Motorhome Finance

[summer69]

I recently was shot down when trying to finance a motorhome. I realize now that I had a medical bill recently that went to collections, so on top of my score not being super strong (695) I guess I will wait and fix my credit issues. I applied with ESSEX Credit. I applied online. I wonder if I would fare better by going to a very big dealership who has lots of sources. I found a finance company online called AMS Financial. Don't know anything about them. My bank told me that they generally have customers have 11% interest on RV loans. so i didnt even apply.The motor home we found was a 2009, low miles class C. We really don't really need it until next May. Oh, and the loan was only for $50,000 and I was going to put $5000 down.
We have put the breaks on with searching, though I can't help but be tempted to keep shopping...BTW, this will be lived in full time! But I did not put that on the credit app. Any thoughts?

[tedgard01]

Good luck! No thoughts...

[jfran304]

Until you get your credit fixed I doubt you will find any financial institution that will loan you money on a vehicle/RV without a high interest rate and a large down payment. Can you find a cosigner?

Good luck,
Jon

[Eyephoto]

Refinance the house and get a 3-5% rate. That's what we did.

[Isaac-1]

Just financed. 15 year old rv this week for about half that amount through local bank w 10 percent down at 6.75 percent with score not much higher than yours. Not full time though

[awol50]

Try to clean up your credit first. Then before you start looking to buy start shopping for the loan. Sometimes upping the down payment and/or shortening the loan length can help on the interest rate too. Look into a credit union too.

We have very high credit scores and this summer put 20% down and got 2.99% on a 10 year loan for around $145k on a new RV thru a credit union we have used in the past. Personally, I would only look into online financing sources as an absolute last resort.

If you are going to buy from a private party, having financing kind of lined up ahead of time can help a lot in scoring a good deal as buying without a contingency is an excellent buying bargaining tool.

[NLOVNIT]

As others stated, fix your credit first. An RV is a want, not a need. Purchasing one can be postponed.

Whenever one is anticipating applying for a loan, always review your credit score before applying. Anyone can get their score free from annualcreditreport.com. Then if you've forgotten about a past unpaid bill, it will show on the report & you won't be surprised by it.

Lori-

[jfran304]

Originally Posted by Eyephoto

Refinance the house and get a 3-5% rate. That's what we did.

I thought about that too until I read where they said they would be living in it full-time which made me think they may not have a house to refinance.

Jon

[Mike and Cha]

Fix your credit first, but if I read your post correctly you are buying the MH for $50000(plus tax and license I assume), and putting less than 10% down. Two things, first do your research as you may be paying too much for the MH(I have seen significantly better deals for pristine condition Class C's of the same year), and second just so you don't end up upside down in the loan you need to put more money down, I would suggest at least 20% of the OTD price. Just my opinion but it may help you to get the loan and MH you need.

[Bucky1320]

Just a thought.. It will take a few years to improve your credit. Act like you bought it, put the payments into a savings account. At the end of 5 years go pay cash for it. Great credit is even better when you don't have to use it. We have 820's scores, and we pay cash for most things.

[summer69]

Originally Posted by Mike and Cha

Fix your credit first, but if I read your post correctly you are buying the MH for $50000(plus tax and license I assume), and putting less than 10% down. Two things, first do your research as you may be paying too much for the MH(I have seen significantly better deals for pristine condition Class C's of the same year), and second just so you don't end up upside down in the loan you need to put more money down, I would suggest at least 20% of the OTD price. Just my opinion but it may help you to get the loan and MH you need.

I had to put an amount on the credit ap, so I put asking price- though I wasn't going to pay that, just get approved for it. Anyway, I may wait and pay cash or pay off debt before we go ahead. Like I said, we have time. I also thought about putting our vehicle in as a trade, but we still owe on it. My husband has become disabled so all we will have for income is his disability check and whatever work I can periodically camp hosting. We are going to need out of our current situation come July- August. I should have never applied online I think. My bank is wells fargo. The credit union I talked to doesnt even like to do loans on anything more than 7 years old, and I was told if I didn't have an excellent crdit score they would not approve it. Geesh!

[jfran304]

Summer 69,

Check out PPL Motorhomes, they get a lot of RV's in on consignment that the owners want to get out from under and some have good prices.

Used RVs, Motorhomes for Sale, and Consigned sales - PPL Motor Homes

Good Luck,
Jon

[Grenadiers]

Wells Fargo is the last place you want for an RV loan; they just don't want that business. We tried with them, and they hemmed and hawed so much, and finally came back with an outrageous 'proposal', 11 3/4 percent interest, five year loan!

So, as we bought through a dealer, they did some checking, (we have excellent credit, no debt btw) for us. We paid down 20K, borrowed 60K at 4.5%, 12 years. Mountain America Credit Union, West Jordan, UT. After we sold our primary home, we paid it off, about a year after taking out the loan.

Like some posters mentioned, probably better off finding the RV you want, negotiate the price, and then do the financing.

[jfran304]

For financing check out Essex Credit.

https://www.essexcredit.com/home/rv/rates/

Jon