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01-27-2014, 10:01 PM
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#1
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Rivet Master
2020 25' Flying Cloud
Atlanta
, Georgia
Join Date: Jan 2014
Posts: 533
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Really? REALLY? (financing a used Airstream)
We found the perfect Airstream. Lightly used. Beautiful condition. The only problem is ... the credit unions and banks "don't finance RVs" (who wants to finance an RV? I want to finance an Airstream!). Our principal bank quoted us a rate of over 10% for 15 years. We have excellent credit, so this is f******** absurd! How can it be that these things retain their value so well and yet no one will finance them at reasonable rates? I've been around lending for decades, so I understand underwriting-- but these would seem to be a good risk. I don't get it.
Anyway ... any ideas on finding sources?
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01-27-2014, 10:21 PM
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#2
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3 Rivet Member
2006 34' Classic S/O
Lakewood
, New Jersey
Join Date: Dec 2007
Posts: 178
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Quote:
Originally Posted by Belbein
We found the perfect Airstream. Lightly used. Beautiful condition. The only problem is ... the credit unions and banks "don't finance RVs" (who wants to finance an RV? I want to finance an Airstream!). Our principal bank quoted us a rate of over 10% for 15 years. We have excellent credit, so this is f******** absurd! How can it be that these things retain their value so well and yet no one will finance them at reasonable rates? I've been around lending for decades, so I understand underwriting-- but these would seem to be a good risk. I don't get it. Anyway ... any ideas on finding sources?
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I would check with Good Sam Club they advertise low rates. I get lots of emails from KOA advertising low rates too.
Regards,
Reganzo
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01-27-2014, 10:50 PM
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#3
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"Tinbad ... the Trailer"
1971 25' Tradewind
1965 26' Overlander
Ferndale
, Washington
Join Date: Mar 2011
Posts: 356
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It is precisely that it is an Airstream that they balk.
In the world of insurance risk, AS's are a "luxury item"
compared to most other RV's. Financing "shares the risk" between you
and the lender. It's way better if you pay cash....I use Liberty Mutual.
I once tried to get insurance on a Donzi speed boat...high end...fast. (paid cash)
I have a captains license for big ships but the insurance agent would'ent
even insure me or the boat.
They shy away from fast, expensive and exotic "things" unless you pay up front.
Never did put the Donzi in the water and my AS lives on blocks in a barn. So I just go and compose music in it. It's my little luxury.
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01-27-2014, 11:00 PM
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#4
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Rivet Master
2015 25' FB Eddie Bauer
2013 25' FB Eddie Bauer
2012 20' Flying Cloud
Small Town
, *** Big Sky Country ***Western Montana
Join Date: Feb 2010
Posts: 2,860
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If you are not buying through a dealer investigate the possibility of the seller consigning it to a dealer for a flat fee and secure financing through them. That would beat the 10% !
__________________
2015 25' Eddie Bauer Int'l FBQ / 2023 Ford Lightning ER
2022 Ford F350 6.2 V-8; equalizer hitch + Shocker air hitch
Honda Eu3200; AIR# 44105; formerly WBCCI 2015.1
Terminal Aluminitis; 2-people w/ 3+ dogs
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01-28-2014, 04:31 AM
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#5
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Rivet Master
2006 25' Safari FB SE
Broadway
, North Carolina
Join Date: Mar 2007
Posts: 838
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10% seems a bit high for a secured loan but not out of line, I think, for a used travel trailer. Here are some things to consider.
- Buy from a dealer - they always have financing sources, and selling a loan is a profit item for them.
- An insurance agent. Many offer financing now and may be interested in getting your business for the insurance and the loan .
- If you own your car(s), refinance the car(s) and use the cash for the Airstream.
- Refinance the house or a second mortgage or line of credit on your house.
- Unsecured loan. If your credit is good, an unsecured line of credit might be 7%.
__________________
2006 Safari SE FB
2000 F150 4.2L (retired), 2011 F250 6.2L, 2010 ML550, 2000 Excursion 7.3L
Broadway, NC
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01-28-2014, 05:21 AM
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#6
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Rivet Master
2009 27' FB Flying Cloud
1982 31' International
1991 35' Airstream 350
Jay
, Oklahoma
Join Date: Oct 2006
Posts: 1,706
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Another option may be a second mortgage on one's home, or borrowing from one's 401K.
US Bank also offers RV loans. In fact, I believe they actually provide the "Good Sam" loans.
Regards,
JD
__________________
Jeff & Cindy
'09 27FB Flying Cloud;'82 31 International
'91 350 LE MH; '21 Interstate 24GT
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01-28-2014, 05:49 AM
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#7
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Rivet Master
2013 30' Classic
Greenwood
, Mississippi
Join Date: Oct 2012
Posts: 12,111
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That is exactly the reason we got a new one.
Borrowed the money online from Good Sam/Essex.
__________________
2013 Classic 30 Limited
2007 Silver Toyota Tundra Crew Max Limited 5.7 iForce
2006 Vivid Black Harley-Davidson Road King Classic
1999 Black Nissan Pathfinder LE
TAC #MS-10
WBCCI #1811, Region 6, Unit 56
Airforums #70955
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01-28-2014, 05:53 AM
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#8
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4 Rivet Member
2005 25' International CCD
Lilburn
, Georgia
Join Date: Dec 2011
Posts: 285
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Two years ago I found multiple sources for financing a used Airstream. Though it had to be less than either 5 or 7 years old (I don't remember). Bank of America financed ours. Did it all online.
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01-28-2014, 06:21 AM
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#9
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Rivet Master
Currently Looking...
Mantua
, Ohio
Join Date: Jul 2005
Posts: 7,062
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Never had a problem with financing through my credit union or a bank. Jim
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01-28-2014, 07:05 AM
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#10
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4 Rivet Member
2001 34' Limited
Tucson
, Arizona
Join Date: Jul 2012
Posts: 273
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I remember when we purchased ours. We went through our credit union. They offered financing for used travel trailers, but their valuations compared to current "real world" valuations were WAY off. (like about $10K off!)
We spoke with the lending officer and managed to talk him into a higher loan value through pictures and better descriptions of the Airstream.
Thinking back on it, I get it now. There are all types of airstreams in all sort of conditions out there. Some will take precious care of their beloved trailer, while others wont. Some (like me) live in a part of the country where 1 good hail storm and BAM! The bank just lost its ass. (knock on wood)
Financing on used Airstreams can be rough and usually involves bringing cash to the table, and more than you wanted to (or have!)
__________________
2013 Ram Power Wagon 2500 4X4 5.7 Hemi
2001 Airstream '34 Limited
Hensley Arrow
Fulltime in 2013 and LOVING it !!
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01-28-2014, 07:22 AM
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#11
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Rivet Master
1995 30' Excella
Bowie
, Maryland
Join Date: Apr 2005
Posts: 2,345
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My credit union financed it at 9.9%. I don't worry too much about the rate because (a) we weren't borrowing a lot of money, and (b) the interest can be deducted from your taxes as a second home (consult an accountant on this second point).
The biggest issue we thought we'd have was what truxpin said - the Kelley Blue Book prices for Airstreams are far lower than what they actually sell for. But the credit union used a different source for values that didn't have that issue.
__________________
1995 Airstream Classic 30' Excella 1000
2014 Ram 2500 Crew Cab with Cummins 6.7L Diesel
Sold but not forgotten: 1991 Airstream B190
Sold: 2006 F-250 6.0L Powerstroke Supercab
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01-28-2014, 07:28 AM
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#12
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Rivet Master
1984 34' International
Toronto
, Ontario
Join Date: Jul 2012
Posts: 1,499
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How about a line of credit? Not sure if this product exists in the US - we've got a line of credit linked to our house, at (currently) just over 4%.
We can spend the money on anything we wish, should we wish to.
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01-28-2014, 09:59 AM
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#13
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Peapod
1985 31' Excella
Dade City
, Florida
Join Date: Jun 2010
Posts: 126
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insuring it can be interesting too. Come back to the forum if you need help with that.
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01-28-2014, 10:03 AM
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#14
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4 Rivet Member
Central Florida
, Florida
Join Date: Feb 2005
Posts: 455
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It is extremely difficult to finance any RV over ten years old including a Prevost.
Wells Fargo, US Bank has financed RV's in the past. I also second Essex Credit.
__________________
Dave
2008 Classic 34
Dodge Ram 2500 Crew Cab CTD
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01-28-2014, 07:14 PM
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#15
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Rivet Master
2020 25' Flying Cloud
Atlanta
, Georgia
Join Date: Jan 2014
Posts: 533
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Well, not no mo'
Quote:
Originally Posted by zigzagguzzi
Never had a problem with financing through my credit union or a bank. Jim
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I figured that we wouldn't have any problem, because that was my experience with cars and boats. But it's not your father's lending world any more. Major banks--including one mentioned above--no longer loan on RVs. Nor do our credit unions. I don't know why they don't want the business ... I mean, maybe for a POS camping trailer that declines precipitously in value I get it, but not for an Airstream. We only found one major bank that would loan on an RV, and their interest rate was outrageous.
The "Good Sam" lead was a good one. Thanks. Though ... I tried to apply on line today and got into computer hell when their database didn't recognize any permutation of "Airstream" "Sport" "22" and "FB" ... but I'll just call them tomorrow.
Thanks for all the input, everyone.
My next complaint will be about transport charges. (Coming soon to a "Dollars and Cents" forum near you.)
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01-28-2014, 08:12 PM
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#16
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Rivet Master
1964 17' Bambi II
1961 24' Tradewind
Strasburg
, Pennsylvania
Join Date: Mar 2010
Posts: 917
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Credit is a joke...do as our grandparents did. Pay cash. If you can't afford it, you can't afford it.
I am not rich- I paid $1000 for my Airstream and I'm restoring it myself. I would never put my mortgage up against a loan for a camping trailer. I own all of my cars (all used) and the only debt I have is my mortgage.
Life is simpler when you don't owe people...
__________________
"The difference between vintage and retro is that vintage is honestly old and cool. Retro tries to be but isn't."
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01-28-2014, 08:26 PM
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#17
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Rivet Master
2006 25' Safari FB SE
Broadway
, North Carolina
Join Date: Mar 2007
Posts: 838
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Quote:
Originally Posted by PA BAMBI II
Pay cash. If you can't afford it, you can't afford it.
Life is simpler when you don't owe people...
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I do hope you run for Congress!
__________________
2006 Safari SE FB
2000 F150 4.2L (retired), 2011 F250 6.2L, 2010 ML550, 2000 Excursion 7.3L
Broadway, NC
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01-29-2014, 11:50 AM
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#18
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Rivet Master
1995 30' Excella
Bowie
, Maryland
Join Date: Apr 2005
Posts: 2,345
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Quote:
Originally Posted by PA BAMBI II
I don't understand why anyone would choose to be in debt to anyone else. "The borrower is slave to the lender."
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There's no need to judge how others choose to live.
If you can't usefully contribute to a topic, there's no need to respond.
__________________
1995 Airstream Classic 30' Excella 1000
2014 Ram 2500 Crew Cab with Cummins 6.7L Diesel
Sold but not forgotten: 1991 Airstream B190
Sold: 2006 F-250 6.0L Powerstroke Supercab
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01-29-2014, 11:53 AM
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#19
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Rivet Master
1964 17' Bambi II
1961 24' Tradewind
Strasburg
, Pennsylvania
Join Date: Mar 2010
Posts: 917
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Quote:
Originally Posted by Skater
There's no need to judge how others choose to live.
If you can't usefully contribute to a topic, there's no need to respond.
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Apologies- I deleted my own message.
__________________
"The difference between vintage and retro is that vintage is honestly old and cool. Retro tries to be but isn't."
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01-29-2014, 12:36 PM
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#20
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Rivet Master
1995 30' Excella
Bowie
, Maryland
Join Date: Apr 2005
Posts: 2,345
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Quote:
Originally Posted by PA BAMBI II
Apologies- I deleted my own message.
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Thanks.
__________________
1995 Airstream Classic 30' Excella 1000
2014 Ram 2500 Crew Cab with Cummins 6.7L Diesel
Sold but not forgotten: 1991 Airstream B190
Sold: 2006 F-250 6.0L Powerstroke Supercab
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