|
|
06-18-2014, 02:30 PM
|
#1
|
Junior Member
Join Date: May 2014
Posts: 10
|
RV Loans today
Hi,
I'm looking for an RV. I'm learning alot about them while I'm looking. I guess I don't get it when it comes to financing. I have pre-qualified for a loan amount that is through a credit union many of the dealers in this state use. Also, happens to be the same credit union my automobile is financed through. I thought that would be a plus but everything comes up minus when it comes to getting what I consider a decent interest rate. Am I out there in La-La Land when it comes to this subject? The dealerships advertise as low as 3.9% and I realize I would qualify if I had what the industry calls "excellent" credit rating. Well, my credit rating is only "good" so I'm getting quotes with rates closer to 7%. I also realize that the more money I contribute as down payment, the better I will get. Bottom line is the best rate so far is 6.9%. That same credit union told me auto loans are now offered at around 2.9%. My auto loan is 3.9%. My research has included reading that RV loans are usually in par with auto loan rates. If I can get 3.9% auto loan rate 2 years ago, why can't I get closer to that for RV loan finance rate today ? The credit union said their RV Loan rates are not going to be less than 5.9% to anyone! What's up? I asked them, "as an industry expert, can you tell me what the National Average is for finance rates for RV loans?". They told me they don't know. They only know their rates. Is it better to keep trying other lending institutions until I find a more favorable rate or am I wasting my time? I am interested in knowing the game and how it works when you factor in dealer financing vs direct loan financing (what if I want to buy from a private seller?) I realize these are tough questions because each individual's personal credit history is different and that dictates loan rates. But I have learned that some institutions will use different reasons to justify the offered rate and loan amount. My personal credit history? Not impeccable but good. (divorced twice and taking good care of my financial health on my own). Well, any ideas, thoughts, education on financing an RV are welcomed to this newbie. Thanks!
|
|
|
|
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!
|
06-18-2014, 02:56 PM
|
#2
|
Senior Member
Join Date: Oct 2011
Posts: 1,136
|
Try Good Sams. Or better yet try Camping World
|
|
|
06-18-2014, 02:59 PM
|
#3
|
Senior Member
Join Date: Aug 2008
Location: Georgia
Posts: 8,638
|
The amount borrowed and years financed has a lot to so with it also.
__________________
2007 Fleetwood Revolution LE 40V
|
|
|
06-18-2014, 03:16 PM
|
#4
|
Senior Member
Join Date: Feb 2011
Location: Snowbird - Waterford Mi and Citrus Springs Fl.
Posts: 3,609
|
The only way you're going to learn/know for sure is to keep beating the bushes. When you get tired of doing that, YOU'LL be the expert on YOUR finances. Not a bad place to be....
__________________
1997 37' HR Endeavor, 275hp Cat, Freightliner
03 CR-V Blue Ox, Ready Brake
|
|
|
06-18-2014, 03:21 PM
|
#5
|
Senior Member
Join Date: Apr 2008
Location: On the Road
Posts: 1,223
|
Try Essex Credit/ Bank of the West, they do a lot of RV loans
__________________
Dan & Arlene
2005 Monaco Dynasty Diamond IV
Chasing the good weather
|
|
|
06-18-2014, 03:29 PM
|
#6
|
Junior Member
Thor Owners Club LA Gulf Coast Campers
Join Date: Oct 2012
Location: Greenwell Springs, LA
Posts: 2
|
Try Redstone Credit Union
__________________
Diane & Kenny Brunecke
& the terriers 1 rat and 2 jacks
|
|
|
06-18-2014, 03:29 PM
|
#7
|
Senior Member
Join Date: Dec 2013
Posts: 471
|
Your credit score has alot, & I mean alot, to do with the rate you will get. You really want to look at everything you owe. Also, you can once a year have a reevaluation of your credit score from your financial institution. And there is a real good chance your credit score dropped when you bought that vehicle two years ago because that made you owe more money.
|
|
|
06-18-2014, 03:44 PM
|
#8
|
Senior Member
Newmar Owners Club
Join Date: Dec 2008
Location: Spokane, Washington
Posts: 1,167
|
The best finance rate is via a home equity loan, but I will assume that will not be an option for you.
__________________
Ron... WB7DJV
2000 38' Dutch Star | 2006 Grand Cherokee | SilverLeaf VmsPc Engine Monitor | TST TPMS
FMCA, NKK
|
|
|
06-18-2014, 04:53 PM
|
#9
|
Senior Member
Join Date: Sep 2006
Location: Fulltime/ SE Minnesota
Posts: 3,120
|
We got a home equity loan at 4% and are paying it off fast.
__________________
08 Foretravel Nimbus 40 ft tag axle / 1000 watts of solar
2019 Ram 1500 Big Horn Hemi 4x4
|
|
|
06-18-2014, 05:31 PM
|
#10
|
Junior Member
Join Date: Jun 2014
Posts: 28
|
Depending upon the state where you live, if you are a Costco member, you can save on your rate through Costco/Essex Credit online. You need to have a credit score of 690 or above, I believe, and put 10% down. Rates for borrowing 25k to something like 50k are 3.99, 4.19, 4.39, 4.59, etc., depending on term. "Closing cost" is $275 for Costco members as compared with $459 for non-Costco members through Essex Credit. Costco members also receive a $100 cash card for securing the loan through them. I just applied yesterday and was approved today. It was easy.
|
|
|
06-18-2014, 06:30 PM
|
#11
|
Senior Member
Join Date: Dec 2012
Location: Full Timing
Posts: 751
|
Check the fine print on those dealer advertised rates. The low rates are often for loans with only 5 year terms. In my experience, credit unions are the way to go.
__________________
Mike
2003 Alpine Coach 40MDTS - 400HP Cummins ISL
Can Am Spyder Roadster
|
|
|
06-18-2014, 07:17 PM
|
#12
|
Senior Member
Join Date: May 2014
Location: Huntsville, AL/Helen, GA
Posts: 1,566
|
I'm an ex-finance company guy--working for a major auto manufacturer's captive finance company.
Variances in auto financing rates vs. recreational financing is that people pay for their automobiles first. Boats and recreational vehicles come second.
Repossession ratios on boats/RV's far exceed that of autos, and the losses experienced on boat/RV repossessions are high. In other words, the banks/finance companies/credit unions price boat/RV financing high because of their past experience with that kind of financing.
I belong to a rather conservative credit union. With a high FICO score, 60 month auto financing is 2.35%. My Bennington is financed on 3.99% rate--best rate for their lowest risk customer. I have check all over town, and other credit unions are 4.5-5% APR. That's the best there is.
|
|
|
06-18-2014, 07:24 PM
|
#13
|
Senior Member
Fleetwood Owners Club
Join Date: Jan 2013
Location: Milton, NY
Posts: 923
|
I'm a banker for over 30 years. You can shop and find the best rate out there, but in the end it's your score that will determine your rate. It's called risk based pricing. The higher the risk, the higher the rate and visa versa. Lower credit score=higher risk. Not sure what you consider "good" and not asking you to tell me... But if you want that 2.9% advertised rate today you better have a 700 Fico score or higher...
__________________
Steve & Beth - Milton, New York
2009 Monaco Diplomat 41 SKQ
2016 Ram 1500 Quad Cab 4x4
|
|
|
06-19-2014, 09:34 AM
|
#14
|
Junior Member
Join Date: May 2014
Posts: 10
|
Quote:
Originally Posted by StevieG
Not sure what you consider "good" and not asking you to tell me... But if you want that 2.9% advertised rate today you better have a 700 Fico score or higher...
|
Credit Score is 689, 698, 699 ...so close to 700! But not close enough! Debt to income..just my auto loan. I pay off any debt early. Paid off over 17K in student loans in the past 4 years. Paid off a 2K dental loan before a year was finished. I don't know...I feel maybe it has to do with no partner, hence no co-signer...and female - middle aged ... are those things factored in? Yes, I guess I have developed a bit of a chip on my shoulder and those reasons are probably not relevant. I really can afford the price range I have looked in 40 to 50K yet can't get approved for that. I can also and have offered to finance 10 yrs or less and put down more than 10% but no cigar, no rate improvement and just darned disappointing. I'll keep looking just the same and hope for the best. I'm in no rush so I won't settle until I get a reasonable rate. Thanks for the insight.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Discussions |
|
|
|
|
|
|
|
|
|
|
|
|
|