Financing an RV

JAXFL wrote:
The dealer never pays off your trade in. It is added back to the NEW item that you buy. If your trade was paid for then the money that they would give you for it would reduce your NEW item, but being you owe, it really increases it.

The 2 lines you are missing is
Vehicle Price - $74,547.00
Options - N/A
Retail Discount - $9,657.00
Customer Price - $64,890.00
Trade Allowance - $18,000
Trade Difference - $46,890
"Pay off SUV - $17,500"
"Total financed before interest..... $64,390"


Estimates Payment Option
$6,000 Down - 180 Months - APR 5.99% - Payment $524.33

NOTE-- TOTAL WITH INTEREST....... $100,379.40

That sounds about right, you should not be trading in that SUV that you are upside down on, should just keep it for a while till more is paid off than sell it on your own, also you need at least $10,000 down to bring those payments down more.

This is why the OPer is upside down on his SUV, little to nothing down and max years on loan..

Get that debt monkey off your back and life will be easier.

I got 240 months on my Newmar when I purchased it. The interest at that time was 6.75%. When I tried to ask Bank of the West for a refi to lower payments they said no. I paid it off so they lost out on everything. I thought with 25% down I would never be underwater on it. The recession changed all of that for me.

JAXFL wrote:
The dealer never pays off your trade in. It is added back to the NEW item that you buy. If your trade was paid for then the money that they would give you for it would reduce your NEW item, but being you owe, it really increases it.

The 2 lines you are missing is
Vehicle Price - $74,547.00
Options - N/A
Retail Discount - $9,657.00
Customer Price - $64,890.00
Trade Allowance - $18,000
Trade Difference - $46,890
"Pay off SUV - $17,500"
"Total financed before interest..... $64,390"


Estimates Payment Option
$6,000 Down - 180 Months - APR 5.99% - Payment $524.33

NOTE-- TOTAL WITH INTEREST....... $100,379.40

OUCH!

Keep in mind you are only getting $500 for your SUV Trade-in, and 180 months is way to long to finance that amount.

"And to add further, if you have to finance an RV, you would be best to not do that."

"If you are upside down on the SUV, and make this sort of purchase, you are really going to be upside down in a year or so on that purchase. Bad move in my humble opinion."

x2 or 3 or whatever...if at all possible, don't finance a depreciating asset, particularly if one is contributing an already depreciated asset (the SUV) to purchase the 2nd depreciating asset.

4X4Dodger wrote:


This is a losing deal for you for sure.

I agree with many who have spelled it out more in detail already.

IMO if you havnt signed...walk away...fast.

Another vote for - what 4x4 (and others) said.

BTW - don't walk.......run!..:(

.

If you are upside down on the SUV, and make this sort of purchase, you are really going to be upside down in a year or so on that purchase. Bad move in my humble opinion.

I hesitate to suggest this, as most think it is a very bad idea....but if you have built up good equity in your house, you might look at a refinance of that to give you the money to buy the RV with cash. In our case, two years ago, we had 6 yrs left on the mortgage, at 4.8%. Doing a refi got us our fifth wheel and an 8 year mortgage at 2% (!!!) So monthly house payments only went up a little, and it's not very much longer till the payoff of both.
Current interest rates aren't that good, but they are still very low. It would at least be worth the time to crunch the numbers to see if you can make it work out to avoid the long repayment period that quickly puts you massively upside down in your value and equates to huge amounts of interest payments.

Yeah I don't like the way they do it now...they use these numbers to try and confuse and make you think you are paying less than you really are. What you are paying is not changing ($65k)...

If I read the OP, the SUV is 5k upside down, and this is a 15 year loan. You are plopping $6000 down.

First, I wonder about selling the SUV separately at the cost of the loan, and paying the difference so you are out from under it. This will make life a tad simpler.

Second, after jettisoning the SUV, can you wait a bit and go for a bigger down payment? This way, you can either keep the 15 year term and go for lower payments, or go for 10 years and have the interest rate cut down by a good amount.

I am almost exactly in the OP's shoes. I am looking to buy a class "B" motorhome, and -can- buy one now. However, since I have no vacation time coming up for a while, and the "B" market is going through a lot of changes due to the new vans, I'm biding my time. I want to have my existing rig either completely paid off or to the point where I can sell it for 75% of NADA low and walk away. This way, at -worst- the rig gives me $0, and isn't a further expense.

I also am biding my time because I want to have at least 20% down. For a rig like the OP's, I'd like to have $14k on the table. This is because the economy is uncertain, and if I lose my job, I can fire-sale the RV for a fraction of what it is worth and walk away.

However, everyone is different, and it might be better to start trips and enjoying the open road sooner rather than later.

The dealer never pays off your trade in. It is added back to the NEW item that you buy. If your trade was paid for then the money that they would give you for it would reduce your NEW item, but being you owe, it really increases it.

The 2 lines you are missing is
Vehicle Price - $74,547.00
Options - N/A
Retail Discount - $9,657.00
Customer Price - $64,890.00
Trade Allowance - $18,000
Trade Difference - $46,890
"Pay off SUV - $17,500"
"Total financed before interest..... $64,390"


Estimates Payment Option
$6,000 Down - 180 Months - APR 5.99% - Payment $524.33

NOTE-- TOTAL WITH INTEREST....... $100,379.40