 |
10-14-2016, 08:49 PM
|
#1
|
2 Rivet Member 
Lexington
, South Carolina
Join Date: Sep 2016
Posts: 21
|
Financing a leftover unit
I was interested in purchasing a leftover '16 at Colonial and wanted to put down 10% and finance the rest for 8 years, was told that they only do 15 year loans. There is no way I would finance a trailer for that long (even if they have no prepayment penalty), anyone get a shorter term than that from them? This is the only thing keeping me from buying a trailer for them. Wanted to go older, but then I need more money down because the banks won't lend to much on a 2012 unit compared to the selling price. I probably should loan shop but I like one stop shopping.
__________________
__________________
|
|
|
10-14-2016, 08:53 PM
|
#2
|
Rivet Master 
2006 23' Safari SE
Biloxi
, Mississippi
Join Date: Nov 2011
Posts: 8,278
|
Check with your bank or credit union.
__________________
__________________
MICHAEL
Do you know what a learning experience is? A learning experience is one of those things that says "You know that thing that you just did? Don't do that."
|
|
|
10-14-2016, 09:24 PM
|
#3
|
Some Guy

2018 28' Tommy Bahama
Nashville
, Tennessee
Join Date: May 2015
Posts: 306
|
Finance it for 15 (better interest rate) and write off the interest as 2nd mortgage. (trailer qualifies).
Pay it off in 7. These are simple interest loans with no pre-payment penalties.
D
__________________
The Jarretts
Nashville, Tennessee
2018 27' Tommy Bahama
2015 F250 TV-Petrol
WBCCI # 22342
|
|
|
10-14-2016, 09:24 PM
|
#4
|
Rivet Master 

2006 25' Safari
St. Augustine
, Florida
Join Date: Oct 2011
Posts: 2,435
|
SCBarber, check on those borrowing facts yourself. I borrowed initially on mine and it was a six year-old model. They set it up for 12 years but I paid it off in a year- just had to shuffle money. A 2012 is only four years old. It may be that their lender may not go that old or they do not want to sell it as much as they do a new one. You may have to put down more though.
__________________
WBCCI 8653/AIR 60240
2017 Ford F-150 3.5 Ecobeast Gen 2 3.55 Platinum
|
|
|
10-15-2016, 12:10 PM
|
#5
|
3 Rivet Member 
2016 30' Classic
Santa Rosa
, California
Join Date: Apr 2015
Posts: 143
|
I agree with djarret. Take the 15 year financing, make one principle plus interest payment per month, and an additional monthly principal-only payment of the same amount (or less, when convenient). You will have it paid off within 7 years.
__________________
Happy Trails,
Phil
|
|
|
10-15-2016, 12:59 PM
|
#6
|
2 Rivet Member 
2007 28' Classic
Ivanhoe
, Virginia
Join Date: Aug 2015
Posts: 37
|
Term is determined by amount financed, used to be anything over 25k would finance for 15 Yrs. Take the term Erie off interest as second home, pay off after 7-8 years when payment becomes mostly principal.
__________________
|
|
|
10-15-2016, 01:19 PM
|
#7
|
Rivet Master 
2014 20' Flying Cloud
Eugene (Tracktown USA)
, Oregon
Join Date: Mar 2014
Posts: 1,148
|
Quote:
Originally Posted by phann
I agree with djarret. Take the 15 year financing, make one principle plus interest payment per month, and an additional monthly principal-only payment of the same amount (or less, when convenient). You will have it paid off within 7 years.
|
I agree with djarret & phann. You can also simply make the payment that amortizes (google amortization calculator) it for 8 years or any term you wish, assuming it is simple interest and you need to confirm. Historically dealers/banks have used paper that front loads interest so an early payoff balance is a surprise. Google rule of 78's.
Also the dealer probably sells the paper to the bank and term may be part of the value of that paper. Also as awchief said....check around, especially credit unions.
Bob
__________________
|
|
|
10-15-2016, 01:35 PM
|
#8
|
Rivet Slave

2014 27' FB International
Green Cove Springs
, Florida
Join Date: Dec 2013
Posts: 4,047
|
Yep, TurboTax agrees that if you itemize and other deductions don't reduce / eliminate the value of your interest deduction by pushing you near or over the maximum deduction amount, mortgage interest deduction on an RV as second home is fine as long at it has sleeping, cooking and toilet facilities.
https://ttlc.intuit.com/questions/18...ct-my-mortgage
https://ttlc.intuit.com/questions/19...tax-deductible
https://ttlc.intuit.com/questions/29...d-property-tax (check the paragraph under "It's not equal")
Still seems a good idea to pay off the loan faster, even though that would reduce the interest you pay along with the associated potential deduction.
BTW, I'm no tax accountant - if your return is complex, get professional help. In any case, check & verify what I said above before you start spending money.
__________________
Rocinante is our 2014 International Signature 27FB
(Named for John Steinbeck's camper from "Travels With Charley")
|
|
|
10-15-2016, 03:40 PM
|
#9
|
Rivet Master 
2005 19' Safari
GLENDALE
, AZ
Join Date: Aug 2004
Posts: 2,447
|
Re: Rule of 78s
See links for explanation of "rule of 78s" pre-computed loan interest:
The "rule of 78s" is illegal in 16 states, but the others still allow loan issuers to take advantage of borrowers using this interest calculation method.
If loan interest is computed in this way, there is no savings in paying off a loan early.
__________________
|
|
|
10-15-2016, 04:34 PM
|
#10
|
4 Rivet Member 
2015 30' FB FC Bunk
2012 25' FB Flying Cloud
Golden
, Colorado
Join Date: Jun 2013
Posts: 412
|
Do the math and send in the payment to payoff on your desired schedule/time frame. There should not be a prepayment penalty, at least not any I have financed and paid off early.
Sent from my iPhone using Airstream Forums
__________________
2015 30' FC Bunk, Dual A/C, Full Awning, RV550, Sleep Number, ProPride, Nokian Rotiiva AT 15" Tires
2015 Chevrolet 2500HD 4WD Duramax/Allison LTZ Crew Cab Short Bed, Huper Optik, Bull Dog Spray In, Roll-N-Lock, Full Amsoil, Denali SoundBomb, Yakima
|
|
|
10-15-2016, 04:42 PM
|
#11
|
4 Rivet Member 
2008 19' Bambi
2012 23' Flying Cloud
Bandera
, Texas
Join Date: Jun 2012
Posts: 296
|
Buy it and pay it off early.
__________________
__________________
|
|
|
 |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
Search this Thread |
|
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|

Recent Discussions |
|
|
|
|
|
|
|
|
|
|
|