First time buyer, is this a bad deal?

[roanmountaincampers]

My dealer got me 4.5%. Had to go 15 years to get that rate but no penalty if I pay off early. Much longer than I wanted to go but by doubling up payments I can have it paid off in 6 years. If something comes up I can drop back to the original payment.

[arlee453]

Credit is definately tighter for RVs than it is for other types of standard loans (car/house) because they are considered 'luxury' items. Ie, if you have a loss of job or other major life change that leaves you unable to pay your bills, most folks will stop paying on the RV before a car or home.

If you have really good credit (700+) you can get some pretty good rates. However, many lenders look at the LOWER of the two credit scores, or average them together. That may be why you are being quoted such a higher interest rate.

A couple years ago when buying our first TT, we talked a lot with the finance guy at the dealer ship about how RV loans worked. He told us that at that time he wasn't able to get financing at all if any of the co-signers had a credit score was 650 or lower. When we did our new TT purchase last year he told us that it's a bit looser now, but still a lot of scrutiny.

It also depends on what area of the country you are as to what rate you will be quoted.

Check with your credit union - ours has a standard 7.5% on all RV loans, BUT they don't look at your credit score, and will do smaller loans. They do require 25% down on the smaller end loans. The advantage is that they only look at your over all income to debt ratio AND your actual credit report to make sure you don't have any late payments, foreclosures, etc.

It is true the larger the loan, usually the longer terms and lower rate you may be able to get with a lot of traditional lenders.

It definately doesn't hurt to shop around on your own and not just go with whatever the dealer comes up with first. There are a lot of options out there! Good luck!

[Linck]

This is very informative. Thank you. We kinda gave up on this deal especially my husband. If we keep shopping for loan it is going to hurt our credit score and we just don't feel we could get a better deal. Sad We finally find "the one"

Originally Posted by arlee453

Credit is definately tighter for RVs than it is for other types of standard loans (car/house) because they are considered 'luxury' items. Ie, if you have a loss of job or other major life change that leaves you unable to pay your bills, most folks will stop paying on the RV before a car or home.

If you have really good credit (700+) you can get some pretty good rates. However, many lenders look at the LOWER of the two credit scores, or average them together. That may be why you are being quoted such a higher interest rate.

A couple years ago when buying our first TT, we talked a lot with the finance guy at the dealer ship about how RV loans worked. He told us that at that time he wasn't able to get financing at all if any of the co-signers had a credit score was 650 or lower. When we did our new TT purchase last year he told us that it's a bit looser now, but still a lot of scrutiny.

It also depends on what area of the country you are as to what rate you will be quoted.

Check with your credit union - ours has a standard 7.5% on all RV loans, BUT they don't look at your credit score, and will do smaller loans. They do require 25% down on the smaller end loans. The advantage is that they only look at your over all income to debt ratio AND your actual credit report to make sure you don't have any late payments, foreclosures, etc.

It is true the larger the loan, usually the longer terms and lower rate you may be able to get with a lot of traditional lenders.

It definately doesn't hurt to shop around on your own and not just go with whatever the dealer comes up with first. There are a lot of options out there! Good luck!

[arlee453]

I would add that we walked in the door expecting it to go down similar to a car loan. Our first RV was a popup that was way less than what we would have been financing on a new car.

We were really surprized that RV loans, even if in the smaller (ie less than a car payment) range are so much harder to get. We found out quickly that RV loans are not like car loans and that they usually require higher down payment and stricters terms.

[Scratch]

9% is certainly high considering your credit score. The credit union option is a good one. Can you afford to put 25%/$6K down? If so, you should be in the 4 - 5 percent range...

Good luck...

[Linck]

So, we took the advice from the forum and ask our local credit union. They gave us 3.5% with zero down payment. Thank you everyone for helping us out. Now we are looking into other TT just to make sure surveyor 264 is really a good way to go. I'm sure we will have more questions so thanks in advance!

[SPPD]

I am glad it worked out for you!

SPPD

[tclcyl]

We just purchased a new TT and our interest rate is 5.99%. had to put down 10% and our credit scores were close to your higher number. I think I would ask them to look into a different bank. Mine is financed through Bank of the West. Hope that helps!

[Dodge Guy]

Sounds like the dealer is trying to make money off the interest rate. Yes they do make money on financing if your not careful! With $4k down there is no reason your rate shouldn't be more than 5%.

[comfun1]

It's always good to shop for a loan before you shop for the item. Remember shopping for a loan is no different than shopping for an item. Banks and lending institutions are are selling us a loan. Stores sell us a shirt, a lawnmower etc.. There is no difference between a retail store and a lending institution and don't think of them as doing you a service. They are there to make a profit the same as a store. (I know you can't tell from my message but I don't like the big banks). I had my share of loans when I was younger but thankfully no longer need them.

[miknem1]

I bought my first trailer in april the dealer said 18% for ten years i told him he lost his mind i went to my credit union and got 7% for 60 mo. Rv are a luxury loan your rate will always be higher then if your buying a car. 9% is high but not ridiculous i found the more money you finance the longer the term they will give you and the rate is a little more.

[jamesroadking]

When buying toys (motorcycles, RV's etc.) pay cash.
If you already have saved up $4k, keep saving, for $5-10K you can pick up some nice used RV's.