need to understand how finance calculation work
We want to buy a fifth wheel, and we need to trade a travel trailer that has no equity. Is there a step i can follow so i dont get taken advantage of or tricked into a bad deal?
Forum Discussion
How good is your credit / how much money are you putting down?
In my opinion there is no "good deal" here because you need them to roll the payoff of your current trailer into the purchase of the new fifth wheel - you don't have a lot of room to negotiate.
It looks like you are going to be immediately underwater on the new fifth wheel and the finance companies won't like the amount of risk so your cost of funds is going to be high. What interest rate did they tell you?
The answer you don't want to hear is
1. Sell the trailer yourself for as close to what you owe as possible and pay off the loan.
2. Buy a couple year old 5er that has already taken the big depreciation hit.
You also don't mention what your TV looks like. $80k for a 5er means it's a big un. You already have a 1 ton dually pickup to haul it with?
In my opinion there is no "good deal" here because you need them to roll the payoff of your current trailer into the purchase of the new fifth wheel - you don't have a lot of room to negotiate.
It looks like you are going to be immediately underwater on the new fifth wheel and the finance companies won't like the amount of risk so your cost of funds is going to be high. What interest rate did they tell you?
The answer you don't want to hear is
1. Sell the trailer yourself for as close to what you owe as possible and pay off the loan.
2. Buy a couple year old 5er that has already taken the big depreciation hit.
You also don't mention what your TV looks like. $80k for a 5er means it's a big un. You already have a 1 ton dually pickup to haul it with?
