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.

If you're a member of Costco check them out.

Why?You do realize that $23K trailer in one year will be worth $11K on it's best day?In 5 yrs maybe $6KIn 8 yrs maybe $3Kand if in the case of severe water damage absolutely nothing in a hurry.It is a depreciating asset, loses value the second you sign the paper work.8.49% interest for 12yrs on an asset which loses value every second you own it and is highway robbery.So, a loan of 23K for 12 yrs at 8.49% means your "purchase" price once you get done paying the loan off is $36,747!!!Interest paid is $13,747 which is one heck of a lot of interest and cost for a RV worth pretty much zero at the end of the 12yrs.The payment is $255.18 per month for 12 yrs.For 8 yrs the same loan and same interest you only pay $8,766 for a grand total cost of $31,766 and the loan payment would be $330.90..I would highly recommend you play with an amortization calculator to see how loan length and interest rate affects how much interest you pay and what your payments will be..AMORTIZATION CALCULATORThat 8.49% interest is way too high, I would recommend you talk to your own local banks, sometimes you can also get slightly better interest rates when purchasing through the RV dealer.According to US NEWS a credit score of 600 or higher should get you an average of 4.83% which is nearly half of what you are talking about!Shop around, lower interest rate WILL drop your payments considerably.Additionally, put as LARGE of amount of cash down you can comfortably afford in order to reduce the amount you need to borrow, that WILL make for a considerably lower monthly payment..Never fall for those what do you want the payment to be sales come ons, they bury you in interest debt by making the loan term longer!

Small loans are likely to viewed more as a nuisance than an opportunity. It costs the lender the same amount of money to process a $20,000 loan as it does a $200,000 one. Therefore the actual costs of $20,000 loans are ten times higher than $200,000 ones from the lender's point of view. If I was underwriting an RV loan, I would be very concerned that someone wanted to get a 15 year loan on such a low balance. It would raise a red flag that the borrower had cash flow issues.

Gdetrailer wrote:Why?You do realize that $23K trailer in one year will be worth $11K on it's best day?In 5 yrs maybe $6KIn 8 yrs maybe $3Kand if in the case of severe water damage absolutely nothing in a hurry.It is a depreciating asset, loses value the second you sign the paper work.8.49% interest for 12yrs on an asset which loses value every second you own it and is highway robbery.So, a loan of 23K for 12 yrs at 8.49% means your "purchase" price once you get done paying the loan off is $36,747!!!Interest paid is $13,747 which is one heck of a lot of interest and cost for a RV worth pretty much zero at the end of the 12yrs.The payment is $255.18 per month for 12 yrs.For 8 yrs the same loan and same interest you only pay $8,766 for a grand total cost of $31,766 and the loan payment would be $330.90..I would highly recommend you play with an amortization calculator to see how loan length and interest rate affects how much interest you pay and what your payments will be..AMORTIZATION CALCULATORThat 8.49% interest is way too high, I would recommend you talk to your own local banks, sometimes you can also get slightly better interest rates when purchasing through the RV dealer.According to US NEWS a credit score of 600 or higher should get you an average of 4.83% which is nearly half of what you are talking about!Shop around.There are no auto or truck loans written with 12 year terms. So that average rate would not apply to the terms quoted on a twelve year RV loan. Furthermore, RVs, boats and other luxury items often carry a higher rate than Autos or homes. After all, should someone get into financial straits, what are they most likely to stop paying on? Shelter and transportation? Not likely. Toys like boats and RVs? Probably

Less down is probably better with a small loan. Ask the dealer what he can do. Although since April lenders are getting skittish about long loans and want higher interest. See if the dealer can get close to your 8yr rate. Google "RV Loans" for a few leads if this is a private sale.

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

Devocamper
Explorer
Aug 20, 2020
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
Explorer
Aug 20, 2020
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
Explorer II
Aug 20, 2020
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
Explorer II
Aug 19, 2020
Who writes a check? Plenty of people.
ferndaleflyer
Explorer III
Aug 19, 2020
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
Explorer
Aug 19, 2020
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
Explorer II
Aug 19, 2020
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
Explorer
Aug 19, 2020
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
Explorer
Aug 18, 2020
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
Explorer
Aug 18, 2020
Those payments get old real fast. Sure glad I was able to never finance one.

Forum Discussion

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

About Travel Trailer Group

Related Content

Financing

Financing

Financing TT's

financing rv

Rv financing question on loan amount?