Community Forums

brandss · 12-02-2017, 09:30 PM

A salesperson at a dealer in Florida made an interesting comment about financing. I'm not sure how true it is so I thought I would ask those who have been through it.

He said that almost all banks limit financing to coaches that are 10 years or less, intimating that if we bought a used coach, once it got to ten years old, we would be hard pressed to sell it because banks wouldn't finance a buyer and the number of people that would pay cash would be extremely low. I don't have the facts on this but it seems hard to believe. I read all the time about folks buying older coaches and never read that this is a problem.

Isaac-1 · 12-02-2017, 09:52 PM

In general most banks will not finance a vehicle loan on a motorhome over 10 -12 years old. Some people have had success financing through credit unions on motorhomes that are in the 10-15 year age range, though most will only do so on shorter 3 - 5 year loans. When I bought my coach last year, I financed it on a 4 year loan through a local bank, it was 14 years old at the time (it was cheaper than taking the tax hit I would have seen if I had liquidated other assets), though I do have a substantial history with the bank.

As a result of this one does see a substantial depreciation on used coach values as the pass about 12 years of age as the pool of potential buyers drops. When I was shopping for my coach, I found asking prices on the same basic model just 2 years newer (same chassis, engine, length, similar floor plan) and considered still financible at 50-80% higher than the asking price was on mine. Of course this only applies to vehicle loans, there are other ways to secure a loan for the purchase of an RV, home equity loans, etc.

TXTiger · 12-02-2017, 11:27 PM

If you end up trading in your couch 10 years from now you don't have to worry about the new buyer finding financing that will be up to the dealer who resells it and dealers always have a way to find financing in order to make the sale. Also many financial institutions will finance older vehicles but with more money down, higher interest rate and shorter term.

Russ Potteng · 12-02-2017, 11:42 PM

Quote:

Originally Posted by TXTiger

If you end up trading in your couch 10 years from now you don't have to worry about the new buyer finding financing that will be up to the dealer who resells it and dealers always have a way to find financing in order to make the sale. Also many financial institutions will finance older vehicles but with more money down, higher interest rate and shorter term.

The point being that it still makes it more expensive and worst terms to refinance. There for another depreciation hit for a 10 to 12-year-old coachs.

joes2901 · 12-03-2017, 11:29 PM

If you have to finance a motor home purchase try to find the best rate your self. Relying on a dealer for financing gives them a chance to charge you the highest rate on the contact and sell the contract for a much lower rate and pocket the difference as a slick trick on the dumb customer. If the salesman or dealer would get 10 to 25 years in prison for such behavior buying a motor home would be much better experience for consumers.