Originally Posted by s.s.sloan
Hello Airstreamers! We are in the works of purchasing my parents Airstream motorhome. Because it's an '87 the local banks want only three years or so on their terms and it's making the payment higher than we are comfortable with. I see that Good Sam has even better rates than the local RV dealer I visited with and will go long term. Anyone have experience or know anything good/bad about their financing?
Yep, I've financed with them...rates were better than the local bank. This was back in 2001 when I bought my new Safari. I checked again when I financed the Classic in 2004. Thor rates were better than Good Sam.
Banks set terms and rates based on their experience with autos. They tend to look at value and potential of the need to sell the vehicle if you go into default. A lot of the extended term RV loans really can get you upside down. Meaning that if they are forced to reposess down the line, you may owe more than what the RV is worth. I spend 25 years in the banking industry and at the time years ago, RV loans were safer than auto loans. Folks treated their RV's much like their homes and payments got higher priority if they got into a financial crunch. The RVIA has figures that support that thinking.
Now the other consideration for extended loans deals with your insurance. If your RV gets totaled, it's entirely possible to owe more than what your RV is worth. You find that some lenders are now selling an insurance product that will cover that gap if your RV is totaled. Other insurers sometimes are giving you replacement coverage on new RV's for the first 5 years with a payout equivalent to what you bought your RV for in years 6-10. I'm using that type of coverage on my Classic.