Gdetrailer wrote:
Why?
You do realize that $23K trailer in one year will be worth $11K on it's best day?
In 5 yrs maybe $6K
In 8 yrs maybe $3K
and if in the case of severe water damage absolutely nothing in a hurry.
It is a depreciating asset, loses value the second you sign the paper work.
8.49% interest for 12yrs on an asset which loses value every second you own it and is highway robbery.
So, a loan of 23K for 12 yrs at 8.49% means your "purchase" price once you get done paying the loan off is $36,747!!!
Interest paid is $13,747 which is one heck of a lot of interest and cost for a RV worth pretty much zero at the end of the 12yrs.
The payment is $255.18 per month for 12 yrs.
For 8 yrs the same loan and same interest you only pay $8,766 for a grand total cost of $31,766 and the loan payment would be $330.90..
I would highly recommend you play with an amortization calculator to see how loan length and interest rate affects how much interest you pay and what your payments will be..
AMORTIZATION CALCULATOR
That 8.49% interest is way too high, I would recommend you talk to your own local banks, sometimes you can also get slightly better interest rates when purchasing through the RV dealer.
According to US NEWS a credit score of 600 or higher should get you an average of 4.83% which is nearly half of what you are talking about!
Shop around.
There are no auto or truck loans written with 12 year terms. So that average rate would not apply to the terms quoted on a twelve year RV loan. Furthermore, RVs, boats and other luxury items often carry a higher rate than Autos or homes. After all, should someone get into financial straits, what are they most likely to stop paying on? Shelter and transportation? Not likely. Toys like boats and RVs? Probably
