Rv loan rates!

[mkasner]

Anyone looked at RV loan rates lately! For 800+ credit scores 8% or more! Even through local credit union. Who is buying these over priced RVs with these rates?

[JimK-NY]

Bedlam wrote:
I have never financed discretionary purchases. It takes me a while to save up, but I do not have the overhead of loans slowing my saving. Paying off our home was the real factor in being able to pre save for purchases rather than financing them into the future at a higher cost.

That is out of date thinking that came from our grandparents era or earlier. I financed my last car and my pickup truck even though I had the cash. First dealerships typically get a substantial rebates when they write up financing. Hence we have been able to save money over the initial dealer negotiations. Second it past years rates were so low it made no sense to give them the cash. I financed my car and truck at about 3% and invested that money making over 7%. My mortgage did even better. The mortgage was at 3.2% for $300K. Within a the first 5 years I made over $100K on the money I mortgaged. That was with a conservative, diversified portfolio. In addition, I took a nice tax deduction and I had the money in hand if needed for any sort of emergency.

With rising interest rates borrowing to invest is not likely to make sense for a while but there are still other reasons not to pay with cash.

[3_tons]

Bedlam wrote:
I guess I have been dead the last 15 years and didn't get the memo...

Ha!! Well , though I know your ‘emancipation’ didn’t happen without lots of discipline and perseverance, count yourself fortunate as it appears ‘the times they are a changing’ (ugg!) 😞

3 tons

[Bedlam]

I guess I have been dead the last 15 years and didn't get the memo...

[3_tons]

Bedlam wrote:
I have never financed discretionary purchases. It takes me a while to save up, but I do not have the overhead of loans slowing my saving. Paying off our home was the real factor in being able to pre save for purchases rather than financing them into the future at a higher cost.

Well FWIW, the word ‘mortgage’ comes from the French word for ‘morgue’ meaning ‘you pay till you die’ thus (though somewhat updated…), not unlike the ‘Rent-Royalties’ structured economic system of medieval times…:h

3 tons

[Latner]

Bedlam wrote:
I have never financed discretionary purchases. It takes me a while to save up, but I do not have the overhead of loans slowing my saving. Paying off our home was the real factor in being able to pre save for purchases rather than financing them into the future at a higher cost.

x2

[Latner]

Rocky2 wrote:
My current RV offered an additional $5k off if I financed through them. When I read the contract, there was no prepayment penalty so I financed it for one payment and then paid it off. For the $170 interest I paid, I saved $5k off the selling price. It's not always about interest rates or monthly payments, it's what does it really cost.

Nicely done!

[Bedlam]

I have never financed discretionary purchases. It takes me a while to save up, but I do not have the overhead of loans slowing my saving. Paying off our home was the real factor in being able to pre save for purchases rather than financing them into the future at a higher cost.

[JimK-NY]

deltabravo wrote:
Here's the current rates for a credit union I use in Washington:

APR* Loan Amount** Max Term (months) Vehicle Age
6.99% No Minimum 60 2019+
7.74% No Minimum 84 2019+
8.24% $25,000+ 120 2019+
8.49% $50,000+ 180 2019+

THere's NO WAY I'd finance an RV purchase at today's HIGH RV prices combined with the high interest rates.

I understand the feeling, BUT

For the past decade and more interest rates (an inflation) have been very low. Now that they are going up interest rates are still at or below the historical averages. If you don't have the money and want that car, RV or house, then there is little choice but to pay the rates. On the plus side, we are seeing lots of inflation so the amount we finance and spend to buy something now is likely to be much less than if we wait.

[Grit_dog]

^Which hopefully starts narrowing the competition and lowering the prices here real soon!

Hopefully in time to score a good deal on another camper for this summer…
Gonna be tough going on prices though until the unemployment rate rises.

[deltabravo]

Here's the current rates for a credit union I use in Washington:

APR* Loan Amount** Max Term (months) Vehicle Age
6.99% No Minimum 60 2019+
7.74% No Minimum 84 2019+
8.24% $25,000+ 120 2019+
8.49% $50,000+ 180 2019+

THere's NO WAY I'd finance an RV purchase at today's HIGH RV prices combined with the high interest rates.

[Rocky2]

My current RV offered an additional $5k off if I financed through them. When I read the contract, there was no prepayment penalty so I financed it for one payment and then paid it off. For the $170 interest I paid, I saved $5k off the selling price. It's not always about interest rates or monthly payments, it's what does it really cost.

[3_tons]

Lot of folks go the home equity route, but fighting excess money printing caused inflation requires a forced dampening of the economy, which leads to higher prices, which leads to less demand, which leads to the metric (per the economist Phillips Curve) of strategic unemployment…Lots of dynamics, but discretionary purchases are typically the first casualty…

3 tons

[Grit_dog]

Looks like cheap used upside down sellers in the future!
Was hoping for cheap this year but aint lookin like it yet. Recession is slow to get rolling, unfortunately…

[mellow]

With loan terms on RVs going out to 20 years people see the low monthly payment and sign the papers. Most don't care about the % as long as it meets the monthly payment they can "afford".

[mkirsch]

mkasner wrote:
Anyone looked at RV loan rates lately! For 800+ credit scores 8% or more! Even through local credit union. Who is buying these over priced RVs with these rates?

Most people only look at the monthly payment number, and the salespeople encourage it.

When the salesman starts pulling the, "It's only $X59 a month!" (pay no attention to the fact that you're paying sticker price and I'm giving you nothing for your trade) bit, they've lost me.