to buy or not to buy

[heffnerfam]

We are looking at upgrading to a 5th wheel. We currently have a hybrid that we have a lien on. We have gotten two different stories from rv dealers and I am not sure which is the best option. Fyi we do not have the best credit, but do have a good amount of cash for a down payment.

So option number one was bring in cash and trade and let the dealer work out the details.

Option two was pay off the trailer, wait a month and use the trailer as down payment. Waiting a month would allow our credit to rise a little with a loan paid in full.

I am open to all useful opinions.

[whiskyrunner]

Amazing how rude some of the postings have been so far, they never said they couldn't afford a FW, just said their credit isn't the best, which in no way says anything about the money situation, my credit isn't great...it's because I don't have any credit cards, or a home loan to make me look good, paid for already and my truck is also, but hardly any miles, less than 90000 miles.
And what does a decent truck have to mean, you have no idea what kind of set up they have, could be a older dually, maybe they felt bad in ready some of the other posts where everyone has to have a new dually with all the bells and whistles

[mdamerell]

Personally, I'd sell and pay off the 1st trailer before heading to the dealership for the new 5er. Nothing sweeter than a paid off toy.

That said, check with your tax guy but you may also be able to finance and claim your 5er as a 2nd home (15 year mortgage and deduct interest).

Not to be rude, but a "decent truck" may not be enough for a 5th wheel. Since 5er's carry a heavy pin weight 20-25% of loaded trailer weight it takes more truck to pull a 5er than a Hybrid or TT for that matter. The truck will run out of cargo capacity well before it runs out of towing capacity. A pre 2005 truck will also have much lower capacities than a newer truck.

Run the numbers and be sure you are not complicating issues. Don't trust the salesman, do your own math.

Good luck.

[SasquatchandOrc]

ed6713 wrote:
With option one, by the time the dealer spins all the numbers this way and that, you won't have a clue as to what you're really paying for your new RV. Other than way too much. The dealer version of the of con mans shell game, if you will.

I'd go with option two. That way it will be a whole lot clearer just what's going on.

Thank you so much! for your Straight answer!

our Credit is not that bad! We have a decent truck. We are wanting to full time within the next year or so!
He retired from the Military after 29yrs. our kids are leaving the nest! Excited to be on the road again.

[Dtank]

NMDriver wrote:
Pay off the trailer, keep it and enjoy being debt free. Spring is around the corner and a Hybred is made for spring.

OP - your question/s sound like a lose-lose situation.

Agree with the above.

BTW -

1. *Never* trade-in.
You will be (way) better off selling whatever you have yourself.

2. If you require financing - Find and provide your own.
Bank or Credit Union.

If one of those won't finance it - for sure you don't want financing from a dealer.
The definition for that is: "Exorbitant" (rate/s)..:(

Good luck with whatever you decide..:)

.

[NMDriver]

Pay off the trailer, keep it and enjoy being debt free. Spring is around the corner and a Hybred is made for spring.

[kaydeejay]

If you were pulling a hybrid, do you have enough truck for a fifth-wheel in the first place??
If funds are that tight I don't see a new truck in your immediate future.

[ed6713]

With option one, by the time the dealer spins all the numbers this way and that, you won't have a clue as to what you're really paying for your new RV. Other than way too much. The dealer version of the of con mans shell game, if you will.

I'd go with option two. That way it will be a whole lot clearer just what's going on.

[geotex1]

Not to put you off, but if your credit is so borderline is the expense of a 5er really where you want to be? The voodoo that's in credit scoring won't actually tick up your number all that much from a loan payoff compared to those things that push it down... In other words, there's no direct proportion of change.

Another real expense with the 5er is a competent tow vehicle, and many think because they see half-ton towable 5ers that's really the case. Generally, it's not. It's for those unusual half-tons with high payloads. Even many commonly configured three-quarter-tons aren't enough truck.

As for a hybrid, you will always do better selling privately. Top dollar absolutely requires a used unit in excellent condition as the wholesale market is flooded with used hybrids after the usual Fall through Winter show purchases.