Trying to finance a Travel Trailer under 10k for 144 mths.

AntonB wrote:
Trying to find a bank to finance around $9000 longer than 60 months. Like 144 or something.any suggestions? Any trying to be funny comments will be replied to with swiftness!!!!!!!LOL

I must say.. You ASKED to get funny comments just by saying "no funny comments" :S

Now days you simply are going to have a tough time convincing banks to go very long term loans.

Are you trying this as a "personal" loan or is the trailer collateral?

Makes a difference..

Years ago I tried to by a Compact Utility Tractor with a few implements. Banks did NOT want to even touch that for ANY loan unless I took out a loan against my home equity or a personal loan (to which the interest was out of this world and they would not loan enough for all I wanted).

I ended up buying the tractor and implements through the dealer financing (against what I like to do but I wasn't about to put my PAID FOR home up for collateral). Ended up with a zero interest loan for 60 months (basically a closed ended loan which if paid off early does not save you any payments).

Honestly, If 60 months is not feasible payments for $10K borrowed then you are actually not able to afford the purchase to start with.

The interest you will pay for a depreciating "asset" will be astronomically outrageous if you financed for 144 months..

The difference in payments is peanuts take a look at the following examples..

$10K at 7% for 60 months is $198.01 per month, you will pay $1,880 in interest.

$10K at 7% for 144 months is $102.84 per month, you will pay $4,808 in interest.

In my example above the difference is $95.17 per month more for 60 months but you will pay $2,928 LESS in interest.

Your trailer even if you bought it new off the lot in 12 years will be worth a whopping $2,000 - $3,000 IF you are lucky, unlucky and it is rotted out $800 for scrap..

I would recommend rethinking your purchase if $100 more a month in a payment is not feasible.

Play with an Amortization Calculator which can give you a good feel on how much the payments will be and the interest owed..

HERE is a good calculator to use.