costly (which we don't care for) and keep for a year to "show" them I can be trusted with that kind of money/loan. Go figure. It's all such a racket. Guess we'll just have to pay cash if we want to do this. We were going to pay it off early anyway.
Not a good idea to buy a lower cost RV then trade it a year later on what you really want because you'll take a hit in depreciation, even if the lower cost RV is used.

Take out a home equity loan using your paid-for house as collateral and use the money to buy the RV.
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