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

I recently looked into this area and the only limit I was quoted was that the banks involved would not accept less than $100/month payments.

aftermath wrote:
$10,000 @ 6% for 144 months will cost you $4,052 in interest. Cost per month will be $98.

Wouldn't that depend on your credit score, A score of 800 gets a better rate than a score of 700.

Gdetrailer wrote:

AntonB wrote:
The credit union wants 60 month loan, for the 9000. 144 was just a number I got for a 10000 loan.

1) Just wondering if there were viable options for say 96 month or so?

2)Most banks and credit unions are at the 60 month intervals.

3) 9000 would be the amount financed.

#1 No. The ONLY way that I know you MIGHT get a loan on a RV longer than 60 Mn is THROUGH A RV DEALER. RV dealers use FINANCE COMPANIES which are basically non public banks (They don't make loans directly to the public, the dealer acts as a loan broker).

#2 Correct. Public banks and credit Unions typically will loan up to 60 months for items like RVs. This LIMITS the odd chance that you default on the loan and they end up owning a RV which is worth LESS than the outstanding loan. THEY DO NOT WANT TO OWN A RV, therefore they LIMIT the RISK they take.

#3 USE the Amortization Calculator and plug in your interest, amount to be borrowed and the length. Then play around with the calculator.

Wrong on credit unions. Ours, the credit union for Minnesota State, County, and Municipal Employees will finance RV's out to 15 years. Anyone can now join. And they will give rates as low as 2.99% to match this one, which first was for Northwest Airlines employees but has since expanded, does 2.99% rates which any credit union worth being a member of should match. Of course your not going to use the 15 year term to pay off the loan. But it gives you flexibility and you pay extra to pay it off way early.

Trust me--some credit unions offer what no RV dealer or bank can match. We've bought two TT's and the credit union was the way to go. Buy and finance, if necessary, smart!

Actually as of Oct 2013 they only do loans through dealers, sorry for the misinformation.

OP try Essex credit.

Goldstalker wrote:

Gdetrailer wrote:

AntonB wrote:
The credit union wants 60 month loan, for the 9000. 144 was just a number I got for a 10000 loan.

1) Just wondering if there were viable options for say 96 month or so?

2)Most banks and credit unions are at the 60 month intervals.

3) 9000 would be the amount financed.

#1 No. The ONLY way that I know you MIGHT get a loan on a RV longer than 60 Mn is THROUGH A RV DEALER. RV dealers use FINANCE COMPANIES which are basically non public banks (They don't make loans directly to the public, the dealer acts as a loan broker).

#2 Correct. Public banks and credit Unions typically will loan up to 60 months for items like RVs. This LIMITS the odd chance that you default on the loan and they end up owning a RV which is worth LESS than the outstanding loan. THEY DO NOT WANT TO OWN A RV, therefore they LIMIT the RISK they take.

#3 USE the Amortization Calculator and plug in your interest, amount to be borrowed and the length. Then play around with the calculator.

BofA does.

GOOD BANKS DO NOT.

Bet you will pay even higher rates and have to jump through a LOT of hoops.. and in the end you will regret getting mixed up with them.

I personally wouldn't trust BofA to start with but that is my gut feelings.

Borrowing for things like RVs for more than 5 yrs is an very costly way to "afford" something that you in reality can not afford nor should you buy (with the exception of something like a Motor Home which you might not have a choice).

SMART folks and SMART BANKS KNOW AND UNDERSTAND THIS.

That is where the power of using a Amortization Calculator comes in handy.

If you can not afford $9K for 60 months, that is a sign that you are borrowing TOO MUCH.

Wait a year, save up, put back the money you would be paying in payments for that year.

Even at $100 per month that is $1200 which you can add to a down payment and reduce the loan amount needed to $7,800, that would get your payment down to $154.45 per month 7% and 60 months...

Paying nearly $5K of interest on a $10K loan is silly let alone adding $5K to the cost of your RV :S :h

But hey, it is your money (and hard work) to do what you will with it.. It wouldn't be the way I would throw my money out though..

Ok thanks

Gdetrailer wrote:

AntonB wrote:
The credit union wants 60 month loan, for the 9000. 144 was just a number I got for a 10000 loan.

1) Just wondering if there were viable options for say 96 month or so?

2)Most banks and credit unions are at the 60 month intervals.

3) 9000 would be the amount financed.

#1 No. The ONLY way that I know you MIGHT get a loan on a RV longer than 60 Mn is THROUGH A RV DEALER. RV dealers use FINANCE COMPANIES which are basically non public banks (They don't make loans directly to the public, the dealer acts as a loan broker).

#2 Correct. Public banks and credit Unions typically will loan up to 60 months for items like RVs. This LIMITS the odd chance that you default on the loan and they end up owning a RV which is worth LESS than the outstanding loan. THEY DO NOT WANT TO OWN A RV, therefore they LIMIT the RISK they take.

#3 USE the Amortization Calculator and plug in your interest, amount to be borrowed and the length. Then play around with the calculator.

BofA does.

AntonB wrote:
The credit union wants 60 month loan, for the 9000. 144 was just a number I got for a 10000 loan.

1) Just wondering if there were viable options for say 96 month or so?

2)Most banks and credit unions are at the 60 month intervals.

3) 9000 would be the amount financed.

#1 No. The ONLY way that I know you MIGHT get a loan on a RV longer than 60 Mn is THROUGH A RV DEALER. RV dealers use FINANCE COMPANIES which are basically non public banks (They don't make loans directly to the public, the dealer acts as a loan broker).

#2 Correct. Public banks and credit Unions typically will loan up to 60 months for items like RVs. This LIMITS the odd chance that you default on the loan and they end up owning a RV which is worth LESS than the outstanding loan. THEY DO NOT WANT TO OWN A RV, therefore they LIMIT the RISK they take.

#3 USE the Amortization Calculator and plug in your interest, amount to be borrowed and the length. Then play around with the calculator.

The credit union wants 60 month loan, for the 9000. 144 was just a number I got for a 10000 loan. Just wondering if there were viable options for say 96 month or so? Most banks and credit unions are at the 60 month intervals. 9000 would be the amount financed.

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.