Rv financing question on loan amount?

[Camper214]

Hi everyone I have another question?We were looking at a travel trailer in the 11k range and we are considering purchasing it.I was looking online and haven’t talked to any banks yet but I want to put half down on it so it would be roughly a 5500 $loan give or take a few hundred.I have noticed on some sites that the minimum rv loan some require is 10k?I was wondering if anyone has run into this before?I want to keep my payment low and don’t really want to buy a more expensive trailer.We haven’t filled any paperwork out yet but want some info before I get involved filling the credit app out and have salesman calling me.Thanks for any replies.

[travisc]

People have already mentioned it but in summary get a loan on the full purchase price themn make a principle only payment to bring it down to what you originally wanted. Principle only payment does not pay any interest be careful when you do this so it only goes to principle. Otherwise it’s interest plus principle

[time2roll]

Camper214 wrote:
Hi everyone I have another question?We were looking at a travel trailer in the 11k range and we are considering purchasing it.I was looking online and haven’t talked to any banks yet but I want to put half down on it so it would be roughly a 5500 $loan give or take a few hundred.I have noticed on some sites that the minimum rv loan some require is 10k?I was wondering if anyone has run into this before?I want to keep my payment low and don’t really want to buy a more expensive trailer.We haven’t filled any paperwork out yet but want some info before I get involved filling the credit app out and have salesman calling me.Thanks for any replies.

Yes there are minimums to get the best rate on home loans, RV loans etc.

Honestly if you are getting a loan I would go big and go long as long as you get the best interest rate. Then ramp up and make double or triple payments while times are good. These extra payments will come out of that cash you were going to put down.

[deltabravo]

DutchmenSport wrote:
If this is a brand new camper you are considering, then working through your dealership will most likely provide positive results.

The thing about using the stealership to run the financing is that they usually work with a credit company that will blast out your credit application to multiple banks / credit unions, and then each of those banks and CUs will run their own credit check. Having multiple credit checks can ding your credit score. My experience has been that credit checks remain on your credit report for 3 years.

For all of the reasons I just mentioned, my preference is to arrange my own financing.

Call the bank loan hotline and get specific details about their loans - ask them if they will finance lower than what the rate sheet online shows.
Check local credit unions too.

[Ruth12]

Travel financing loan sometimes becomes so hard to get but if you have a valid reason you can get it from different banks and companies. And here is the best travel finance sitestravel finance sites you can find and get amazing pricing.

[gafidler]

Talk to your local Credit union or bank

[SusanDallas]

You could go ahead and finance the full amount. Then, make a $5,000 payment on one of the monthly installment payments. After a few months, turn around and refinance the remaining balance to lower your payments.

[Camper214]

Thanks for the replies everyone and we will look into some of the options you guys have mentioned.

[classic_31]

We went through bank West dealer said if you played it off two quick they probably would not give you another loan right away

[Golden_HVAC]

With home loans, the bank is going to spend perhaps $500 getting the home apraised, and other processing fees. They done want a loan under $50,000 as these fixed costs become a higher percentage of their potential profit.

Another thought is if you are the potential finance officer, looking at owning one of the cars after failure to collect from the owner, would you want a clean condition sharp looking car? Or one barely worth $5,000? Sure I realize you are looking at a $10,000 + rv, but showing there just is not a lot of profit in a $5,000 loan.

You might try lendingclub.com. they provided me a loan on the handicap lift van I bought a few years ago. You can get prequalified online, handle all paperwork that way, including funding to my checking account, and auto payments monthly.

[westernrvparkow]

You will find many financial institutions with minimum loan requirements. It is simply because it doesn't make financial sense for them to do the paperwork, hold the documentation, collect and post the payments, do any collection work if necessary for the small amount of interest they would collect on a small loan. The total interest paid over 5 years on a $10,000 loan at 5 percent is only $1322.00. That's less than $265 a year. That might not even cover the cost of the person who opens the mail and posts the payment each month.

[time2roll]

Is there a prepayment penalty? If not just borrow the full price and make large payments.

[classic_31]

Put the $11000 on a 0% credit card it might cost you 2or 3 percent on total balance pay off $5000.00 and pay off balance before the 0% time period is up usually 12 to 18 months

[kerrlakeRoo]

If you have a good relationship with your bank, try them, for either a secured loan on the trailer, or an unsecured (signature) loan. If you have been with them for a long time, you may be able to deal. Another loan type which you may consider is if you have a CD or money market certificate with a bank or broker, you can borrow for very low rates against that in many cases.

[Thom02099]

Bank of the West specialises in RV and Boat loans. They advertise loan amounts start at $5000.

That said, why not finance the whole amount and simply double up on payments, or as previously suggested, immediately apply the $5000 you have available. With the larger, longer loan, your interest rate will likely be lower, hence your monthly payments will be lower. Most RV loans, like home mortgage loans, do not have a pre-payment penalty.