Is there a minimum amount one can finance an RV?

[95jersey]

Some of the finance websites I have seen say they will not finance anything under $8000.

Is that a general rule of thumb for most RV dealers?

[Grit_dog]

DownTheAvenue wrote:

Grit dog wrote:

Once you take the loan, it does nothing to just chunk a little off the top of an amortized loan. Now if you're not taking the loan to term you can save interest by paying it off early but again makes no difference when you apply he extra $. Only the end date matters.

This is completely wrong. A simple interest loan (just about every consumer loan today is simple interest- not the old rule of 78's) will always pay down when extra money is applied to the principle. The problem is, however, most loan servicing takes extra money and applies it to future payments in order to preserve the interest they collect.

Ha! Yeah you're right. And apparently the 78s rule went away in 2001!
Apologies for the bad info. Haven't taken any ancillary loans since around that time. Save for ones that were extremely temporary and paid off quickly. Learn something new every day.
That's cool that there's a real incentive for paying down principle.
In that case, OP, if you're building credit, take a loan for the full amount and chunk some off the principle periodically but if you take the loan to term, you likely will still get the "credit" for a larger loan.
But again, at 44years old I'm not an expert on loans, credit ratings, etc. Been out of the game too long apparently. Find a couple credit unions and go and talk to them rather than internet sources. Generally regarded as a better lending experience.

[russkerri]

You might check with a credit union. They have much cheaper rates than most finance companies and have different regulations.

That being said, we weren't a credit union member and got a loan through Bank of the West to borrow a few thousand for our travel trailer. The interest rate is crappy, but we haven't messed with refinancing.

[time2roll]

My CU stopped boat and RV loans in 2008.

[DownTheAvenue]

Grit dog wrote:

Once you take the loan, it does nothing to just chunk a little off the top of an amortized loan. Now if you're not taking the loan to term you can save interest by paying it off early but again makes no difference when you apply he extra $. Only the end date matters.

This is completely wrong. A simple interest loan (just about every consumer loan today is simple interest- not the old rule of 78's) will always pay down when extra money is applied to the principle. The problem is, however, most loan servicing takes extra money and applies it to future payments in order to preserve the interest they collect.

[Campfire_Time]

doxiemom11 wrote:
Check out a credit union. We changed to a CU because they had no age restriction and no minimum amount of finance. The had rv loans and just wanted the rv to be worth as much or more than you are financing.

Not always true though. Like banks no two CUs are alike. Ours is through a credit union. We had to borrow a minimum of $10k.

[doxiemom11]

Check out a credit union. We changed to a CU because they had no age restriction and no minimum amount of finance. The had rv loans and just wanted the rv to be worth as much or more than you are financing.

[95jersey]

Thanks for all the advice. I didn't feel like calling lenders as they want you to fill out forms and run your credit before they will even talk to you. And they always tell you they can help you until you get deeper into the conversation and then there is some gotcha. The call to the bank will be the last call I make after I do my research.

[braindead0]

If you have good credit check out lightstream.

[catkins]

Own a house? How about a home equity loan?? I'd go with whatever gave me the best interest rate on the amount I needed. Good luck!

[Effy]

This is totally dependent on the bank. Lots of small local banks will provide a personal loan under this amount unsecured. Heck you could put it in a credit card. We bought a car that way once, credit card had 0% so we used the card and paid it off before the 0% expired. No shortage of lenders out there.

[time2roll]

95jersey wrote:
I am looking to finance maybe $6000 over 36 months on a $12k RV. I know it is very small but I like holding onto my cash, and I usually pay the loan off early and it helps build my credit.

I recommend you finance the full $12k and still pay it off in 36 months. Assuming the interest rate is the same. Even get the terms for 10 or 15 years if the rate is the same. Make sure there are no prepayment penalties. If times get hard it will give flexibility. And if good times continue then you are still clear in 36 months.

[Crowe]

If the minimum is $8K, finance that much and pay it down to your $6K target quickly.

This is what I would do, unless you are in a position where you can get an unsecured note for the $6K. Take the $8K then slap the extra $2K down on it immediately but make sure they apply it to principal. Look into a credit union and see what their rules are. You can join most for a nominal fee and they often are less restrictive with better interest rates.

[Grit_dog]

Dutch_12078 wrote:
If the minimum is $8K, finance that much and pay it down to your $6K target quickly.

Once you take the loan, it does nothing to just chunk a little off the top of an amortized loan. Now if you're not taking the loan to term you can save interest by paying it off early but again makes no difference when you apply he extra $. Only the end date matters.

To the OP, you should call a bank, not a bunch of goofballs on a forum for this question.....unless you think someone here may be a potential lender...lol.

I do agree with Dutch thou. $6k, 8k who cares. Sounds like you can pay cash but would rather build credit. The difference in payment is minimal.

[Dutch_12078]

If the minimum is $8K, finance that much and pay it down to your $6K target quickly.