Interest rates

Discussion in 'Beginning RVing' started by Gellins, Aug 23, 2006.

  1. Gellins

    Gellins New Member

    We are still trying to figure out if a fifth wheel or a motor coach would be the perfect fit for our family. Could someone give me a general idea about interest rates on financing? I realize there are different circumstances that would effect this, I just want a general idea. One dealer said 5% and another said 8%. That is a big difference.
    Thanks!
     
  2. hertig

    hertig Senior Member

    Re: Interest rates

    Depends on many factors. Even with good credit, I doubt you'll find 5% unless the dealer subsidizes you. With good credit, you may be able to find a rate in the 6.5% range, but my information may be out of date.
     
  3. Grandview Trailer Sa

    Grandview Trailer Sa Senior Member

    Re: Interest rates

    My company bases it on your credit history/score and the amout you are financing. 10-25K the average is 8.25. 25-75K the average is 7.75. These have been pretty steady for awhile, but I hear rates for mortages are coming down, maybe these will too.
     
  4. Gellins

    Gellins New Member

    RE: Interest rates

    Thanks for the help. We have excellent credit, don't owe on anything. We also own three houses so maybe some kind of equity loan might be the way to go.
    I'm thinking the amount will be around $75,000 if we go with a fifth wheel we plan to pay cash for the truck to pull it, or around $150,000 for a coach.
    thanks again!
     
  5. Kirk

    Kirk Senior Member

    Re: Interest rates

    You should shop loans in the same way that you would shop for any other item. If you finance through a dealer, it is quite normal for the dealer to get a "piece of the action" for any loans that they write. There is nothing wrong with that, but it can drive up the cost of the loan. I would check with the financial institutions where you are already known and have done business. Most likely, if they write RV loans they will probably beat the other companies. You might be surprised by the number of buyers who just accept whatever loan the dealer offers. While you are shopping, check with some of the companies that advertise in the RV magazines as well. In this way you can quickly know just what rate is proper.
     
  6. hertig

    hertig Senior Member

    Re: Interest rates

    I found the banks to have poor rates and short terms, and the Credit Unions to be even worse (nearly twice the 'best' rate). The dealer actually did pretty well by me; shopping the internet/magazines I could have done at best a 1/2 percent better. Wish I had done my homework, but it didn't kill me (minor injury only :) ).
     
  7. Grandview Trailer Sa

    Grandview Trailer Sa Senior Member

    Re: Interest rates

    One thing I did not say earlier. Up to 25K the term is 12 years. The higher amounts are 15 years. It is simple interest and no pre-payment penalty after 90 days.
     

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