Community Forums

MywifeandI · 08-20-2018, 10:51 AM

We are wondering if we can find a decent deal from a dealer on a USED Class C so we can finance or would it be better to get a loan from an outside lender to buy an RV and buy used from a private sale?

We are not looking for the best or largest, just safe, with the necessities and enough for a couple. Oh yes we will be moving cross country. Thought we could a have a vacation/move at once.

IBDAGRIZ · 08-20-2018, 11:02 AM

My first choice would be used from original owner. Hire an inspector when you find the "one".

Too much loss on buying new for me.

Griz

Solo_RV_Guy · 08-20-2018, 11:15 AM

Used from Cruise America RV Rental. Everything works. Driven hard by inexperienced users, possibly, but the *coach* systems will be fully functional.

C.A. does not put awnings on their rental units (although they can sell you one and install it if you buy the RV from them) because renters almost always damage them.

My 2005 Four Winds came from C.A. to the owner prior to me. Dometic reefer works, AC works, holding tanks and fresh water pump all good. Roof is good, no evidence of leaking.

Rent from C.A. and decide if you like the size/model; they'll credit your rental to the purchase price if you decide to buy from them in the following 6 months.

Winterbagoal · 08-20-2018, 06:13 PM

I wouldn't use any dealer to handle the financing. If you have a trusted bank or other lender, use them.

Isaac-1 · 08-20-2018, 07:04 PM

I see no benefit to buying a used coach from a dealer, other than one stop on lot selection.

Solo_RV_Guy · 08-20-2018, 07:21 PM

Quote:

Originally Posted by Winterbagoal

I wouldn't use any dealer to handle the financing. If you have a trusted bank or other lender, use them.

Forum software - in a threaded display your comment appears to be a response to my post...

/pedantry
My credit union has my mortgage, and financed my car purchases as well. Helps that I've got a good credit score and my IRAs through them, too, but compared to the last commercial banks I've used my credit union is a sainthood nominee. Great people and service. I suggest folks check out what these institutions can offer.

One finds out what the dealer will really take for a given RV when you walk in and say "I'm a cash customer." Their collective heart sinks because they're not getting a piece of the financing.

Likewise for all the aftermarket stuff they want to add to a unit (usually a new one) like fabric protection, extended warranty, etc. Just like at the car dealer, decline it all and see what happens to the "deal" when the sales manager looks it over...

Safe & happy travels, Winter!

Winterbagoal · 08-20-2018, 07:41 PM

Actually it was just luck of the draw and timing. I wasn't responding/referring to your post although I thought you covered most if the OP's questions. I was just thinking out loud about using a dealer for financing. I wouldn't, having read about some of the nonsense that has gone on at some national dealers. Banks and other lenders would be my choice over dealers was my point.

MywifeandI · 08-22-2018, 08:36 AM

So we have a 735 credit score and our Bank has turned us down for an RV loan, looking into RV loan companies do you all think it would be a good direction, otherwise we will have little or no choice to buy used from a dealer which all of you said is a bad idea. But we really want to go forward with RV life.

Teddyman · 08-22-2018, 08:52 AM

I bought an older (2002) used unit from a dealer, cash. It had 2 prior owners, low miles. I got lucky the unit turned out to be a good one. They showed me how everything works and what they fixed. Look at the floorplan to make sure it fits your style. Try to find a 1 owner creampuff from a retired man.

Solo_RV_Guy · 08-22-2018, 08:56 AM

Quote:

Originally Posted by MywifeandI

So we have a 735 credit score and our Bank has turned us down for an RV loan, looking into RV loan companies do you all think it would be a good direction, otherwise we will have little or no choice to buy used from a dealer which all of you said is a bad idea. But we really want to go forward with RV life.

735 isn't great but.... get a copy of your credit report (you can do that for free, once a year) and see what factors contribute to this score and if you have any "derogatories" that belong to someone else with a similar name; if the report shows other negative info that is incorrect, etc. Then deal with the factual matters by paying off/paying down balances.

That said, what is your *real* ability to service an RV loan? Banks don't like to make these loans (and it shows in the rate, even if you have very good credit) because almost every borrower is upside down on the loan until it's a year or 2 from paid off. RVs lose value soooo fast it makes an actuary's head spin like that girl in The Exorcist. If you default the bank is unlikely to recover the principal, let alone the interest they would have made.

Another reason banks don't like to loan money to full-timers - what do you do for income? If you're telecommuting to your job (like some lucky IT folks can), what's your job security like? If you're retired I can't think of a worse thing than to have a big installment loan on an asset that looses more value faster than you can throw money at it.

I think you'd be ahead to fix your credit and do a serious reevaluation about why you want/need to purchase today (in a seller's market). If your financial condition is genuinely reflected by your credit score I see the potential for life-changing negative results with even a minor change in your income or expenses.

As for buying from a dealer - there are good and bad dealers, just like there are good and bad individual sellers; the difference is a dealer can set you up with financing (even with your current credit score), but that financing will be expensive and the dealer makes an immediate commission for originating the loan ($1500 on up), money that you pay interest on for the term of the loan. Don't get suckered into "it's only $xxxx/month, because you'll be looking at a 15 year loan (or longer) and it will DOUBLE the cost of your RV over the life of the loan.

Good luck to you and the Mrs.

-Solo

Winterbagoal · 08-22-2018, 09:19 AM

Quote:

Originally Posted by Solo_RV_Guy

735 isn't great but.... get a copy of your credit report (you can do that for free, once a year) and see what factors contribute to this score and if you have any "derogatories" that belong to someone else with a similar name; if the report shows other negative info that is incorrect, etc. Then deal with the factual matters by paying off/paying down balances.

That said, what is your *real* ability to service an RV loan? Banks don't like to make these loans (and it shows in the rate, even if you have very good credit) because almost every borrower is upside down on the loan until it's a year or 2 from paid off. RVs lose value soooo fast it makes an actuary's head spin like that girl in The Exorcist. If you default the bank is unlikely to recover the principal, let alone the interest they would have made.

Another reason banks don't like to loan money to full-timers - what do you do for income? If you're telecommuting to your job (like some lucky IT folks can), what's your job security like? If you're retired I can't think of a worse thing than to have a big installment loan on an asset that looses more value faster than you can throw money at it.

I think you'd be ahead to fix your credit and do a serious reevaluation about why you want/need to purchase today (in a seller's market). If your financial condition is genuinely reflected by your credit score I see the potential for life-changing negative results with even a minor change in your income or expenses.

As for buying from a dealer - there are good and bad dealers, just like there are good and bad individual sellers; the difference is a dealer can set you up with financing (even with your current credit score), but that financing will be expensive and the dealer makes an immediate commission for originating the loan ($1500 on up), money that you pay interest on for the term of the loan. Don't get suckered into "it's only $xxxx/month, because you'll be looking at a 15 year loan (or longer) and it will DOUBLE the cost of your RV over the life of the loan.

Good luck to you and the Mrs.

-Solo

Sound advice/opinions, all of it.

I would add that we didn't say buying used from a dealer was bad, at least I didn't. We said financing new or used through a dealer could be very bad, as Solo has suggested.