Is it possible to finance a $23K trailer for 180 months?

[SlothHorn]

I've noticed that my credit union only extends out to 8 years or so. I just clicked on the GoodSam financing table. The max for a $23K trailer is 12 years @ 8.49%.

Note: We have near-perfect credit and can put $ down if that makes a difference.

I understand that financing works differently with an RV due to its designation as a luxury item; however, it's surprising that I'm not seeing any options.

[Devocamper]

SlothHorn wrote:
FWIW, we have personal reasons for wanting a longer termed loan. None of it has to do with affordability, cash flow, bad credit, lack of a down payment, etc... The idea was to time the loan so that it'd be paid off right around the time our mortgage is paid + the time frame at which our youngest would be heading off on his own.

Looks like we'll need to readjust our thinking. Thanks for all the help.

Speaking from experience the children don’t always leave the nest as planed ! Something else to keep in mind . Plus in 12 years you most likely will either want a larger rv or be out of it altogether!

[campigloo]

ferndaleflyer wrote:
lane hog maybe in your world---I pay every thing with cash or check. Yes most still accept cash. I have no direct deposit either as I like to at least touch MY money. One day money, cash, will be eliminated. I know people that don't have a computer or a cell phone.

You’re right about that! Cashless society.
I’m kind of stuck in the middle. Auto draft is nice because we’re on the road a lot. Less mail and far less to think about.
So far as touching my money, every time an order of silver that I placed comes in I get all excited. The anticipation is almost as good as the big box on Christmas morning!

[lane_hog]

Nah, not just my world. Checks still make up about 20% of total banking activity these days, but a lot of that is checks being mailed to consumers for refunds, rebates, etc. vs. payments being sent in.

According to Social Security, over 99% of their payments are going out electronically. They only mail out about 550,000 checks a month, so you're definitely in the minority.

[ppine]

Who writes a check? Plenty of people.

[ferndaleflyer]

lane hog maybe in your world---I pay every thing with cash or check. Yes most still accept cash. I have no direct deposit either as I like to at least touch MY money. One day money, cash, will be eliminated. I know people that don't have a computer or a cell phone.

[TomG2]

lane hog wrote:
Who still writes a check for their payments?...

Not me. This is 2020 not 1920. Payments are applied the way that I direct them.

[lane_hog]

Who still writes a check for their payments?.... Maybe a few people who started loans 13 years ago, but I'd say the majority of payments being made on RV's right now are electronic.

[Huntindog]

wanderingbob wrote:
As stated above , making extra payments is wrong , you make a payment and also enclose a check and a note stating you are making a " payment on the principal " also .

That is the way it was done in the good old days.... Some of those things were not all that good... So they got changed for the better.
Prepaying on a loan is one of those things.

[TomG2]

Only save up and pay cash. Doesn't matter if the kids grow up and move out in the meantime. Doesn't matter if you have to wait for an inheritance. Doesn't matter if inflation outruns your saving plan. Wait. Cause that's what smart people do.

[Gulfcoast]

Those payments get old real fast. Sure glad I was able to never finance one.

[campigloo]

No offense intended but it sounds like you can’t afford this purchase. Why not look at a used unit, put more money down and not finance it for a day over 36 months. Just think of all the fun things you can do with that money. I’ve never heard of anybody that thinks payments are more fun than road trips.
Happy trails! Hope you find one!!!

[ppine]

It shouldn't be.

[TomG2]

wapiticountry wrote:
.... When you pay extra, it is automatically applied to the balance, not future payments, by law. Lenders will often also advance the next payment due date when excess payments are received...

Both the principal is reduced AND they advance the next payment due date? Looks like it would be one or the other.

[wapiticountry]

Gdetrailer wrote:

wanderingbob wrote:
As stated above , making extra payments is wrong , you make a payment and also enclose a check and a note stating you are making a " payment on the principal " also .

While I have mentioned that, I have run into a pretty persistent bunch of folks here that always continually point out that there is no need to specifically state how the extra money is to be applied. They insist it is done automatically (which is not always the case, but you can't argue with them).

I cannot figure out what harm it causes to specifically indicate how it is to be applied and in reality it takes but a second and a slight amount of ink from a pen to mark it as such.

Years ago when banks used payment books they ALWAYS had a line which allowed you to fill in the extra amount and how it was to be applied..

Banks are not mind readers and typically the DEFAULT is to apply any extra funds as a extra P&I payment.

Remember a loan IS a binding legal contract..

Almost all vehicle loans are simple interest. When you pay extra, it is automatically applied to the balance, not future payments, by law. Lenders will often also advance the next payment due date when excess payments are received leaving the borrower with the option to either continue payments on schedule, thus shortening the loan term or skipping a payment in the future. It would be the borrower's responsibility to verify with the lender that a future payment can be skipped when payments in excess of the minimum are made. In practice it is very similar to what happens with credit card payments above the minimum amount.