Community Forums

reubenray · 01-26-2017, 04:15 AM

Before we decide to look for a new/bigger motorhome I am trying to get the answers to some financing questions. Our credit rating is excellent if this makes any difference.

1) What percent do the financing companies or dealers require as a down payment? Will it be different for a new vs an used motorhome?

2) How many years can I finance a 3 to 5 year old used motorhome?

3) Are there maximum amounts the finance company will finance for a used motorhome?

Chuck_Hammer · 01-26-2017, 04:40 AM

Easy Answer.. Ask you bank or lending company.

last year.. dealer said I could get a 15 year loan on a NEAR New RV from the bank I use.
I passed.
CASH. on older unit.

as for Limit.. value of Unit and your finances..

down payment, 10 to 20 percent Cash or trade in.

Jim28730 · 01-26-2017, 12:00 PM

There are numerous factors that will effect the amount you can finance, length of the loan, and interest rate. Some are;

1. Sales price of coach vs the book value
2. Your credit rating
3. Age of motorhome

I would suggest you shop several different sources of financing. Interest rates and loan terms vary greatly. Some institutions avoid RV financing, others specialize in them.

Good luck in your search!

reubenray · 01-27-2017, 01:31 PM

I tried to get some answers with the Bank of the West who I have my MH financed with. After 10 minutes waiting for a live person on BotW I was forwarded to Essex Credit. After listening to the music for 15 minutes I hung up.

The BotW person said the dealer would have to get with me about the financing. I am assuming she did not know what she was talking about.

gtsum2 · 01-27-2017, 02:35 PM

10-20% from those I spoke with. Depending on cost of the mh

Isaac-1 · 01-27-2017, 11:50 PM

I financed mine through my local bank, 10% down paid out over 4 years on 15 year old motorhome.

timjet · 01-28-2017, 05:21 AM

USAA will finance my 2007 DP for 240 months at 5%. I think they will loan 80% of value taken directly from NADA avg retail.

We are also considering a home equity loan if the terms are better.

Cash is definitely not better when using pre tax money.

mc4fun · 01-28-2017, 06:26 AM

Call these guys and see what they offer. Best deal I found

https://orionfcu.com/

I do the rest of my banking with USAA as well. Good luck!

Triker56 · 01-28-2017, 06:36 AM

Pay down all you can 25-50%. Or in 2-3 years you could be upside down. RV's deprecate fast. :(

vtwinwilly · 01-28-2017, 07:48 AM

Quote:

Originally Posted by timjet

USAA will finance my 2007 DP for 240 months at 5%. I think they will loan 80% of value taken directly from NADA avg retail.

We are also considering a home equity loan if the terms are better.

Cash is definitely not better when using pre tax money.

USAA told me they would finance 100% up to $100,000. Above that they require a 20% down payment.

They will go up to 240 months, and they don't care how old the unit is, but they will not loan more than NADA Average base retail (they do not add up the options).

Patti Brown · 01-28-2017, 10:40 AM

Quote:

Originally Posted by timjet

Cash is definitely not better when using pre tax money.

Depends. With the full blessing of our financial advisors, we happily paid cash for ours a couple years ago and very much like not having to think about payments or long term financing commitments.

We did, however, let our financial advisors persuade us to accept the manufacturer's 0.9% interest offer (with 100% financing) on the new vehicle I was getting for the business. Felt weird as we loathe debt, but we could not argue the reality of the math. 0.9% interest is almost free money and what there is of it is also a business deduction...

That said, the more you put down the better terms you will get on any loan. Lenders are happy the more you have put into any financed item, especially a depreciating one.

timjet · 01-28-2017, 11:00 AM

I'm not a big fan of dept either and haven't had any since paying off the mortgage 7 yrs ago. But paying for a MH with pretax money would incur a huge tax event, better to be avoided. Also you may find your Medicare premiums which are tied to income may go up, ours would by twice.

JohnBoyToo · 01-28-2017, 11:19 AM

Quote:

Originally Posted by timjet

I'm not a big fan of dept either and haven't had any since paying off the mortgage 7 yrs ago. But paying for a MH with pretax money would incur a huge tax event, better to be avoided. Also you may find your Medicare premiums which are tied to income may go up, ours would by twice.

Explain how paying cash for something makes you income go up please ?

Do you mean taking a distribution from your 401k or ????

In our case I traded in a truck and shopped the rate - the selling company said with your credit rating of over 800 and Good sam was saying 3.99%, the Bank of the West went to 3.9% with one phone call...

timjet · 01-28-2017, 11:23 AM

Quote:

Originally Posted by JohnBoyToo

Explain how paying cash for something makes you income go up please ?

Do you mean taking a distribution from your 401k or ????

Yes.
We're looking at a home equity loan. My wife retired from BOA and they are offering rates I can't get elsewhere with no closing costs. Problem is it can take up to 2 months to get approval. So we're thinking of a conventional RV loan and paying it off after the approval comes through.