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Old 11-28-2014, 09:28 PM   #1
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Good credit interest rate ?

So if a person has good credit, not excellent but good, what is a fair interest rate? When I order my trailer and finance it with the dealer, I want to know if I am being ripped off or not.
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Old 11-28-2014, 09:32 PM   #2
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Check with your local credit union or bank. I don't usually finance thru dealerships but through my bank instead.
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Old 11-28-2014, 09:41 PM   #3
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I agree you will likely get a better rate where you bank especially if it is a credit union. I got a 2.6% rate last March from my CU and the dealer said they could not come close to matching it. As an added bonus my accountant told me I may be able to deduct the loan interest as an RV can be considered a second home.
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Old 11-28-2014, 10:22 PM   #4
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The rate while important, is not as important as the term of the loan. Just sayin'
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Old 11-28-2014, 10:54 PM   #5
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2.99 for RVs at our local credit union
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Old 11-28-2014, 11:24 PM   #6
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The rate while important, is not as important as the term of the loan. Just sayin'
My bank told me the longer the loan was for the lower the rate. No early payoff fee, so you get the longer term at lower rate and pay it off early.
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Old 11-28-2014, 11:30 PM   #7
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As was previously wisely said, you want to be careful about the length of your loan. Just to make the payment low I've seen loan terms of 10, 15 and even 20 years. Some trailers may not even last that long making these long-term loans a very bad idea. Try to put as much money down as you can, at the shortest term possible. IMO, if you can't pay the RV off in 5-7 years or less, it is probably more trailer than is really affordable.
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Old 11-28-2014, 11:33 PM   #8
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Quote:
Originally Posted by Still Kickin View Post
The rate while important, is not as important as the term of the loan. Just sayin'
I would respectfully disagree--for me, the rate determines the term. If it's a low rate, I don't feel bad stretching out the length of the loan, and if the rate is higher, I'm usually determined to pay it off sooner. The rate is everything--it decides how much it's going to cost you to use someone else's money to buy your toy instead of using your own. With rates being so low, you're almost crazy to use your savings.

While I generally agree with the bank vs. dealer vs credit union debate, you gotta look. When I bought my Jetta in March, VW of America was having a .9% rate special for qualified buyers. With good credit, I was able to take out a loan with them over 5 years that will cost me less than $1500 over its life. Now, you'll probably never get that kind of rate from an RV manufacturer--after all, car dealers need to sell you a car more than you need to buy one, but RV dealers know that you're there because you WANT an RV or camper--no one NEEDS an RV or camper. So they offer rates accordingly...
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Old 11-28-2014, 11:39 PM   #9
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My bank told me the longer the loan was for the lower the rate. No early payoff fee, so you get the longer term at lower rate and pay it off early.
That is great to have that kind of flexibility. I would have probably gone with a longer term lower rate loan but my CU told me just the opposite, shorter the term, the lower the rate. Oh well, I am still happy with the deal I have.
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Old 11-29-2014, 12:31 AM   #10
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There are a lot of variables as to which loan is best for a particular situation. But in every case you must make the effort to understand how much the financing is going to cost. Also be aware some dealer finance people are paid by commission and may subtly steer you into the most expensive financing option they can.
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