Financing Q's
Hi all, Probably been asked before, but a search didn't seem to get me what I wanted. The wife and I are seriously thinking about pulling the trigger on a new trailer to replace our 2005 Hybrid. ...
Forum Discussion
poppin_fresh wrote:
I talked to the CU today.
The rate is good, but because the trailer I want is only (yeah "only") ~$22K the max term available is 8 years. The interest is decent, but it makes for a payment I could afford, but would rather not.
I like the flexibility of a lower payment as I can always pay more towards the loan, but I can NEVER pay less....
Back to the hunt I go.
While you are waiting (IE HUNTING) for another trailer perhaps you should set back some CASH (sorry, I realize that isn't what you want to hear) NOW. Set aside the same amount that you are willing to spend as a payment. At $150 per month for 10 months that is $1,500 you can use as a "down payment" which means you can borrow less or buy a bit more expensive than what you can borrow.
At $250 per month set aside for 10 months that is $2,500 you can use as a down payment.
I ALWAYS buy my vehicles this way, when I pay off a vehicle early then the payment I would have been making GOES INTO A SAVINGS account. This allows me to save up for a down payment for the next vehicle.. That money also serves as a buffer in case of the need to make emergency repairs to my vehicles.
Doing so ensures I will always be able to make a pretty healthy down payment.
I personally would not consider taking out a loan longer than 5yrs on a trailer, no mater how "good" of a rate you get the interest you will pay is just silly insane. Interest eats into your buying power..
If you can't afford to set aside money now while you are looking then you should rethink buying a RV.. After all once you buy, you ARE committed to the payments..
