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Old 04-30-2007, 07:51 PM   #15
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I tried USAA for the loan, but they will not take a chance on a vintage trailer. My bank won't even go past 1993 on a trailer loan.

Steve
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Old 04-30-2007, 08:27 PM   #16
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I have always used USAA insurance. They have the best rates and great service. I have a few savings accounts with them as well, and I plan to ask them about financing an Airstream. My father was in the military, so that makes me eligible to be a member.

M.W.
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Old 04-30-2007, 08:32 PM   #17
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They will finance a NEW unit, but not a restored vintage trailer.

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Old 04-30-2007, 09:16 PM   #18
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Quote:
Originally Posted by soldiermedic
They will finance a NEW unit, but not a restored vintage trailer.

Steve
Yeah, I saw that. New being after 1993?
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Old 04-30-2007, 09:32 PM   #19
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Steve,
This is a situation where your relationship with your bank (banker) is more important that value of the trailer. To those of us who appreciate and have some understanding of value on our respective unit, a bank's knowledge and policies often extends only to the limits of their value source, ie. NADA, etc. Whether it's an Airstream, vintage "this or that" or coon dog, a bank doesn't want these items on their parking lot in event of forclosure and they want some knowledge what something might bring in quick liquidation. IMHO a personal loan is your best alternative. If you've been given a quote for such a product at 9.25%, that's 1.0% over current prime. Suggest to your banker that you would like to go a year at a time (normal term for unsecured credit), with monthly payments based on 5 year amortization. You then can accelerate payments as cash flow permits (tax return, re-up bonus, inheritence, etc. and total interest won't be that much in the big scheme of things. Note would then just be rewritten annually with possibly some adjustment in interest rate (up or down). Then, when the next "outside their box" thing comes up you've already established your credit worthiness. I personally would not be afraid to use the home equity option if you can discipline yourself to repay aggressively as possible. There are a couple of caveat's, but more than likely that interest would be deductable whereas your unsecured note would not. My philosopy is that you have worked hard to build the equity in your home, so why not now let that equity work for you. The key here is not to eat up equity in your home with frivolous things, and repay aggresively.
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Old 04-30-2007, 11:19 PM   #20
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...$7500 at 9.95% x 60 months is $159.00 per month per the bank...Steve
yea steve that's correct...

the point being that even IF you could get 6.0% (a very very good rate) for 5 years on that sum...

the payments would only be 15-17$ less per month.

that would amount to 900$ less in interest over 5 years, but 6.0% isn't realistic for your loan...

a home equity loan might be 7-7.50% and perhaps lower IF you've got a top tier fica score/credit history.

a 7.5% rate would mean payments at 150.00 monthly, which is 540$ less interest....

so the point being, the rate offered you on an older unit is reasonable.

i'm not a fan of risking the primary residence (your house) as collateral for cars, rvs or like items...

college expenses maybe, or life saving medical care sure, but not toys that can vanish...

others do use home equity loans for whatever...

have fun with the new vintage beauty!

cheers
2air'

and the interest on your loan is deductible IF used to pay for the rv (galley, bath and bedroom) providing you itemize deductions..
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Old 04-30-2007, 11:31 PM   #21
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I don't think a home equity loan is too bad if you're putting money into something that has some resale value. Home equity loans are no good if they go into buying something new (like a brand new trailer) that depreciates rapidly, because suddenly you're paying interest and making payments on something that has just lost 25% of it's value. For an older unit, you don't have to worry about a rapid decline in value.

But I'd recommend paying the loan off as quickly as possible. I'm not a big fan of debt.

M.W.
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Old 04-30-2007, 11:49 PM   #22
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I don't think a home equity loan is too bad if you're putting money into something that has some resale value....
true but lets look at the cost/price/value/resale for the unit being purchased here...

a vintage airstream rehab'd by one of the TOP NAMES in this business...

-price to restore 30,000$ + just a short time ago...

-price to purchase now 17,500$ with a very happy buyer at that figure...

-loan amount 7,500$, so approximately 42% with the buyer covering 10k$...

-right or wrong not many banks will do even this much on a vintage unit...

-insured to 'agreed value' which will likely be current purchase price NOT the restoration costs...

now, IF the unit is wrecked or stolen or quickly beat up buy hail or a tree limb, what is it worth to the next buyer?

and IF steve recovered fully from insurance (15-17k$) could he be able to buy another one like this one?

'resale value' is wildly varied and ultimately whatever buyer/seller agree too...

but basically the current bank loan is close, and declining monthly at the restorated trailer is used/worn and so on.

it appears to be a fantasic unit (but without an air conditioner) and will bring much joy camping...

and it IS a head turner...

so as noted in one of your 'shopper threads' myra, rehab/restoration costs are like home improvements...

a value to the user but the costs are not recovered at resale...

and this buyer is full duty military so if/when his status changes quickly and without notice....

resale takes time....just look at the issue he currently has with a deadbeat repair shop that is holding his other unit as a hostage...

many in the service lose money and toys when their status changes...

lets hope soldiermedic steve and his soldiermedic wife and kiddos get to enjoy plenty of camping and soon!

cheers
2air'
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Old 05-01-2007, 12:05 AM   #23
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2air,

You might not recover all the restoration costs on a vintage but it does increase the value of the trailer. I think a vintage trailer in mint/working condition is always going to fetch a decent price. Good condition vintage units are only going to be in shorter supply over the years. And the smaller ones are more likely to maintain their value over time because of their flexibility and ease of storage and because gas prices are only going to go up. Compare that to a new 2007 Safari, which is just going to continue to decline in value. A vintage unit is not necessarily a good investment. You may not make money on it, but you won't lose as much either.

If you use a trailer for a work space, I wonder if you can write off the depreciation?

M.W.
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Old 05-01-2007, 12:21 AM   #24
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. If you use a trailer for a work space, I wonder if you can write off the depreciation?M.W.
yes some of the office space deductions/depreciations can be used...

very limited and with caveats...

there are a few threads here on this topic...

and they are covered in the books i suggested 2 ya...have ya been book shopping?

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Old 05-01-2007, 12:27 AM   #25
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I'm trying to remember what books you suggested. Will you remind me again? I try and stuff all this info into my brain, but some of it falls out, and I have to stuff it back in again.

I'm packing my belongings in boxes tonight. I still have no trailer and nowhere to go. I need to get a trailer soon so I can join my people.

M.W.
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Old 05-01-2007, 12:41 AM   #26
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I'm trying to remember what books you suggested.
here

http://www.airforums.com/forums/378971-post14.html

and here

http://www.airforums.com/forums/f314...=1#usercptools

many full times have written books too so search on amazon by topic/title and many will appear...

many are great rv travel full time in mexico, the baja or pacific northwest or panama via mexico...

the church/church books are very complete but don't offer much on 'selecting a unit'

Rolling Homes Press

while this site helps with rig selection and budgets...

Road Trip Planner


cheers
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Old 05-01-2007, 12:53 AM   #27
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Oh, no, not the "For Dummy" and "Idiot" books! Please 2air, please don't make me buy those. Going through the other suggested reading material now...

Thank you,

M.W.
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Old 05-01-2007, 08:36 AM   #28
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Quote:
Originally Posted by soldiermedic
They will finance a NEW unit, but not a restored vintage trailer.

Steve
Steve, that is normal with cars, trailers, boats, what have you. They can take the unit back and get their money back, a used unit dose not have the value and is not worth the time to document unless you are in the vintage business. I purchased my unit new using 0 interest credit card loans, which is a game. I have some very high credit limits and receive offers daily. I have to move the loan every 6 to 12 months to a new card to keep the 0 interest as they are really teaser rates. Sometimes if I get a real low interest offer for life I will lock the loan at that rate.

Here are some issues, which you need to be aware of.
  • This is considered an unsecured loan; it can have an adverse impact on your credit score.
  • Do to the fact it is an unsecured loan you do not have to carry insurance as you would on a standard mortgage type loan. You will have the responsibility to cover your property.
  • Due to the credit card companies carrying the loan as a teaser the penalties if you are late are miss a payment can be severe.
  • You need a large credit line on several cards to move the money as necessary. Must be from different banks not just cards with different names.
  • You have to stay aware of the balance of the loan and the length remaining on the tease rate.
  • Yes if you do inure interest expense you can call it a second home.
  • You often get a free month when you move the loan to another card if you plan carefully.
  • The home equity loan line of credit is an attempt to paint debt as housing debt by banks giving the impression to the consumer the interest expense is deductible in an effort to boost the amount of loans written, in most cases the interest expense is not deductible due to the type of good purchased with the loan, that is another story. Read the disclosure on any home equity loan very carefully. A trailer qualify as a second home no matter the type of loan and the interest expense would be deductible.
  • I am not an Accountant so verify all the above information with a professional, I have no clue as to the validity of my own statements.
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