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Old 03-27-2009, 12:55 PM   #1
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What The Heck!! Is This Right?

Trying to finance a used A/S and my Bank(Wells Fargo), got me a loan for the full amount for 15 years, 13.8%, and a payment of 409.00 a month. Doesn't seem right. For that deal, maybe I should buy a new one.
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Old 03-27-2009, 01:10 PM   #2
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In rough terms:

What you described suggests a $31,000 purchase price. Amortizing over 15 years means that in total, you pay $73,620. Interest, therefore, is $42,431.

A couple of things:

a) The interest rate is pretty high: 13.8% is pretty close to discount credit card rates. I'd shop around. If your credit is good, or if you can secure it with another asset, like home equity, then you should be able to get a loan in the 6 to 8% range.

b) Amortizing it over 15 years, even for an airstream, seems pretty extreme. I know they last longer than cars, but.... the longer your amortization period, the more you pay in interest.
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Old 03-27-2009, 01:15 PM   #3
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my bank submitted an application to me for owning an airstream.
they actually pay me $713 a month just so I can pull this thirty-one foot monster around.
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Old 03-27-2009, 01:27 PM   #4
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13.8% is insane. I agree rates of 6 to 8% maybe, tops with good credit, but keep in mind I'm talking before this financial meltdown when folks were willing to lend.
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Old 03-27-2009, 01:34 PM   #5
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Depending on your situation.....
In this economy, I wouldn't put my house up as collateral. Things sound tight if you are borrowing the whole loan amount with no money down.

If / when things got worse and you were forced to bail somewhere down the line, let 'em have the trailer and be done with it. Don't let them tie it to your principal place of residence and jeopardize that too.

Like musical chairs.... make sure you have a seat when the music stops !
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Old 03-27-2009, 02:01 PM   #6
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Here's my local credit union's loan rates right now - Loan Rates

I don't think I'd extend an RV loan out any further than I would a car loan. And then the amount of interest laid out brings out the Scotch in me if I go more than 2 years.

On such a long term loan the rule of 78 would leave you paying interest in front-loaded fashion. Sell the trailer even after 12 years and you'd find very little paid off on the principal; ie, you'd have not much to show for years of faithful payments.

Home equity interest is deductible but you don't need to go that route! Like interest on a 2nd home being deductible, interest on a simple loan is also deductible for a boat or RV where you can stay overnight if it has a galley and W.C.
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Old 03-27-2009, 03:22 PM   #7
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That is way too high. It should be basically the same as a car loan secured by a chattel mortgage. Not an unsecured loan.

There is plenty of money around to borrow if you have good credit.
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Old 03-27-2009, 03:54 PM   #8
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Yea, a credit union quoted me 8.75%, 5 year balloon, 10 year Amortizing and it was $390. a month. Don't own a home, so that's out. Guess I will dump the whole idea.
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Old 03-27-2009, 04:02 PM   #9
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I find this thread interesting, hope we hear more info on this subject. I too would buy another Airstream if the loan rates were better. I called Jackson Center last week to see if they had any solutions to help people who wanted to buy but need loans to do so. I had to leave a message because no one answered, but they never returned my call. Maybe they wish they could get some good interest rates themselves. I would think that as a company who wants to sell their products that they would at the very least be able to tell potential customers which loan institutions had good rates for Airstream loans and help their customers to buy more products.
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Old 03-27-2009, 04:04 PM   #10
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Yea, you would think so.
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Old 03-27-2009, 04:10 PM   #11
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Well. this is unbelievable, but as soon as I posted that last message # 9. I received a call from Jackson Center. They will have an area rep from Airstream call me to see if he can help.
I'll update this next week if I find out anything good.
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Old 03-27-2009, 04:26 PM   #12
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Yes, there used to be..

Quote:
Originally Posted by Bluto View Post
I find this thread interesting, hope we hear more info on this subject. I too would buy another Airstream if the loan rates were better. I called Jackson Center last week to see if they had any solutions to help people who wanted to buy but need loans to do so. I had to leave a message because no one answered, but they never returned my call. Maybe they wish they could get some good interest rates themselves. I would think that as a company who wants to sell their products that they would at the very least be able to tell potential customers which loan institutions had good rates for Airstream loans and help their customers to buy more products.
There was a time when Airstream did offered a RV loan program but, the requirements was extremely tight and, YOU had to have a outstanding credit rating. My experiences: There were only a very, very small handful of people who would fitted that profile.
Good Luck 2 you~ it can be done..
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Old 03-27-2009, 04:31 PM   #13
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Keep checking, with the economy like it is, you'd think they'd give a much lower interest loan just to keep some cash flow going.
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Old 03-27-2009, 04:47 PM   #14
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I applied with Essex Credit today, so let's see what they come up with on Monday.
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