Looking for RV Financing

[datrbone8]

nothing to say about getting a loan but good luck to you. I respect any young person with a "hippie heart" in this day and age. There are too few of you

remembering the summer of '69

Larry

[GypsyYears]

Originally Posted by cb1000rider

1) How old is the RV?
2) What's "loan" NADA value? If you don't know that, what's the lowest retail value listed? Banks generally use "loan" value for what they'll loan on one.. It's never 100% and it gets worse and worse as RVs age.
3) You know to price these things using NADA without options, right? I see dealers adding in options that were base to the model all the time.
4) 1.8k month x 12 months = $21600. You didn't mention if that's gross or net, but it's not a lot of money. An RV can EASILY eat a few months of your salary.. And I mean easily. Average household income is 50.5k in the US.. For comparison, my home doesn't cost as much (in % of my income) as what you're asking for in loan on a depreciating asset.
5) A 690 credit score isn't bad. Generally, you need over 750 for the best rates - and for "hard" to reach credit items like older RVs.

I can tell you just by looking at your income and what you want to buy, this isn't a good financial choice... Not trying to be judgmental, but there'd be no way I'd try to buy an RV that is the same % of my income...

My suggestion would be not to do it. You're not indicating if you're going to live in it or what the deal is, how old it is, etc - but at your income level I'd never buy an RV (or a boat - or anything along those lines).

If you're going to "full time" in it - consider a travel trailer. Lower cost of ownership. Less risky financially.

RVs over 10 years old - even with "perfect" credit, high income, no debt, banks don't want to loan on them. A few will, but it's right on the line.

Thanks for your post, I will be living it in full time. I am done throwing away money to rent a house, and would rather buy something of my own.

I don't have a ton of debt, right around $4000 - which is all of my loans combined and will have them paid off within the year.

The RV's low value is 34,000 and high is 39,000 - which is closer to where it is because of its low miles and the fact that its sooo clean. Since I am only asking 28,000 its well within the financing range.

[GypsyYears]

Originally Posted by datrbone8

nothing to say about getting a loan but good luck to you. I respect any young person with a "hippie heart" in this day and age. There are too few of you

remembering the summer of '69

Larry

Thank you! I really hope it all works out. I don't want to be stuck getting old without seeing at least some of the world

I wish I grew up in the 60's... You lucky duck!

Cheers

[GypsyYears]

I do understand where all of you are coming from. I am unlike most in my generation though - I have been smart with my money, know how to save - and have a good financial mindset.


Many people my age are in debt 10's of thousands of dollars - and I am lucky not to be.. Because I've been smart with my money and only have a few lines of credit open simply to BUILD credit.


I am looking to be a FULL TIMER and easily afford $400 a month in rent plus utilities every month, which will be put towards my RV and not thrown to some rental company or person. As long as I take care of the RV and pay it off in a timely manner I shouldn't have any problem.


Thank you all for your advice - but I know I am doing the right thing and even with all the negativity on here I am still going ahead with my plan.

[Sweetbriar]

Pay off ALL your debt and save up for a substantial down payment. You need to get you debt to income ratio down to nothing. If you can clear the outstanding debt your credit score should quickly move above the 725 mark or higher. Don't close the credit card accounts but stop using them and get the balance to zero. Paying extra means nothing concerning what the banks looks for. The only thing that counts is paying on time as a greed. That is what shows up on a credit report.

An RV is very much a toy or luxury item in the eyes of the bank and an older rig is considered high risk. For the bank to repo, regardless of what you perceived as their up side, an older rig is very high risk. They only way for them to get it quickly off their books would be at auction and the potential of recouping the loan amount could be limited. They all got burned pretty bad not that many years ago. My coach was a repo that a dealer purchased at auction then sold to me at 20% below NADA and it was only 5 years old. Just try an image what an older rig might bring at auction.

If your long range plans (+5 years) have you moving about a class A is OK but if not I would consider a trailer or fifth wheel. With a class A you'll be paying for the power train that will need continuous maintenance even though use might be very limited. You'll be replacing tires every seven years or so that have little if any miles. That's a quick $2000. Plus a towable, be it never towed, has a bit more livable floor space. For the cost of the mid size class A you might have in mind you could easily get a 40' fifth wheel or for even less a newer trailer just as big as the class A. Newer is better in the eyes of a bank. You'll have a one time cost to get it from a seller to where you plan to live but that cost is one time while maintenance on a class A power train is continuous even if it only moves a 1000 miles a year.

Good luck with you efforts.

[GypsyYears]

Originally Posted by Sweetbriar

Pay off ALL your debt and save up for a substantial down payment. You need to get you debt to income ratio down to nothing. If you can clear the outstanding debt your credit score should quickly move above the 725 mark or higher. Don't close the credit card accounts but stop using them and get the balance to zero. Paying extra means nothing concerning what the banks looks for. The only thing that counts is paying on time as a greed. That is what shows up on a credit report.

An RV is very much a toy or luxury item in the eyes of the bank and an older rig is considered high risk. For the bank to repo, regardless of what you perceived as their up side, an older rig is very high risk. They only way for them to get it quickly off their books would be at auction and the potential of recouping the loan amount could be limited. They all got burned pretty bad not that many years ago. My coach was a repo that a dealer purchased at auction then sold to me at 20% below NADA and it was only 5 years old. Just try an image what an older rig might bring at auction.

If your long range plans (+5 years) have you moving about a class A is OK but if not I would consider a trailer or fifth wheel. With a class A you'll be paying for the power train that will need continuous maintenance even though use might be very limited. You'll be replacing tires every seven years or so that have little if any miles. That's a quick $2000. Plus a towable, be it never towed, has a bit more livable floor space. For the cost of the mid size class A you might have in mind you could easily get a 40' fifth wheel or for even less a newer trailer just as big as the class A. Newer is better in the eyes of a bank. You'll have a one time cost to get it from a seller to where you plan to live but that cost is one time while maintenance on a class A power train is continuous even if it only moves a 1000 miles a year.

Good luck with you efforts.

I have NO outstanding debt. I have one car loan that I am going to pay off early and 2,000 in student loans that I have always been current on and ALL of this will be paid off in 6 months, if not that no more than a year from now. I have always paid on time.

The suggestion for a travel trailer or 5th wheel is great but that means I would have to get a truck - which is a whole other ordeal I don't want to deal with.

Thank you for the info on the class A. I have done and am doing lots of research - I understand they cost lots of money to up keep; and am prepared for that.

And thank you - whatever is meant to happen will.

[glarnold]

Just a few thoughts to consider:

Are you prepared for the additional costs involved in getting a class A?

Sales tax. At 6% that would be about $1680. Up front.
License and registration, about $300 to $1200, depending on state. Annual.
Insurance, about $100 a month, again, depending.
Towed, $5000 to $12000.
Towing apparatus, about $2000.
Supplemental braking system, about $2000.
Overnight parking, about $30 to $40 a night ($900 to $1200 a month).
Breakdown insurance (towing), about $100 a month.
Loan at $28K, 4%, 10 yr, about $300 a month.

Most banks want 20% down. Prepared for that?

Will you be facing cold weather?

How often will you move it?

Driving it will cost you $.40 to $.50 per mile. 5000 miles a year would add another $175 a month.

Add up the expenses. Compare to income, and ask yourself - Is it worth it to me?

Best of luck however you decide.

[bulldog2]

one more thing ,if you have any charge cards or open lines of credit (DO NOT CLOSE THEM OUT OR CANCEL THEM ) the banks and credit agencys HOLD this against you

[GypsyYears]

Originally Posted by glarnold

Just a few thoughts to consider:

Are you prepared for the additional costs involved in getting a class A?

Sales tax. At 6% that would be about $1680. Up front.
License and registration, about $300 to $1200, depending on state. Annual.
Insurance, about $100 a month, again, depending.
Towed, $5000 to $12000.
Towing apparatus, about $2000.
Supplemental braking system, about $2000.
Overnight parking, about $30 to $40 a night ($900 to $1200 a month).
Breakdown insurance (towing), about $100 a month.
Loan at $28K, 4%, 10 yr, about $300 a month.

Most banks want 20% down. Prepared for that?

Will you be facing cold weather?

How often will you move it?

Driving it will cost you $.40 to $.50 per mile. 5000 miles a year would add another $175 a month.

Add up the expenses. Compare to income, and ask yourself - Is it worth it to me?

Best of luck however you decide.

Thank you - those are all things I do need to consider. I have thought about a lot of them and I understand owning them is a major expense. I have thousands saved because of my lack of expenses.

But I do need to consider all of these things and maybe reconsider - even though this is an extremely good deal - on continuing to look and find something cheaper/smaller (a class C maybe, as I was looking at originally).

Thank you.

Originally Posted by bulldog2

one more thing ,if you have any charge cards or open lines of credit (DO NOT CLOSE THEM OUT OR CANCEL THEM ) the banks and credit agencys HOLD this against you

I would never close or cancel them, the only reason they will close is because I paid them completely off. Thank you for the advice though

[beamisl]

Tasha,


Do you already own a MH or is the 2004 Winnebago Brave you list the one you want? I have a Winnebago and I love it! Just bought it less than a month ago.


My suggestion would be this. Rent for the rest of the summer. Pay off your car (if you can) and eliminate that from your debt ratio if the credit union does not come through. Believe me, there will be more MHs available.


The best way to improve credit is to charge and pay off each month. Wherever you get gas, get a credit card from them. Charge your gas. Go home and write a check for that fill ($25, write a $25 check). Put in an envelope. When the CC comes, pay it off immediately. This revolving credit charge / pay off, raises your credit score faster than anything else. I know what I am talking about, mine is over 800.


Then try again (if they do not approve you now). Most banks do NOT understand living in a MH fulltime. Can't wrap their minds around it. They look at your rent costs and decide that will still be a cost to you and it will because you will have a CG cost. The MH will devalue but there are a lot of people doing this.


Somewhere on here is a thread about people not retired and living in their rigs and working. Search for it and they might have some ideas for you and good luck.


Lynne

[wbwood]

Originally Posted by GypsyYears

I do understand where all of you are coming from. I am unlike most in my generation though - I have been smart with my money, know how to save - and have a good financial mindset.

I'm not one to talk much about debt as I have my fair share. But I will give you the same advice as I do my 24 yr old stepson.

- First rule is that you bring in more money than you spend.
- Second rule is to live off cash if you can.
- Third rule is that if you want things, then you have to make the money to buy them.

No offense, but for having gone to school, $22,000 a year in income was a waste of you going to school. My son works for a grocery store and he makes that much if not a little more. You mention living a casual life. Great, live a casual one, but don't expect lenders to be casual with you. Go buy an old van or campervan. Convert what you need to. Hit the road and live the gyspy life. Sell the car, pay off the student loans and the VS credit card. If you have no bills, then you can easily live off hlaf of what you are making now. You can make youtube videos of your journeys, monetize and support your lifestyle. I am not saying it in a negative way. If I knew 20-25 years ago what I know now, that is what I would be doing. But i wouldn't expect at $1800 a month to be able and get a $28,000 loan on a vehicle/rv. We gross about $10k more a month than you do. We have a house note on a $180k house, a class c, and two cars. One of the cars was totaled and going to be paid off by insurance company. I went to buy another car and I was wondering if they would do the loan with the other car loan outstanding. They did and at a really good rate. But I was nervous about them doing it. It all worked out tand the other car was paid off in the next couple of days. And here we are, Making $100k more than you and we are looking at downsizing things. Smaller and cheaper RV. Smaller and cheaper home that is more self sustaining.

Once again, live off cash. Save up for stuff you want to buy. You really don't need credit if you pay for things up front. Of course if you are taking out loans and the such, then you will. But you can live life without a credit score.

By the way, you have an RV listed in your signature. What's wrong with it?

[GypsyYears]

Originally Posted by wbwood

I'm not one to talk much about debt as I have my fair share. But I will give you the same advice as I do my 24 yr old stepson.

- First rule is that you bring in more money than you spend.
- Second rule is to live off cash if you can.
- Third rule is that if you want things, then you have to make the money to buy them.

No offense, but for having gone to school, $22,000 a year in income was a waste of you going to school. My son works for a grocery store and he makes that much if not a little more. You mention living a casual life. Great, live a casual one, but don't expect lenders to be casual with you. Go buy an old van or campervan. Convert what you need to. Hit the road and live the gyspy life. Sell the car, pay off the student loans and the VS credit card. If you have no bills, then you can easily live off hlaf of what you are making now. You can make youtube videos of your journeys, monetize and support your lifestyle. I am not saying it in a negative way. If I knew 20-25 years ago what I know now, that is what I would be doing. But i wouldn't expect at $1800 a month to be able and get a $28,000 loan on a vehicle/rv. We gross about $10k more a month than you do. We have a house note on a $180k house, a class c, and two cars. One of the cars was totaled and going to be paid off by insurance company. I went to buy another car and I was wondering if they would do the loan with the other car loan outstanding. They did and at a really good rate. But I was nervous about them doing it. It all worked out tand the other car was paid off in the next couple of days. And here we are, Making $100k more than you and we are looking at downsizing things. Smaller and cheaper RV. Smaller and cheaper home that is more self sustaining.

Once again, live off cash. Save up for stuff you want to buy. You really don't need credit if you pay for things up front. Of course if you are taking out loans and the such, then you will. But you can live life without a credit score.

By the way, you have an RV listed in your signature. What's wrong with it?

I got my associates, went to a bigger university for a year and realized it wasn't the degree I wanted. So I had only a few thousand dollars in loans from that year (which are almost paid off.) I make $22,000 - on record - waitressing. Thanks for the insult though.

I do live off cash. As I have said before I did the car loan to build credit (and will have it paid off in less than a year, a year earlier than the loan term) - and other then that I have one credit card that I don't ever have more than $100 owed on it - that I pay more than the monthly premium each month. So I do live off cash - and am good with money.


I do appreciate your advice and sharing your story though. It makes me glad that I have the money sense I do... Because if I was making 10grand a month... Damn, I would be ready for retirement super early in life. I am glad you seem to be living the lifestyle you want though - in debt or not.

The RV in my sig and avatar was the RV I was trying to get - and got!

Even with all the negativity on this thread, I GOT THE LOAN at a super low APR and a monthly payment well within my range.

I will continue to save money, and pay for this awesome rig (will more than likely pay it off before the loan term, as I do everything else) and have an awesome rig with LOW miles that will last me as long as I want to travel and live in the RV.

SO EXCITED!!!!

[TGA2016]

Good for you. Enjoy life the way it suits you. A manageable debt load at today's rates shouldn't hurt. Times have changed and it's not so good. You've got the baby boomers to thank for that. So I don't think I'd listen too much at their advice.


Barry and Pat,

[GypsyYears]

Originally Posted by TGA2016

Good for you. Enjoy life the way it suits you. A manageable debt load at today's rates shouldn't hurt. Times have changed and it's not so good. You've got the baby boomers to thank for that. So I don't think I'd listen too much at their advice.


Barry and Pat,

Thank you! Everything went through and I pick up the RV on Friday cant wait.

Cheers