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TXstream · 03-03-2009, 06:20 PM

Howdy from Texas! I am currently renting an amazing 25' SS International 2005 from a friend while working out of town, and have been given the option to purchase it. I plan to use it as my sole residence, as I move around quite a bit for work and keeping up with an empty apartment just doesn't seem financially responsible. That, and I love living in the Airstream!

How do I best go about financing this venture? I know the timing is not so great, and securing a loan might be more difficult that I realize. I've looked into Used RV loans from banks online, but the rates seem high (around 10%). Since this will be my residence, is there another (cheaper) way to finance it? Any and all suggestions welcome. Thanks!

cosmotini · 03-03-2009, 07:52 PM

I don't know if this would work but talk to a local rv dealer and see if they will run the financing through one of their sources. The rate may be better and they will get their commision. Also, the interest paid should be a tax deduction for you since it's considered a residence. Talk to an accountant or attorney about that.

Good luck.

gc24 · 03-09-2009, 04:54 PM

Yea, let me know if that works as i would like to finance an 06'. Anyone know of any other sources to finanace? I called 2 Rv dealers and they don't finance unless you purchase thtough them.

53flyingcloud · 03-09-2009, 05:59 PM

Here's a unique and, different twist:
1. Have the person who owns the Airstream you wish to purchase, list the unit with the RV dealer as a Consignment unit. You will need to find a RV Dealer who is willing to work with you. Almost any of them will gladly handle a Consignment transaction.
2. You will need to fund the cost yourself (typically abt 500$) of the Consignment . [consider it a finder's fee..]
3. The RV dealer will handle all of the paper work, title work, etc for his percentage.
You end up with your desired Airstream and, the seller gets his money.
Talk to an F&I manager at a RV dealership first..
Good Luck..

gc24 · 03-09-2009, 06:44 PM

Thanks, I will present that to the sellers.

Foiled Again · 03-09-2009, 07:01 PM

10% isn't good, but it's not that bad either, especially if your payments are HIGH enough for you to itemize your deductions. Look at the total cost to live - monthly payments, plus campground charges - and if that amount is less than a semi-decent apartment... well go for it.

DO try to pay off the loan early, or at least use a substantial portion of your savings to build a bank "pay it off" savings account. That way you're prepared for whatever happens.

You didn't mention what your future employment prospects look like. We all have to worry about the economy - and getting pay cuts or losing our jobs - but with an Airstream, your packing time to go to a new job is about an hour or two - and that includes checking the air pressure in the trailer tires.

Paula

Ganaraska · 03-09-2009, 07:27 PM

Money is easy to borrow and rates are low, surprisingly enough. Why don't you talk to your bank or credit union? They will loan you the money for less than 10%. Way less than any finance company that works thru trailer dealers or car dealers that's for sure.

If you do not have a relationship with a bank you should talk to 2 or 3 of them and compare rates.

"Consumers and business owners can sometimes find a loan or credit card with an interest rate that is below the current Prime Rate. Lenders will sometimes offer below-Prime-Rate loans to highly qualified customers as a way of generating business. Furthermore, below-Prime-Rate loans are relatively common when the loan product in question is secured, as is the case with home equity loans, home equity lines of credit and car loans."

The prime rate right now is 3.25%. So it should be possible to get a loan below that, secured by a mortgage on the trailer, unless your credit rating totally sucks.

By the way DO NOT tell them you plan to live in the trailer. Give them your apartment address. If you are going to full time you should arrange for a permanent address or mail drop.

Bird's Nest · 03-09-2009, 08:56 PM

In our state, tax must be collected on consigned vehicles. Purchasing from an individual is tax free. I would check the rules in your state as this could increase the price of the unit significantly.

TXstream · 03-09-2009, 10:36 PM

Thanks! Those are all great tips, I will continue to look around and talk to a couple banks to see what the best rate I can get is. Can I get any type of loan or does it have to be specifically an "RV" loan? The only other major purchase I've made and needed a loan was for a car, I have no home mortgage and my credit is good.

I do have a little bit of time to figure it out, as my friend has agreed to hold the Airstream for me until I can secure financing. It was originally purchased in Texas, also where I live, but the seller is currently residing in California, in so I will have to check the tax laws.

I work in TV and film on a project to project basis, which can be as short as one week to as long as over six months, sometimes at home and sometimes on location in another city, like now. The job outlook is okay, it is better in other states right now but that could change as Texas will hopefully soon pass tax incentives to get more films back here. If I do get the trailer, I'll be able to take my home with me on the road, which is part of the appeal!