Aug-16-2020 03:27 PM
Aug-17-2020 07:27 AM
Aug-17-2020 06:15 AM
Raife wrote:
We just purchased our travel trailer and got a much better rate than that. We shopped around for a couple lenders, got preapproved through our bank and the dealer was able to get a another .25% off. We financed for 144 months to get the interest rate (longer term = lower rate), put a sizable down payment, and will be sending in almost double the scheduled payment amount. We will end up paying the loan off in ~5 years as opposed to 12 years.
Aug-17-2020 05:34 AM
Aug-17-2020 05:04 AM
Aug-17-2020 04:52 AM
Aug-16-2020 11:59 PM
Aug-16-2020 09:31 PM
Aug-16-2020 08:11 PM
SlothHorn wrote:
FWIW, we have personal reasons for wanting a longer termed loan. None of it has to do with affordability, cash flow, bad credit, lack of a down payment, etc... The idea was to time the loan so that it'd be paid off right around the time our mortgage is paid + the time frame at which our youngest would be heading off on his own.
Looks like we'll need to readjust our thinking. Thanks for all the help.
Aug-16-2020 07:18 PM
Gdetrailer wrote:
Why?
You do realize that $23K trailer in one year will be worth $11K on it's best day?
In 5 yrs maybe $6K
In 8 yrs maybe $3K
and if in the case of severe water damage absolutely nothing in a hurry.
It is a depreciating asset, loses value the second you sign the paper work.
8.49% interest for 12yrs on an asset which loses value every second you own it and is highway robbery.
So, a loan of 23K for 12 yrs at 8.49% means your "purchase" price once you get done paying the loan off is $36,747!!!
Interest paid is $13,747 which is one heck of a lot of interest and cost for a RV worth pretty much zero at the end of the 12yrs.
The payment is $255.18 per month for 12 yrs.
For 8 yrs the same loan and same interest you only pay $8,766 for a grand total cost of $31,766 and the loan payment would be $330.90..
I would highly recommend you play with an amortization calculator to see how loan length and interest rate affects how much interest you pay and what your payments will be..
AMORTIZATION CALCULATOR
That 8.49% interest is way too high, I would recommend you talk to your own local banks, sometimes you can also get slightly better interest rates when purchasing through the RV dealer.
According to US NEWS a credit score of 600 or higher should get you an average of 4.83% which is nearly half of what you are talking about!
Shop around, lower interest rate WILL drop your payments considerably.
Additionally, put as LARGE of amount of cash down you can comfortably afford in order to reduce the amount you need to borrow, that WILL make for a considerably lower monthly payment..
Never fall for those what do you want the payment to be sales come ons, they bury you in interest debt by making the loan term longer!
Aug-16-2020 07:18 PM
Aug-16-2020 07:04 PM
Aug-16-2020 05:57 PM
Aug-16-2020 05:52 PM
lane hog wrote:If you retain the down payment you are never underwater. You just pony up at the end instead of the beginning. Virtually any RV loan can be accelerated at any time.
The only RV's I've ever seen with a 15 year note is a motorhome, and they also offer 20 year notes on the bigger units. Bad idea given how quickly depreciation hits and how long you'll be underwater.
Aug-16-2020 05:47 PM
Aug-16-2020 05:43 PM