How Long to Finance?

GretaG · 07-16-2009, 05:22 PM

Hello, I am new to this website, and am currently looking to buy a late model used 17-23 foot Airstream. What is the typical loan period that one looks for? Do most people get a loan for 5 years? 7? How do you decide? What interest rates are currently being offered?

Many thanks, Greta

Dakota's Dad · 07-16-2009, 05:44 PM

WAY to many variables that no one on here can give good advice on, because the loan rate offered one person is not, will not, may not be the same as the others based on their credit history, employment, down payment, etc.

That said, everyone I know personally that has financed, went 10 years.

dlb435 · 07-16-2009, 06:09 PM

Just pay cash.

GretaG · 07-16-2009, 06:30 PM

Many thanks. I wish I had the cash and would of course prefer to do that!

RBolton · 07-16-2009, 08:52 PM

I would finance for the shortest period that still provides a payment level with which you are comfortable. The shorter term saves interest, may get you a better rate and allows you to build equity faster - this is good in the event you need to sell or want to trade up. Don't go so short though that the payment becomes difficult or keeps you from enjoying the trailer.

Aage · 07-16-2009, 08:57 PM

Quote:

Originally Posted by GretaG

Many thanks. I wish I had the cash and would of course prefer to do that!

Save up? I know, that's crazy talk...

Just can't imagine borrowing for a leisure thing. Personally, it would kill the enjoyment for me, but that's just me, I guess.

Ganaraska · 07-16-2009, 10:47 PM

In this day of low interest rates (when you put money in the bank) you would be shocked at how much they charge on an RV loan.

Would suppose anyone would pick the highest payment they can afford and pay the loan off as fast as possible.

I also agree with those who think it is crazy to finance a play toy but I know not everyone feels the same way.

spenfolder · 07-17-2009, 12:38 AM

My QuikSilver Bambi is not my play toy, it's my sanity! I went to my credit union, got 4.99% on 10 years, and I can write off the interest as a second home mortgage.

summerkid · 07-17-2009, 02:08 AM

I would NOT borrow money in this economic climate. I agree that, now that you have settled on your goal, save up the money for it, Greta.

And welcome to the forums!

bob34787 · 07-17-2009, 04:04 AM

Quote:

Originally Posted by dlb435

Just pay cash.

Thats what I did, I was getting 2% on a CD and the best rv rate i could get was 6%

dlb435 · 07-17-2009, 07:38 AM

I really was serious about the cash payment. We have never financed a trailer. This is a toy, not a need. Get some cash together and buy what you can afford. The great thing about an AS is that you can get an old one and it's still a great camper. Fix it up over time and keep it all cash.

GretaG · 07-17-2009, 08:23 AM

I see I have struck a nerve. It's been a very useful discussion for me, and I appreciate it.

76sovereign · 07-17-2009, 09:46 AM

My Dad said to always get the lowest payment possible as long as there is no penalty for paying it off early. Then pay more than the payment every month. That way if you get in a bind you will have a low payment to fall back on.

JStanley · 07-17-2009, 10:05 AM

For me, I forgo financing non-essential depreciating assets—especially one I would use seasonally for pleasure.
BUT, I do buy used to limit risks and to learn about it. Take your time, save for a large down payment with a small loan.
In the mean time do the due diligence stuff, research the options and study all you can before jumping in. There is lots of information out there and many good buys. Good Luck.