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Old 02-23-2020, 05:33 PM   #1
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2019 25' Flying Cloud
Oceanside , California
Join Date: Aug 2018
Posts: 304
Financing

Hi,

Sorry to keep adding threads but they always twist away from intention. I'd like to talk financing.

My goal is to borrow ~$68K pay off in 6-10 years. Finance for 20 so I can have lower mandatory monthly and take more time to enjoy it!

With 10% down I didn't get a good rate via the dealer. BofA and another 5.99 and 5.75%. My credit score is ~780 and debt to income ratio VG IMO. I make 12x more per month than I owe. All my bills are paid with one paycheck.Self employed for most part of 30 years. Current business for 5.

Looking at Goodsam they have down to 5% for 240 month payments....but not sure if that is accurate.

The latest credit check gave me 3 for the past year; phone, cable and now the AS. So I don't want to hammer my score down for no good reason.

Anyone have better luck when shopping around for better rates?

Why are full timer rates cheaper? 4.55% on Goodsam...

Thanks!
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Old 02-24-2020, 07:26 AM   #2
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2018 30' Classic
Thousand Oaks , California
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Shop around with credit unions as well. Unfortunately when I purchased I just took the rate they gave me and paid off in full a month later when I left my job and cashed out on my deferred compensation.

If I had to finance it, I may look at taking out a home equity line of credit or even wait for a couple more years. You can save all the money you intend on paying towards your monthly airstream purchase and just bank it. You can come to the table with a greater down payment at that point.

RVs will always fetch a greater APR because they are completely unnecessary for one to live much like a motorcycle or boat. It would be easy for you to drive off in the sunset and never make a payment on it as well, which is why they want to fetch a higher %

The good thing is that they finance it like a house, so your payments are over something like 20 years and youíre really talking about an extra few bucks a month. It may not be worth all the time spent shopping around if you plan on paying down the principal quickly anyways?

As I said, Iím in the camp of saving and coming to the table with a larger payment though.

Follow me on Instagram or reach out there with questions for quick dialogue if youíd like. @airstreamvagabond
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Old 02-24-2020, 07:53 AM   #3
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May I suggest.

Buy a used trailer you can afford to purchase with "CASH" off a private seller. If you don't (as you know) you will be paying interest on something that is going down in value everyday you own it.

Credit maybe good, but "CASH" is better. Buy used (let someone else take the first couple year hit on value).

Life and wealth can change real fast, it's good to know that your toys are paid for in full.

Though a friend once said, "It's not the man that dies with the most toys, but the man that dies with the most toys "that are not paid for" who wins".
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Old 02-24-2020, 09:26 AM   #4
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When I bought my 2019 I financed through Bank of America with a credit score of 844 for 5.75%
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Old 02-24-2020, 10:39 AM   #5
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Upland , California
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I went to my Bank of America branch and was told the donít finance RVs; tried to get me interested in a HELOC instead. Were your BofA loans brokered through the dealership?
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Old 02-24-2020, 11:54 AM   #6
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Longer term loans can give you lower monthly payments but the percentage of those payments that is interest (not principal) is much higher than with shorter term loans which would have higher monthly payments. A $68K loan w/10% down at 5.9% is a monthly payment of about $435 (not including taxes and insurance), of which almost 65-70% of the monthly payments over the first 5 years are just interest - you would still owe a ton on principal at that point. Do a 10 year loan with same stats and your payments go to $675/mo, of which about 40-44% is for interest - meaning you would own more of the trailer at the end of those 5 years with a smaller payment to get out of the loan altogether.

Nothing is free. The lower payments come at your cost of equity - in a depreciating asset to boot.

Google mortgage amortization calculators for the specifics. Also, if you google ďbest RV loan rateĒ youíll see lending tree has a 3.99% for up to 180 months - Iím sure there are lots of caveats in there so read the fine print carefully...

Good luck.
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Old 02-24-2020, 12:01 PM   #7
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2017 30' Classic
Carlisle , Pennsylvania
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Hi

Most RV's depreciate more quickly than an AS does. That said, even an AS drops quite a bit as the years go by. That factors into the cost of financing. Credit score is *part* of what they look at for a loan, things like depreciation are on a long list of other things they look at ....

Finance or not is very much up to you. Life is not a predictable thing. Five years from now you might have a pile saved up and no longer be able to travel .... stuff happens.

Bob
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