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Bluto · 03-28-2009, 11:25 AM

Quote:

Originally Posted by 1cericks1

I finacned a new one in July 08 for 7.5%. They told me the rate would go up if I put down a deposit, something about a better rate if the total loan amount exceeded some threshold. So it ended up being 100% finance for a 15 year loan. Clearly I owe more than I could sell it for and probably will until year 13 or 14.

My thought process at the time was that with the interest deduction, if I could generate a 6% return or more on the money invested in the market, I'd end up better in the long run with the financing than paying cash. So far it's been a bad choice, but who knows what things will look like 10 years from now.

That is interesting. Can you tell me more about who did the financing on your unit? I want to see what they offer in todays market.

Gene · 03-28-2009, 12:24 PM

I originally financed ours in 2008 through our broker's bank (Schwab) and used a home equity loan on our house. The rate was around 4% (it started higher and kept dropping). Like 1cericks1, I didn't want to sell any stocks and could earn more keeping the stocks than I was paying in interest. We ended up paying off the line of credit because Schwab wanted me to get a new title policy when I added 5 acres to our land, but that has nothing to do with the principle of what we did to finance the trailer. Of course, loans were easy to get a year and more ago. If you have a brokerage account, usually there's a bank owned by the brokerage company and they may finance a trailer.

Mortgage rates are lower than they have been in at least 40 years, so the money is out there somewhere, perhaps from an online bank.

Certainly if Thor can lend $20 M to Camping World, they could set up their own financing unit like auto companies have done for years. If they want to sell RV's, they have to be creative and proactive. Financing can be a lucrative business. GMAC kept GM going for a long time.

Gene

1cericks1 · 03-28-2009, 01:02 PM

Quote:

Originally Posted by Bluto

That is interesting. Can you tell me more about who did the financing on your unit? I want to see what they offer in todays market.

Yeah it's with Citizens Automobile Finance. I have a pretty solid credit score. The dealer from Windish RV in Denver Colorado arranged it.

Bluto · 03-28-2009, 01:30 PM

Gene,
I'll give that a try. I never thought about the broker angle.

1cericks1,
Thanks for that info.

TROPHYJIM2 · 03-28-2009, 05:31 PM

Thor GE financed mine at 7.25. Again like the poster above indicated...the interest is deductable so essentually as a second home deduction you are paying close to nothing in interest. Just finished my income tax return last week..
..seeing is believing

Jim

Minnie's Mate · 03-28-2009, 06:08 PM

We financed through our dealer. The loan is with Citizens Auto Financing.

BTW, use the second home interest deduction while you can, but don't count on it. The dips#!ts the stupid liberals (and I'm talking to anybody that voted for 'em) put in office last November are already talking about phasing out the interest deduction on first home mortgages. After hearing Mr. Obama's press conference last week when he talked about what he has to do to pay for all the crap he's already signed, I expect the second home mortgage interest deduction to go the way of the doe-doe quicker than you can say IRS.

Gene · 03-28-2009, 07:14 PM

But those mortgage deductions are so people can buy houses and, therefore, are social engineering. But what do I know, I'm just one of 69,456,897 stupid Americans.

Gene

VIKING · 03-28-2009, 07:54 PM

Somebody has been spending way too much time at Disney!

Thanks for the amazing insight.

Keep on posting, I'm learning things I didn't know I didn't want to know.

Now, back to the subject at hand...

PLEASE!

Minnie's Mate · 03-28-2009, 08:33 PM

I saw it coming. Sorry, if you didn't.

Back to the issue at hand. It is a conundrum. We tax payers gave a no strings attached (stupid mistake by my side of the aisle) bailout to the banking industry so that credit would start flowing. So far, it didn't...oh yeah. It started enough in early January under the previous administration (mentioned only because someone would take credit for it on behalf of the new administration that didn't come into office until the end of Jan.) for January to show an increase in home sales. There was an increase in home sales in February also...before the stimulus plan was passed. All of the sudden, we hear that the recession has hit bottom and the stock market starts to climb. Hopefully all the good news we are hearing will get consumer credit rates low...lower than 13%. We should know something about March in the next week or so. So keep checking and check other sources.

RV's are luxury items and as such carry higher interest rates than homes and cars so that may attribute the high interest rates because the banks know that the job market is still in the tank and jobs will still be rocky for several months to come...probably 'till mid-May at least. So they realize that if something has to fall by the way side, it will be luxuries like RV's. The rates might close in on mortgage rates in another month or so.

Maybe you should try a trip to Disney. It helps keep me focused on reality.

altamont · 03-28-2009, 08:48 PM

Friend of mine just bought a $27k SOB and is paying 8.99%. Perfect credit and a controller of a billion dollar company. I say he knows where to borrow. Me, I got a 7%, 100% financing but that was 2 years ago.

53flyingcloud · 03-28-2009, 09:17 PM

Quote:

Originally Posted by altamont

Friend of mine just bought a $27k SOB and is paying 8.99%. Perfect credit and a controller of a billion dollar company. I say he knows where to borrow. Me, I got a 7%, 100% financing but that was 2 years ago.

Maybe, you should have spended more time talking with your friend and, enlight him...

ROBERT CROSS · 03-29-2009, 09:12 AM

Airstream and credit... our dealer used Thor, interest rates 6.25% in 2004.
After some on-line research, we decided to cash out early. Will be paying it off next month, yippie!!!!

Thor Credit Corporation - Irvine, California (CA) | Company Profile

**jcanavera** · 03-30-2009, 11:12 AM

Quote:

Originally Posted by ROBERT CROSS

Airstream and credit... our dealer used Thor, interest rates 6.25% in 2004.
After some on-line research, we decided to cash out early. Will be paying it off next month, yippie!!!!

Thor Credit Corporation - Irvine, California (CA) | Company Profile

I wonder if Thor got out of the finance side? I got a letter from them that my payment is now going to GE....although it is being mailed to the same address.

Jack

Gene · 03-30-2009, 11:30 AM

Quote:

Originally Posted by TROPHYJIM2

Thor GE financed mine at 7.25.

Jim

Jack, Jim's post may be a clue. Perhaps GE Credit took over the Thor Credit facility, or it was really a GE facility, or maybe GE Credit is administering the loan. The usual transparency in the credit business.

Gene

ROBERT CROSS · 03-30-2009, 11:52 AM

Quote:

Originally Posted by jcanavera

I wonder if Thor got out of the finance side? I got a letter from them that my payment is now going to GE....although it is being mailed to the same address.

Jack

I wouldn't be at all surprised if they have given up the financials.

That letter was one of the reasons we decided to pay out early.
Nowadays less debt is more peace of mind.

HowieE · 03-30-2009, 03:37 PM

Quote:

Originally Posted by gc24

The credit union wasen't much better as I wrote before. Essex requires 10% down.

The only person that should be financing 100% of the purchase of anything right now is Warren Buffet and he would only do it as a gift to the system.

It is bad enough to consider financing a depreciating asset of any kind in normal times but in this climate it is suicide.

What the bank is telling you is please go away.

Minnie's Mate · 03-30-2009, 10:31 PM

Quote:

Originally Posted by HowieE

The only person that should be financing 100% of the purchase of anything right now is Warren Buffet and he would only do it as a gift to the system.

It is bad enough to consider financing a depreciating asset of any kind in normal times but in this climate it is suicide.

I don't know. Right now you can get 0% from some of the new car dealers/manufacturers. Seems to me if you can use someone else's money for free you should use all you can. Provided you can pay it back. Even with today's passbook rates, you come out ahead by leaving your money in the bank and using their money to buy the car with, and if you get laid off or something, then take the money out of your account and pay it off or make payments out of the passbook until you get back on your feet.

ROBERT CROSS · 03-30-2009, 11:41 PM

Quote:

Originally Posted by Minnie's Mate

I don't know. Right now you can get 0% from some of the new car dealers/manufacturers. Seems to me if you can use someone else's money for free you should use all you can. Provided you can pay it back. Even with today's passbook rates, you come out ahead by leaving your money in the bank and using their money to buy the car with, and if you get laid off or something, then take the money out of your account and pay it off or make payments out of the passbook until you get back on your feet.

Hit the rivet there, 0% and great deals, now is the time for that new TV if ya can swing it, 'cept maybe Ram.

Could never understand a corporation that names it's trucks with an oxymoron.

53flyingcloud · 03-31-2009, 04:15 AM

Quote:

Originally Posted by ROBERT CROSS

Hit the rivet there, 0% and great deals, now is the time for that new TV if ya can swing it, 'cept maybe Ram.

Could never understand a corporation that names it's trucks with an oxymoron.

Oh, I get it..
GMC is Gov't Motors Corp..

xonvldz · 03-31-2009, 05:44 AM

made an inquiry 2 days ago to an rv/ boat financing broker in connecticut.what has changed from 2 yrs ago is the credit score bar.760 plus score they can get me 6.99%.760 score is the minimum to obtain this rate.not interested in buying ,just curious on what is happening in the market.