How much $ down on purchase

[Mr_D]

When we ordered our DSDP we put $5,000 down, then when it came in we wrote another check for $28,000.

[Downsizer]

Mr_D
what does that really mean??? Was that in 2002 as new, recently as used and what would that percentage be for whenever you bought it??

[TXiceman]

An RV is a depreciating asset. You buy one for the enjoyment of the RV. You have to look at the per trip cost of enjoyment unless you are a full timer.

Ken

[Mr_D]

Originally Posted by Downsizer

Mr_D
what does that really mean??? Was that in 2002 as new, recently as used and what would that percentage be for whenever you bought it??

New, factory order, list price of 211,700.

[B Bob]

Wow, Good Sam, Essex, and so on advertizing 4.3% or there abouts for RV financing. That is very cheap. We had to pay quite a bit more than that 23 months ago and we have excellent credit, a mostly paid house, and lots of investments. I am just about ready to pay it off with cash so I don't have any payments and don't pay the interest.

I have to say though that if you personally think inflation is going to kick up that being a debtor is good. At this time I do not see imminent inflation.

[bigdomino]

Originally Posted by Downsizer

We used Excel. They were extremely good with competitive rates! Best of all, they would respond quickly to every question & everything happened just as they said!
As with all lenders, do not sell house first!!!! Fulltimers are a no-no! Sell house the day after RV settlement!

Not true about full timers and house. Essex credit does finance full timers now. I recently refinanced my my and got 4.8% interest rate for 17 years.

Steve

[frankdamp]

WE ran into that down-payment issue when we were looking last year. We had quite a bit of equity in the S&B and so tapped into that. We covered the purchase price, a new set of tires and the sales tax hit with no need for a down payment.

[WeatherTodd]

all those claiming NADA value means nothing... listen up.

Banks use the NADA value to determine a book value for financing. Some banks may physically inspect the coach to verify...depends on your credit.
Personally I think a down payment is a "suckers bet" and a way for dealers to get liquid cash out of a leveraged deal. If you have the credit to buy a motorhome... the banks will certainly approve 100% financing. Some may even let you roll registration and sales tax into the loan (dont do this)

If you apply for a loan via a dealer... then this is where the magical down payment appears. Plus the dealer gets a residual kickback.

[bigdomino]

It does not make sense to buy a motor home and not put a down payment on a loan for it. These rigs lose so value that when you go to trade it in, you are certainly going to be up side down. You will need to pay off the difference when the loan is paid off.

I put 25% down on my coach a number of years ago and I am still not under water.

Steve

[Bruce C]

If your going used, look for a good deal way below book value[ perhaps bank repos]. The bank wants their money. Go to your credit union and you'll get the loan with out a down payment if the credit is fine. You won't be upside down on the loan for many years if bought right. Good luck.

[WeatherTodd]

Originally Posted by bigdomino

It does not make sense to buy a motor home and not put a down payment on a loan for it. These rigs lose so value that when you go to trade it in, you are certainly going to be up side down. You will need to pay off the difference when the loan is paid off.

I put 25% down on my coach a number of years ago and I am still not under water.

Steve

Steve... your motorhome depreciates whether you pay cash for it or finance it. No sense putting skin in a game (i.e. Downpayment) because you will never ever ever see that money again. You wont see MSRP for the coach either... but by your logic youre throwing the baby out with the bathwater.
Also you are thinking like a "retail mark". The fact you put 25% down just made it easier for the dealer/seller to close the loan. If your bank uses MSRP to establish values and typical discounts are 15-30% off that... all you did was get mugged in the closing room.

[WeatherTodd]

Originally Posted by Bruce C

If your going used, look for a good deal way below book value[ perhaps bank repos]. The bank wants their money. Go to your credit union and you'll get the loan with out a down payment if the credit is fine. You won't be upside down on the loan for many years if bought right. Good luck.

Exactly Bruce.

[RickO]

Originally Posted by WeatherTodd

Steve... your motorhome depreciates whether you pay cash for it or finance it. No sense putting skin in a game (i.e. Downpayment) because you will never ever ever see that money again. You wont see MSRP for the coach either....

Agreed. The entire issue of finance or pay cash and down payment or no down payment really ends up with a lot of people on both sides of the issue... although it would appear that our forum has more in favor of not taking on debt at all.

IMO, the contention surfaces because some try to state the "one true answer" for everyone and every situation rather than just outlining what they did and why. To some, being under water on their coach is a horrible thing... we did it by design. Making a large down payment so I won't have to write a check at trade in time is the same as withholding more taxes than I need to every week just so I get a refund at the end of the year. I see little difference in writing the check for a large down payment or writing it at the time I trade/sell the coach. To me it's just a balance sheet and cash flow issue and if I can avoid putting cash in to depreciating assets I'll do it.

JM2C

Rick

[smack2020]

Are banks loaning these days without a down payment?

I was at a couple different dealers a month ago and they all said in this economy the banks are requiring 10-20 percent down, even with good credit.