Any Advice on Financing an RV Purchase?

[liquidspaceman]

Hello All,

Sorry for this long email, I am a little depressed as I got denied for a loan recently and trying to get approved. Please give me feedback if you have any?

I recently attempted to purchase a 2006 Majestic 23A from Cruise America with super high mileage for 18,995. At the time I only had $3000 to put down with a 713 FICO. They sent to two banks - Medallion and US Bank. I was not approved for either (or at least I don't think I was, the dealer was kind of a putz).

Several months later I now have a 720 FICO and $11,000 dollars. I was thinking about buying an RV cash but saw a few models at a local dealer like a 2001 Dutchmen for $18,000 that seemed pretty nice.

My question is, can you think of any finance company that would approve me with $11,000 down? I'm really worried about applying again and getting another hard pull or two if my chances of being denied are slim.

I think part of the reason I'm denied is that I'm not a homeowner (live with my elderly mother and care for her so I pay no rent). I don't have a need for a house as when my mother dies, I am her only heir. So I pay zero rent (basically we are my moms caregivers as she is handicapped).

Here are my stats: 38 years old, been at my current job 15 years. I make 55 grand a year, wife makes 45 grand a year. Both cars are paid for. I don't have an auto loan on my credit because my wife bought the truck and I paid it off in 2 years. 713 fico with no baddies at all on my credit report. I have a bunch of high limit cards (5000 plus) on my report with zero balances because I always pay them in full. I have NO auto loan on my report.

Basically, I feel like due to my situation (non home owner, no car loan on report), I will not be approved. Or am I wrong about that? Should I save some more money and go for a newer RV? Is it easier to get approved with 15k down on a 30k RV that's newer as opposed to a 2001 model?

I recently was given a cheapie 1980 RV that has LOTS of problems with it and frankly I want something newer. What would you try if you were me? Do you think with the bigger down I might be approved?

Thanks

[phenrichs]

I cannot say enough good about credit unions. Ours killed the rate of every other bank in town on our cars, TT, and house.

[Javi1]

I suspect that the OP's credit rating nor his income have anything to do with the refusal to finance... Most banks are not going to loan money on vehicle that is more than 6 or 7 years old, nor on a diesel with more than 100K or a gasser with more than 50K... just isn't going to happen... you can check the loan eligibility page of BoA and other banks and they will flat tell you up front .... No

The exception to this might be a bank where the person has an established track record and a deposit history of several years... Neither of which the OP seems to have...

[Bumpyroad]

jeffcarp wrote:
You came to this group with a specific question and I am glad to see nearly everyone here helped you with that. You are working hard and doing what you need to do in your life situation. You owed none of us the explanation you just provided, especially not someone who knows nothing about you or your situation but feels the need to chime in unsolicited anyway to comment on something not being right based on knowing about 10% of your life's financial circumstances. Ignore that nonsense.

liquidspaceman wrote:
In regards to my income vs. something not being right....

the point I was trying to make, which evidently went right over your head, was that something was amiss here. So far NOBODY has recommended he talk to a financial adviser as to how to rectify his situation. I mean a $40K medical bill would be a big blow but I would swap any of my last three home loans for a $40 K one. all the "positive" comments here is how he can buy a RV that he evidently can't afford at this moment. Not to how he can correct his current credit situation.
bumpy

[71stang99]

I had a 2011 financed through BoW. I was ahead six months on payment and wanted to trade it in on a 2012. They wouldn't finance me so I went to my CU and financed it without heartache. I don't understand the rationale but the interest rate was under four and the finance amount was 49k. A much better rate vs. BoW on the 2011 note and better than what they were offering.

I have no real home only some property since being a full timer however a strong work history and above average income.

[belairbrian]

liquidspaceman wrote:

2gypsies wrote:
Not financing is the best way to go. You stated you saved an additional $8,000 in several months bringing your savings to $11,000. Why don't you save for another year and buy one for cash?

I have considered doing just this. I figured by December I should have another 5000 saved. My biggest issue with this is missing out on taking my kids on vacation in the summer.

Just throwing this out there. keep saving so you can pay cash. This summer rent an RV for vacation. Will also give you a chance to try one and see what your ideal features would be before you buy.

[DSLPWRD]

My dad and I both went through similar situations. I'm thinking the age and mileage of the RV you are trying to purchase are your biggest hurdles. For us, it was easier to get a larger loan for a longer term on a newer rig than to finance something cheap. Some banks have minimum loan amounts and they may just not want to give you such a small loan on a higher risk rig.

[jeffcarp]

You came to this group with a specific question and I am glad to see nearly everyone here helped you with that. You are working hard and doing what you need to do in your life situation. You owed none of us the explanation you just provided, especially not someone who knows nothing about you or your situation but feels the need to chime in unsolicited anyway to comment on something not being right based on knowing about 10% of your life's financial circumstances. Ignore that nonsense.

liquidspaceman wrote:
In regards to my income vs. something not being right....

[liquidspaceman]

2gypsies wrote:
Not financing is the best way to go. You stated you saved an additional $8,000 in several months bringing your savings to $11,000. Why don't you save for another year and buy one for cash?

I have considered doing just this. I figured by December I should have another 5000 saved. My biggest issue with this is missing out on taking my kids on vacation in the summer.

[liquidspaceman]

In regards to my income vs. something not being right. My mother has a lot of serious medical expenses for her long term care. I also have two young children.

So what is being stacked against me:

1. Disabled mother medical care. As an example, I recently finished paying off a $40,000 bill due to things not covered.
2. Pre-teen kids
3. Living in California in general is damn expensive
4. Just recently paid off both of our cars and saved 11,000 so I am now going positive with my cash flow.
5. Always paid cash throughout my life. In the past 18 months, I have been establishing credit. So I guess you could say I have "new" credit. Which I'm told some financial institutions like to see 10 year credit histories. My average age of accts is 2.2 years.

[Bumpyroad]

Dick_B wrote:
Didn't read the long post but what about a Home Equity Loan where the interest would be deductible if you itemize deductions.

so you get 20-30% back of the interest. no big deal.
bumpy

[mlts22]

Financing is a good idea in some ways -- getting a loan and paying it off on time definitely will help the ol' credit score.

[Dick_B]

Didn't read the long post but what about a Home Equity Loan where the interest would be deductible if you itemize deductions.

[2gypsies1]

Not financing is the best way to go. You stated you saved an additional $8,000 in several months bringing your savings to $11,000. Why don't you save for another year and buy one for cash?

[time2roll]

Where do you bank? Go apply with them. They should easily see all your direct deposits and activity.

Worst case wait until end of summer and pay cash. Wait, that might be a best case scenario 😉

[pbitschura]

fla-gypsy wrote:
Join a local credit union and finance through them. I would think with that income and credit score financing should not be an issue

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