Rv financing question on loan amount?

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.

I'm not sure what you are asking :h Each lending institution might have a different policy than another so asking a general question is probably not going to get you any real useful info. I can see again depending on the institution there could be a minimum loan amount where they bank won't actually LOSE $$$ on the loan since there are sunk costs in loans such as paperwork, handling titles, and servicing the monthly payments, sending statement, etc.

I think you are best asking this question about actual minimum amounts if any of which ever lending institution you might be considering using.

Larry

I was basically wondering if there are minimum loan amounts on an rv?I

As said above, at one bank maybe yes, at another bank maybe no.

You probably wouldn’t have a problem financing through the RV dealership if banks won’t. Dealerships handle this issue often but the rate will probably be higher.

If this is a brand new camper you are considering, then working through your dealership will most likely provide positive results. However, if it is a used unit, more than 2 or 3 years old, you may not find any institution to lend the money. If you are searching institutions that "might" return positive results, then I'd start with the loan company that morgtaged my house, or my current automobile, or if I have no installment loans at the moment, the financial institution that financed my last car or truck.

Another option, if you own your home, you might consider a home loan line of credit, then you could own right out the camper without it being tied to a loan, but you'd have a loan against your house.

Another option, and definately NOT the best, probably the absolute worst, but it could be done ... a true credit card with a limit left enough on it to cover what your cash will not cover. But you may end up paying a horrid interest rate too! (I personally have not had a "credit card" in over 25 years, except one, and put a $25 charge on it once a year just to keep it active. This is an absolute...absolute...absolute last resort for emergency money).

Well, I suppose there is one option even lower than a credit card...The local mafia loan shark!.... :S

Do you have any rich relatives that still love you? Maybe Grandma?

The $10,000 minimum recently forced me to switch lenders. The funny thing was that the bank that I had my previous trailer financed with was the one who rejected the loan on the replacement trailer because I was not borrowing enough. I get the reasons. i also remember when banks loaned on character, not quantity.

The larger loans typically have a lower interest rate. Small loans and used have a higher rate of interest. If there are not any quick pay off penalties, get the loan for the full amount upon purchase, then slap the $5,000 on the table a couple months later. Banks are there to make themselves happy!!!!
Brian

Figure out how much your payment will be. Let's say $500/mo. Pay yourself that 500 into a savings acct, and there is your five grand at the end of ten months.

You might have to check around because not all institutions will loan money with an RV as collateral. If you sign a personal loan the interest will probably not be deductible. At least that used to be the rule. Now, with the 2018 version of the tax plan, most of the deductions have gone away. Maybe a Home Equity Loan would be best but the interest on it might not be deductible for 2018.
The good news is that the new tax plan simplified the code down to around 600 pages instead of 1400 pages so it will be easier to understand!

Depends on the bank. Try a CU but you really need a loan for 5.5k?