How to finance a 13-year-old motorhome??

[Ahsokay]

Hello everyone - thanks so much for all the great replies. Really appreciate the insight, it has helped a lot.

I will check out some other credit unions and see if they can do something. As far as NADA goes, I work at a dealership so I know that the RV is in line with NADA values.

I think Doug427's experience shows me that I probably just needed to put 15% down to be approved.

Doug427- That is a very insightful response. Perhaps I will just need to wait and see what I can do when they get in contact with me. If I would have known 15% down was the minimum, then I would have had no prob putting some skin in the game.

Thanks everyone! Still open to more ideas if you have any.

[foundwaldo]

I financed a 2005 last year with no money down and financed everything tax title vehicle. Had no issues through my local credit union. I just had to make it under a certain amount so I didn't have to pay a higher interest rate. Look at some credit unions in the area and you made find one.

[Ahsokay]

Originally Posted by Doug427

I just financed a $85K 2005 Newmar Mountain Aire Class A with Southeast Financial. I was told that 15% down was the minimum, with a 15 year term. The 0% down is absolutely what's killing your application, no doubt about it. They were great to deal with and super responsive in their communications. I'm guessing the difficulty in reaching them is likely due to this whole virus mess. Hope this helps.

Hi Doug427,

Just curious, did you finance for purchase at a dealership or private party? I wonder if this makes any difference.. I am purchasing from a private party.

[MWeiner]

Originally Posted by Ahsokay

I'm wanting to finance a motorhome from 2007 (Fleetwood) and found a place that does loans on RVs up to 20 years old (Southeast Financial). Unfortunately, they didn't approve me for a 2005 Winnebago ($50,000 loan with $0 cash down), and I'm wondering if anyone knows of any other places I can try to finance a 13 year old motorhome?

I can't get in contact with the finance company (Southeast Financial) that declined my application, but I'm pretty sure it's due to a somewhat shallow credit history (Highest loan so far is only $19K). Typically, I can contact the financing company to see if they will adjust terms if I put more $$ down or try to finance something else, however I haven't heard a word from these people other than that my app was declined. I have a 765 credit score, so it's not bad but not amazing.

I've tried my local credit union, which approved me for a $50,000 loan with $0 cash down at 6.74% APR - however, this was for a new RV from 2020. Unfortunately, they will only do loans for RVs that are 9 years old or younger. :/

I need to finance $35-40K and will put $5-10K cash down for the 2007 Fleetwood that I want. Does anyone know of anywhere I may have luck with financing a 13-year-old motorhome?

Thanks so much for your replies - much appreciated!!!

-Ahsokay

How long were you planning on financing this $40,000?

I'd advise you to find another way to pay for this like taking money from anywhere else, 401 k, stock, or other asset.

Depending on how you long you finance, you could wind up paying twice for the coach, and these things depreciate so fast, it's unbelievable. In just a few years, you're going to find you still owe way more than the vehicle is worth and you will not be able to sell it. I hope you're planning on keeping this for quite a while.

RV's are a financial train wreck and the cost of the repairs, maintenance and depreciation is staggering. Sorry, I'm really trying to just be honest and direct with you.

I wouldn't say that I regret it, but, when I sell my RV, I will never purchase one again.

[rarebear.nm]

Originally Posted by gfs1943

Are you eligible to join USAA? If so, they seem to be pretty lenient with loan terms for members.

I've talked with USAA exactly about this detail, they do not care about the age of the RV, only it's value vs. loan amount and your ability to repay the loan.

I know that does not help the OP.

[Ahsokay]

Originally Posted by MWeiner

How long were you planning on financing this $40,000?

I'd advise you to find another way to pay for this like taking money from anywhere else, 401 k, stock, or other asset.

Depending on how you long you finance, you could wind up paying twice for the coach, and these things depreciate so fast, it's unbelievable. In just a few years, you're going to find you still owe way more than the vehicle is worth and you will not be able to sell it. I hope you're planning on keeping this for quite a while.

RV's are a financial train wreck and the cost of the repairs, maintenance and depreciation is staggering. Sorry, I'm really trying to just be honest and direct with you.

I wouldn't say that I regret it, but, when I sell my RV, I will never purchase one again.

I've really spent a lot of time thinking this through and my plan was to finance at a 15-year term but pay it off in 2-3 years. If something ends up happening financially then I can fall back on the small payments ~$400/mnth.

Thanks for your honest advice and info.

[NLOVNIT]

Do you have S&B home with equity? What's a HELOC going for now? I'd think that'd be WAY less than the 6.75%APR. I know both BoA & Chase are under 4% for up to $1million.

On edit: Never mind. I just saw post 3.

L-

[Roy-c]

OK, let me see if I have this correctly. 2007 motorhome, doesn't own a house, 0% down, in a depressed economy.
There is no way a bank will go for that !!
Sounds like a plan to live in an RV for less $ than an apt.
Nice plan but not going to happen. Banks exist to turn a profit not to help the average person get ahead.

[Roy-c]

Just re-read the first post. I apparently left out the part about a shallow credit history.

[red300zx]

I struggle with the thought of financing an asset that depreciates as fast as a MH. My question would be what is the guesstimated value of the MH at the term of the loan and work backwards to what the real cost will be for a financed purchase.