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Old 06-16-2021, 09:45 AM   #1
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Cash or credit?

I'm posting this question here because you all have likely bought and sold expensive rigs.

My good friend is considering selling his 8 year old Airstream 27' TT. He says that lenders won't finance a 10 year old unit, hence he should sell it before it hits 10 years old. That rig is pristine (and gorgeous) and should fetch about $80k in today's market.

How difficult is it to sell a relatively high dollar rig for cash?

He's also thinking of quitting RVing because its become too popular and the spontaneity is gone with the steady disappearance of first come first served campgrounds and rv parks. Its also possible he's just feeling old and tired but won't admit it. Nevertheless, I'm trying to talk him out of it.

What's your experience in listing and selling your last class A yourself?
Or conversely, buying your current class A from a private party?
Cash or credit?
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Old 06-16-2021, 10:42 AM   #2
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I bought on credit because I got a reasonably low rate of about 5% and my annuity is paying 22% over the last 6 years. Why would I want to lose 17%?
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Old 06-16-2021, 11:23 AM   #3
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Originally Posted by Whangler View Post
How difficult is it to sell a relatively high dollar rig for cash?

What's your experience in listing and selling your last class A yourself?
Or conversely, buying your current class A from a private party?
Cash or credit?
If the rig is worth $80,000 it will be very unlikely that he will find a cash buyer. Since you have told us nothing more than that it is an Airstream I have no way to guess if that is a reasonable price. It is possible someone who has their own financing would come along.

I have sold a class A for cash, but don't understand what that specifically has to do with selling a travel trailer? Since a class A is a motorhome it is a little different but it is still an RV. The one I sold was 14 years old and had a much lower price. I have not purchased a class A from a private party but have purchased several travel trailers from private parties. Two of those were for cash, the other I financed with my bank.
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Old 06-16-2021, 11:33 AM   #4
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I don't know about lenders' policies regarding a 10-year limit, however, there are many buyers, myself included, who finance their RV purchase via a home equity loan.

On the other hand, if he's thinking about selling it, it's likely he's not using it, so selling now would probably be a good idea, particularly with demand and selling prices as high as they are now.

Too many of us hang onto a depreciating asset like an RV or boat (like I did) far too long, so I, personally wouldn't try talking him out of it. $80,000 is a lot to have tied up in something he's not using much. If he sells it and later decides to get back into RVing, he can buy something decent for a lot less money.
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Old 06-16-2021, 05:11 PM   #5
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The reason I posted here, is that buying / selling an Airstream is a different kettle of fish than other brands of TTs. Price wise, it's more similar to used class A's than any other brand of TT. Surely, there are plenty of 10+ y/o class A's out there changing hands for =/> $80k.
My friend still uses his airstream, he's just thinking of driving a relatively fuel efficient suv and staying in Airbnb's on his road trips. There are definitely advantages to selling now given this market.
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Old 06-16-2021, 05:25 PM   #6
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Sorry,

I am not trying to be argumentative or obtuse her but I don't really understand your question re:selling with financing or cash?

As a seller I would not expect your friend to be the one financing the sale, so obviously the onus is on the purchaser to come up with the funds. How they do that is entirely up to them. As long as they show up with a Bank Draft made out for the agreed sum, who cares how they financed it?

I understand his concern about a bank being reluctant to place a lien on a ten year old unit, but again, that is the buyer's worries, not his.

Am I missing something here?
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Old 06-16-2021, 05:31 PM   #7
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Originally Posted by Whangler View Post
How difficult is it to sell a relatively high dollar rig for cash?
I'd differentiate here between high-dollar trailers and high-dollar Class A's. Different target markets. I've seen high-net-worth people drop a $100k down payment on a huge high-end Class A without sweat, but I don't think that even a very nice Airstream trailer attracts that same crowd. The likely buyer of a 10-year-used TT wouldn't be in that same HNW class. I'd say his plan of selling before hitting the ten-year mark is sound.

And I'd especially say it right now, in this seller's market.
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Old 06-16-2021, 05:37 PM   #8
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Originally Posted by Mr_D View Post
I bought on credit because I got a reasonably low rate of about 5% and my annuity is paying 22% over the last 6 years. Why would I want to lose 17%?
The heck with the trailer , where did I get an annuity paying 22 percent
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Old 06-16-2021, 07:17 PM   #9
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I think what the OP is saying is something I have heard as well, getting financing for a rig over 10 years old is very hard to do. There are certainly ways to get a loan such as your credit union, home equity, but, in general, on a rig over 10 years old, they type of financing is much harder to get.

Not sure if it's true, but I have read it and heard it from various dealers.
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Old 06-16-2021, 08:17 PM   #10
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I don't understand how your argument about hnw individuals applies to financing vs paying cash. In a lender's view, what's the difference between a 10 y/o class a worth $80k and a 10 y/o airstream TT worth $80k?
I just wanted to know how people pay for a 10+ y/o class A selling for ~$80k. Are you saying those buyers are wealthier than the Airstream buyer? Besides Airstream, what 10 y/o pull behind TT will fetch a price remotely close to an Airstream?
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Old 06-16-2021, 08:32 PM   #11
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The person who desires a $80K Airstream will understand they need to finance or pay cash. Neither of those issues is the sellers problem.
The same applies to a Class A buyer. It is the buyers challenge and rsponsibilty to come up with the funds not the sellers.
Unless the seller is somehow providing financing as an incentive to buy (which happens on occasion). The seller need not worry or care how the buyer obtains their funds.
Price it fairly and it will sell, this basic ideal applies to cheap items as well as big ticket items. The funding part of the sale will take care of itself.
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Old 06-16-2021, 08:35 PM   #12
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The heck with the trailer , where did I get an annuity paying 22 percent
Bernie Madoff!

I pay cash for things because I do not have an annuity. Everything that I have paid cash since for has lowered my monthly cost of living to less than social security.

When I pay cash I offer less that what the seller is asking. Is the seller's choice to accept or wait for a better offer. In three cases, I got outbid.

Also had a pension that was growing at 4%/yr until I started taking it. There were several different options. I took cash and invested it. My conservative investment did 14% in a year and aggressive did 38%.

The things I paid cash for I have enjoyed and even a market crash can not take that away. When I stop enjoying those things, it is time to sell.
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Old 06-16-2021, 09:12 PM   #13
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Originally Posted by Lantley View Post
The person who desires a $80K Airstream will understand they need to finance or pay cash. Neither of those issues is the sellers problem.
The same applies to a Class A buyer. It is the buyers challenge and rsponsibilty to come up with the funds not the sellers.
Unless the seller is somehow providing financing as an incentive to buy (which happens on occasion). The seller need not worry or care how the buyer obtains their funds.
Price it fairly and it will sell, this basic ideal applies to cheap items as well as big ticket items. The funding part of the sale will take care of itself.
Wow, I’m having a real hard time getting an answer to the simple question, and I’ll ask it again: “how do people typically pay ~ $80k for a 10 y/o plus class a motor home”? By
A: getting a loan/lien?
or
B: cash via cash on hand, home equity, reverse mortgage, etc.
Obviously my friend believes that buyers will need to finance it so he should sell while financing is available. If you or friends haven’t bought or sold a rig in that price range recently, fair enough, you don’t know.
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Old 06-16-2021, 10:00 PM   #14
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Wow, I’m having a real hard time getting an answer to the simple question, and I’ll ask it again: “how do people typically pay ~ $80k for a 10 y/o plus class a motor home”? By
A: getting a loan/lien?
or
B: cash via cash on hand, home equity, reverse mortgage, etc.
Obviously my friend believes that buyers will need to finance it so he should sell while financing is available. If you or friends haven’t bought or sold a rig in that price range recently, fair enough, you don’t know.
Not sure you'll get that answered on a forum... Most people don't know what the majority of other people do... They can only answer for what they did and why... IF they are willing to discuss financial matters on a public forum...

Even if you got enough reponses to form an opinion, it will be a random sample and may not reflect the actual circumstances..

You'd be better off contacting someone who works in RV loans, or even make a few random phone calls to financial institutions to see if they would finance an over 10 year old Airstream trailer...
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