rockcrawler304

The wife and I have been thinking of getting an RV. Found one about 2 months ago we liked but never really got to the payments part of it. We probably won't do anything until closer to summer time but what kind of terms are available when financing an RV? I have heard up to 15 years is possible. How smart (or stupid) is it to go that long?

The one we found is a new one but I have been thinking we should look for a used one to get a better deal. By used I mean about 2 years old if possible. Any thoughts or info would be great.

RRAMctd

well you will have to do that math when they tell you the payments. I bet you could buy a couple trailers for what you will spend. Used is great, better deal, but often hard to get financeing for them if you need it. Maybe not so bad with a 2yr old model, also you live in another country so things might be easier there. I went from wanting to spend 8-10 grand, to looking at almost new, to ending up buying a used 5th for 12k. Probably only worth 10 but I bought it on a lot and told em I would give them payments till spring, when I would buy it out. So they store it and I get new batteries and spare tire when i go to get it.

shortbed rv

my Credit union had a deal in 2004. The more you put down and the shorter the loan period then the lower the interest rate. 20% down and 5 years = 3.5% on a new rig.

rockcrawler304

Thanks guys.

I'll have to check out my credit union. I was thinking about 6-8 years. I don't have any set price in mind or a payment I would be comfortable with cuz I really have no idea what is "Good". It's not like buying a vehicle where I know more about what is a fair and good price and payment.

Danavilla

I've owned several Rvs over the years and am a STRONG believer in buying a used, and comparatively inexpensive RV for your first one. That way you actually get hands on experience of what will make you happy in one. I've known a number of folks who jumped in and got a "real nice" one only to learn that they either didn't use it after a while, or it didn't quite fit their needs and lifestyle.

Don't get me wrong, I'm not trying to discourage anyone; quite the contrary. It just seems that until you use one for a time you don't find out what it's all about. If you aren't going to use it enough, making payments on anything gets old quick. Kind of like alimony.
If you find you like RVing, you can move up, both in size and features that prove worthwhile to you.

You might even consider renting a couple before buying. Try http://www.1000trails.com/ for a free or cheap weekend stay, if there's one in your area.

Dan

PaulDaisy

If you get longer term, your monthly payment will be lower. Most loans today have no prepayment penalty (but watch out), so you can get long term, low monthly payment (in case something in your life goes askew) and pay it off asap to kill the interest. They do charge interest upfront on long term though, so if you don't pay up early, you get screwed.
I chose a different tactic. I got the first loan I saw, at 6% from my CU. The interest is upfront and the deal is not so good but it was very easy to work with the dealer through the CU. now I am transferring the cost onto a promotional credit card with 2.99% APR and will pay it off asap too, and my loan with the CU is nearly done for.

rockcrawler304

Good info so far. THANKS.

In another thread I have seen several top brands to look for when buying. But there are still lots of others out there. How about brands to stay away from and why? I was thinking TT but now really thinking 5th wheel instead if that matters.

catnfool

you mean you don't just pay ca$h? Yahoo has a cool payment calculator on their finance page- you just type in the $ and intrest rate/years and get solid numbers. Quite amazing what intrest will do over time

Jeff in TD

I'd second the thing about buying used. RV's loose huge value when you drive them off the lot, and if you decide it doesn't meet your needs or whatever you would take a beating trading or getting rid of it.

Also, if you got a new one on an 8 year loan, you could end up in it upside down. Personally I wouldn't put myself in a situation where I owed more on anything than I could sell it for.

RickG

This may help when checking used . http://www.nadaguides.com/SectionHom...=25&p=0&f=5602
RV's are like other vehicles . Never pay MSRP . Pick up a copy of "RV Trader" classifieds and you'll see all the reduced prices dealers offer . RV's have yearly model changes also .

TexasCTD

I think Dan (and others) made an excellent post here. I agree about buying used too. RVs depreciate ALOT the first couple of years. Even if buying used, I would recommend to go to an RV show somewhere and look at all different types/models etc. to give YOU an idea of what YOU want. Then go find the same thing or similar for the best price, used. You can also find out some good info about RVs on www.rv.net Good luck!

GEJim

I bought a new 2007 5th wheel in Dallas last June. Interest rate was 5.9%. I am retired so went with 15 years to lower the payment. I Plan to keep this one for awhile. Also an important fact, the interest is deductable on your Federal tax return. The trailer is considered a 2nd home.

RickG

You're correct . Here's a link with the info http://home-equity.interest.com/home..._10252007.html
But while the savings on taxes helps many people over evaluate it . If you are in the 15% bracket and pay $2,000 interest you only reduce your tax payment by $300 . This could be more beneficial if you could combine it with other deductions to lower your taxable income from the 25% bracket to the 15% . For a single person reportable income over $32,500 raises you from 15% to 25%

huntr70

Just make an offer that sounds unreasonable, and the dealers usully bite.

You should never, ever pay more than 75% of the asking price.....there is a TON of mark up involved with RV's, and the manufacturer does not set MSRP, the dealers do.

FiverBob

I'm with Jeff on this one. Hate to preach, but my pappy taught me never be overly proud of anything that depreciates, and never be so proud you are willing to make payments on it. That being said, Jeff's statement about being upside down applies to cars, trucks and especially RVs. RVs depreciate horribly when new. Always buy used. Then, if you HAVE to make payments, make it the shortest possible time you can afford. Why mix the agony of the depreciation along with the double agony of all the interest you are paying. Suddenly it is much cheaper to go rent an RV for your several trips unless you will be using it a lot. A good rule for economic freedom is delay self gratification. Wait until you can truly afford it. If you can afford payments, make those payments to yourself into a good money market for a couple years, then go pay cash. I know, you didn't want to hear this.

BoringBob