Full timer rv financing concerns

[Dan McMartin]

Originally Posted by Mr_D

I've seen several adds for financing, all cite a higher rate for full timers over part timers.

I didn't see anything with Essex that said that. That's doesn't mean it's not true, however.

[donnandon]

Essex also wants a minimum of 10% down. We have been full time for over 8 years now. During that time we have purchased 2 new trucks and a new 5th wheel trailer. The trucks were no problem. The new 5th wheel was only a slight problem in that the dealer offered to get the financing for it, but they kept coming back needing more and more down payment. We made a few phone calls, and found one bank that we had a truck loan with previously that would finance more than we needed with only 3% down and at a cheaper rate...and yes they knew we were full time!

[imUrlaub]

It is all about risk, recourse, and collateral. If the finance organization loans money for an asset and the borrower defaults then what are the options for them? A recourse loan allows the lender to seek damages by forcing the sale of other assets including any collateral used to secure the debt. While these are common with business entities, personal loans typically do not have those provisions and in many cases State statutes prevent their use. So, the only remaining option is the coach that was used for collateral. However, if the debtor is living in the coach then they would need to be evicted in order to repossess the property used to secure the loan or in this case the coach. Alternatively, if the borrower is not living in the coach full time then it can be repossessed more easily. Remember that in some States it can take quite a while for anyone to be evicted from their purchased home. This is an expensive process that lenders will want to avoid.

[Dan McMartin]

I'm pretty sure everyone is going to have a different story based on income, debt, credit rating, etc. And terms change based on all of that. So, one person's experience financing an RV is going to be different than anothers.

And I'm not sure how type of RV figures into it. There's no argument that a $500k DP is a different animal than a $30k fifth wheel. And that goes both ways. One is a bigger risk due simply to the sheer cost. The other is a risk based on quality of construction and longevity.

[JMonroe]

Late 2010 we bought our first DP, financed through Bank of the West, as had been the gas coach we had previously. When we ordered our current coach we assumed our stellar record with Bank of the West would make securing a loan on it a non event. We were wrong.

As we no longer owned a "stick & brick", they refused to even consider a loan (credit score of 830). Owning two RV lots in very nice parks didn't count. Our dealer suggested we try Essex who had no problem financing full timers. Of course we had to pay at least a half point more interest than we would have otherwise.

My favorite part of this story? First time I called Essex I get this recording "thank you for calling Essex credit, a division of Bank of the West". Our payments are made to Bank of the West.

[dvanzee]

Originally Posted by JMonroe

Late 2010 we bought our first DP, financed through Bank of the West, as had been the gas coach we had previously. When we ordered our current coach we assumed our stellar record with Bank of the West would make securing a loan on it a non event. We were wrong.

As we no longer owned a "stick & brick", they refused to even consider a loan (credit score of 830). Owning two RV lots in very nice parks didn't count. Our dealer suggested we try Essex who had no problem financing full timers. Of course we had to pay at least a half point more interest than we would have otherwise.

My favorite part of this story? First time I called Essex I get this recording "thank you for calling Essex credit, a division of Bank of the West". Our payments are made to Bank of the West.

I can definitely relate. Priceless.

[imUrlaub]

Bank of the West acquired Essex Credit as a corporate subsidiary in 1997. Their operations were so successful they merged in 2014 with their offices now in California. It isn't too hard to understand why Essex became attractive as an acquisition target; especially since the Bank had a long history of making personal recreational type loans. As with any lending enterprise, management creates the guidelines and policies that underwriting departments must follow in determining how loans are approved. Bank of the West discovered back in the 1990's a significant segment of customers was being missed. Rather than change internal policy -- and possibly risk upsetting shareholders -- management looked for an acquisition target that could give market penetration. Essex Credit was identified and acquired.

[trx430ex]

Originally Posted by powerboatr

we purposely built a small rv port home 850Sq Ft and a covered 45 x 26 area for rv up front.
its been paid off since built and we use it as home base and it helps us get insurance a lower rate and of course low rate on the bus financing through our credit union.
it helps with the cars to.
but the lower insurance rates make sit worth while

Have given that some thought, find a 2 acre property with a trashed house, but has well, septic & electric. Tear down the house, improve the driveway build an enormous deck (to park next to) then an enormous roof above the rig & the deck. And that's it, a hard address that is mobile.

[Wundertaker]

Originally Posted by trx430ex

Have given that some thought, find a 2 acre property with a trashed house, but has well, septic & electric. Tear down the house, improve the driveway build an enormous deck (to park next to) then an enormous roof above the rig & the deck. And that's it, a hard address that is mobile.

This is exactly what I want to do in Northern Michigan (home State) near the Big Mac Bridge for residence during Summer Months. If any others have done this I'd like to hear about it.

Thanx...

[Barbaraok]

Local zoning laws may not allow it.

[imUrlaub]

Anyone have experience with current financing rates? We're seeing rates at 5% with 10% down or 4.5% with 20% down. I've seen some banks advertise a little lower but they only wanted to finance small RV loans. We're looking to finance 450k.