Financing & Loan Options for RV 5th Wheel

Honestly best to save up and pay caswh. Always better to earn interest than pay it. The only possible worse investment than an RV might be a time share or a boat. No offense intended. Just my take on this.

Credit Union! Not the dealership! Or HELOC!

RV loan interest rate ~3-4%, maybe lower.
National Average savings account rate <1%.
However, many people can invest at 7-10%+ annual rate of return. So borrowing "cheap money" at a lower rate than you can earn investing can be beneficial even if you have the cash. I don't have a problem with a loan on any depreciating asset. Justr make sure you understand the depreciation rate is similar to automobiles. I recommend loans at similar rates, say 10-20% down payment and <6yr loan payment schedules.

My advice is to shop rates on your own prior to discussing financing with the RV dealer. Many people have established relationships with specific banks already that often make the logistics of getting, paying, and closing a loan easier than some random bank.

Would it be better to get financing directly through the dealership or would it be better to deal with a broker to line up financing and then go to the dealership? My wife and I both have good credit and own our home located in Florida.

Your best bet is to research all your options: banks, broker, credit unions, on-line, and thru the dealer. I'm not in the OP's area, and didn't buy a 5th wheel, but I got a pretty good rate thru the dealer with Bank of the West after letting them know I would only be interested if they were competitive since I had excellent credit and other options.

Frankly, most of the financing sources I explored seemed more interested in long-term 10 or even 15-year loans with little or nothing down. I'm sure many dealers have links to similar deals, which undoubtedly pay a higher commission, but they may also have pretty good rates for those looking for shorter loans with larger down payments and lower interest rates, although they may not do as much to promote those loans.

You'll only know you're getting a good deal if you know what the alternatives are.

Loans are one of the easiest things there are to shop. Just compare terms (length of loan and interest rate). I would check with my bank, a local credit union, maybe an online source (such as Good Sam which uses Essex, which is a division of Bank of the West) and see what the dealer can offer. Take the best deal. The one thing people get a bit out of whack on is length of loan. Longer loans do have lower monthly payments, but doubling the loan term does not cut the payment in half. It is best to take the shortest term you can comfortably afford. You will build equity quicker and pay of the loan sooner. Bankrate.com has a bunch of financial calculators that can help you with your analysis.

NoVa RT wrote:

Would it be better to get financing directly through the dealership or would it be better to deal with a broker to line up financing and then go to the dealership? My wife and I both have good credit and own our home located in Florida.

Your best bet is to research all your options: banks, broker, credit unions, on-line, and thru the dealer. I'm not in the OP's area, and didn't buy a 5th wheel, but I got a pretty good rate thru the dealer with Bank of the West after letting them know I would only be interested if they were competitive since I had excellent credit and other options.

Frankly, most of the financing sources I explored seemed more interested in long-term 10 or even 15-year loans with little or nothing down. I'm sure many dealers have links to similar deals, which undoubtedly pay a higher commission, but they may also have pretty good rates for those looking for shorter loans with larger down payments and lower interest rates, although they may not do as much to promote those loans.

You'll only know you're getting a good deal if you know what the alternatives are.

Dealer participation in vehicle loans have pretty much gone the way of the Dodo bird. Dealers get a flat fee for placing the loans, and that fee is usually not based on rate or term. They push long terms because that gives the lowest payment (less likely the buyer is going to balk) and they push low down payments because people generally don't like to part with their money. They are just catering to the market.

Below is what I have found so far and will call most tomorrow - any good/bad feedback on the ones below?

I know it would be best to pay cash and I know the long term loans you end up paying more if you take the full term.

My plans would be to put as little down as allowed and take a long term and pay off earlier but enjoy the smaller monthly payment now (i know it may not be the best financial option but it is the one I have accepted to work best for me at this time)
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-Suncoast Fed Credit Union - https://www.suncoastcreditunion.com (my local bank)
-5.5 APR , 15 year max,
Present calendar year model and previous three calendar year models.
-Maximum term available only on present and one previous year model.
-Maximum of $100,000.00.
-Payment Example: 180 payments of $8.18 per $1,000 borrowed based upon a 5.50% APR.
-Not available for RVs being used as a primary residence.
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Alliant - http://www.alliantcreditunion.org/
-2.99 % 8 years term but other part of website says 20 year term options
-same day approval
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-Essex Credit - https://www.essexcredit.com/
-3.85 APR starting at for $50k plus models

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-Good Sam Finance Center - 800-444-1476, goodsamrvloans.com
-term up to 20 years on $50k plus models
-3.85 APR starting at for $50k plus models
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-Sun Trust Bank - 800-279-4824, suntrust.com (another local bank in my area)
-loans up to $54,600 for towable RV

It seems everytime someone asks about financing it isn't long before someone goes off about paying cash and don't finance. I don't see it as a option asked by the OP.

Why bother? :h

We've always had better luck with credit unions

Get all the rate info you can. The dealer will typically give you a better price on the RV if they do the financing (they get a kickback from the finance company). If the dealer can't match or beat your best rate offer, don't use the dealer.

We used our credit union the loan was setup as a 2nd home with a 15 year loan which got us low interest and payments and payed off in 6 years worked for us.