Open Roads Forum

Print  |  Close

Topic: RV Loan with 0 Down - Neg Equity

Posted By: markz73 on 01/24/10 12:02pm

I have a 2007 Journey worth $95 for Trade In. Looking to buy a 2010 Phaeton at 27% off MSRP - so $173000. The payoff on my loan is about $128k. Wanted to roll negative equity into new loan and have the price of the Phaeton show as follows:

$173k + $130 loan payoff = $303k-$95 Trade (downpayment) = $208k to finance.

Dealer is saying bank will require between $25k and $40k down. Any way around this?


Posted By: islandtees on 01/24/10 12:08pm

It will never happen.These are the loans that got everyone in trouble in the first place.Stay with your present unit.I dont think you will find any bank that will finance negative equity.


Posted By: soyboy on 01/24/10 12:11pm

Rolling negative equity into a loan is a bad idea, it starts a cycle where you will stay "under water" on your loans. That is a bad situation to be in (as you can currently see). Why not stick with what you have, pay it down so you are not under water and then MAYBE think about purchasing something else. Or better yet, just keep what you have pay it down/off and sleep better at night.


2012 F 150 Platinum, Max Tow SCREW 4X4, Mich LTX MS2, Elec Locking Diff 3.73, Backflip Tonneau, Equal-i-zer Hitch
1999 Airstream Safari 27', Honda EU 2000i, AM Solar 150 setup


Posted By: VintageRacer on 01/24/10 12:13pm

Second mortgage on your house? Cash in your 401K? Bite the bullet and take the money out of your savings account? Sell the old MH privately for $130K? Get the dealer of the new MH to sell it to you for $220K list price "on the table" and kick back the difference to you under the table making it look like there is equity in the deal?

See, lots of ideas...but I think any actual bank is going to want some minimum amount of positive equity in this. I would expect somewhere around 25% or so, but I have never taken a loan for an RV so I am really just guessing.


2005 F250 Supercab, Powerstroke, 5 speed automatic, 3.73 gears.
20 ft race car hauler, Lola T440 Formula Ford, NTM MK4 Sports Racer
1980 MCI MC-5C highway coach conversion
2004 Travelhawk 8' Truck Camper


Posted By: bullydogs1 on 01/24/10 12:16pm

I know everyone says to stay with what you have...and I don't disagree...but you are going to be dead a mighty long time..if you really want this and know you will be upside down for several years with it, you could try Essex loans....people rave about them here...again, only you can decide if you are willing to put yourself into this position...


Stuart and Stella Denning
2016 Entegra Aspire 42RBQ
The 3 Bulldogs (Daisy, Sylvie and Stashie)
2018 Equinox Diesel (TOAD)



Posted By: ugh on 01/24/10 12:25pm

Is there a reason why you have to trade, the one one you have is only 3 years old, so whats wrong with the one you have now?

You could try selling your current rig first, then buy a new rig.


---------------------------------
2001 F250 5.4 3.73
2015 Wildwood X-Lite 262BHXL



Posted By: BuckBarker on 01/24/10 12:53pm

Tony Soprano wouldn't do a deal like that. FORGETABOUTIT!


Posted By: avan on 01/24/10 01:17pm

Sounds to me that the lender has learned a little (not enough) lesson from the previous go go economy. There's a big lesson in there for consumers as well.


Winnebago 30C Aspect
Saturn Vue
My 2016 Summer Trip



Posted By: Georgew48 on 01/24/10 02:03pm

I showed this to my wife who works for a mortgage bank and she thought it was a joke. She said no bank in this economy would make a negative equity 0 down loan on a deprecating asset


2015 Georgetown XL 377 TS 38 foot motorhome.
1929 Model A Ford Sport Coupe
2009 Honda TRX 420FA Red (Hers)
2009 Honda TRX 420FA White (Mine)
1999 Chaparral 2130 SS limited edition ski boat



Posted By: markz73 on 01/24/10 02:14pm

My goal was not to roll a huge amount of negative equity. My goal was to see if the new rig could be discounted enough to allow room for "some" of the negative equity to be rolled in.

Not trying to be funny here, just was wondering if a deal could be "structured" to split the negative equity and make the trade "look" like cash down.

Not looking to dig a deeper hole. I know the danger of negative equity and I've started paying my 07 down significantly starting two months ago. My bonus comprises a good chunk of my income, so I'm looking to use that later this year to eliminate the situation.

Not an irresponsible borrower here. I've counseled others out of doing this with cars when they felt the urge to buy a new one.


Posted By: McZippie on 01/24/10 02:30pm

markz73 wrote:

I have a 2007 Journey worth $95 for Trade In. Looking to buy a 2010 Phaeton at 27% off MSRP - so $173000. The payoff on my loan is about $128k. Wanted to roll negative equity into new loan and have the price of the Phaeton show as follows:

$173k + $130 loan payoff = $303k-$95 Trade (downpayment) = $208k to finance.

Dealer is saying bank will require between $25k and $40k down. Any way around this?


Sure there's away around this; pledge more collateral.


2009 Ford E350 Diesel Cutaway Limo Bus
2010 Jeep JKU Rubicon (Toad)
1942 Bantam T3 Trailer



Posted By: oneolddog on 01/24/10 02:38pm

Markz73:

I if I were you I would already be seriously worried about your financial state. The last thing that you need to do is make it worse. This attitude toward borrowing and debt is exactly what caused the financial mealtdown.

Trim your monthly expenses so you can pay down what you already have not only until you are above water but until it is paid off. Even when it is paid off do not borrow for a new depreciating asset unless you have real security in life (ie. real estate paid off).

Adam


2009 Allegro Bus 36QSP (Sold March 2011)


Posted By: bigdogger on 01/24/10 02:48pm

Georgew48 wrote:

I showed this to my wife who works for a mortgage bank and she thought it was a joke. She said no bank in this economy would make a negative equity 0 down loan on a deprecating asset
actually, "negative equity" loans with no down happen over 100 million times a day. They are called credit card transactions and signature loans and installment contracts on furniture, appliances TVs etc. The OP is upside down on his motorhome and that won't change if he keeps his current rig or trades to something else. If the OP really wants to trade and has good income, credit, stability and so on he should consider taking out a signature loan (even a low interest credit card advance)to cover the down payment. He could have a shorter amortization on that loan than on the RV and would begin to chip away at his negative equity faster. In the big picture debt is debt (though he will lose any interest deductability on the signature loan or card advance). He will not win any money management of the year award, but he lost that when he bought the first RV. RVs are all about quality of life and nothing about smart money management.


Posted By: markz73 on 01/24/10 03:08pm

No way I would take out additional debt to cover negative equity. I am paying my current one down big time. I have a good interest rate on it and it is simple interest so all of the extra $$ goes to principal.


Posted By: Archie Kravitz on 01/24/10 03:19pm

Am I seeing this rite? You want to borrow $208,000 on a new coach that is worth $173,000 that will only be worth about $125,000 this time next year. The taxes will bury you.

Are you nuts?
I would look at a slightly used one


Posted By: 427435 on 01/24/10 03:28pm

bigdogger wrote:

actually, "negative equity" loans with no down happen over 100 million times a day. They are called credit card transactions and signature loans and installment contracts on furniture, appliances TVs etc. The OP is upside down on his motorhome and that won't change if he keeps his current rig or trades to something else. If the OP really wants to trade and has good income, credit, stability and so on he should consider taking out a signature loan (even a low interest credit card advance)to cover the down payment. He could have a shorter amortization on that loan than on the RV and would begin to chip away at his negative equity faster. In the big picture debt is debt (though he will lose any interest deductability on the signature loan or card advance). He will not win any money management of the year award, but he lost that when he bought the first RV. RVs are all about quality of life and nothing about smart money management.



The credit cards charge 18-24% (or more) interest, however. That's how they make money even when some "signature loans" go bad.


Mark

2000 Itasca Suncruiser 35U on a Ford chassis, 80,000 miles
2003 Ford Explorer toad with Ready Brake supplemental brakes,
Ready Brute tow bar, and Demco base plate.



Posted By: RVingGreyhound on 01/24/10 03:53pm

markz73 wrote:

I have a 2007 Journey worth $95 for Trade In. Looking to buy a 2010 Phaeton at 27% off MSRP - so $173000. The payoff on my loan is about $128k. Wanted to roll negative equity into new loan and have the price of the Phaeton show as follows:

$173k + $130 loan payoff = $303k-$95 Trade (downpayment) = $208k to finance.

Dealer is saying bank will require between $25k and $40k down. Any way around this?


The current MH depreciation will be smaller than the new one. You are already underwater. These are high priced toys for fancy camping. Either of these MH's are fancy camping in my book. If you want to dig yourself a deeper hole please let us know which bank gives you the loan so I can consider shorting their stock.


Posted By: bigdogger on 01/24/10 04:09pm

427435 wrote:

bigdogger wrote:

actually, "negative equity" loans with no down happen over 100 million times a day. They are called credit card transactions and signature loans and installment contracts on furniture, appliances TVs etc. The OP is upside down on his motorhome and that won't change if he keeps his current rig or trades to something else. If the OP really wants to trade and has good income, credit, stability and so on he should consider taking out a signature loan (even a low interest credit card advance)to cover the down payment. He could have a shorter amortization on that loan than on the RV and would begin to chip away at his negative equity faster. In the big picture debt is debt (though he will lose any interest deductability on the signature loan or card advance). He will not win any money management of the year award, but he lost that when he bought the first RV. RVs are all about quality of life and nothing about smart money management.



The credit cards charge 18-24% (or more) interest, however. That's how they make money even when some "signature loans" go bad.
I have three that I use and all charge 7.9% or less. The biggest charge to me would be the 2 to 3 percent transaction fee for a cash advance. I am not recommending that it would be a smart decision, but if he had credit access similar to what I have available, he COULD do the deal and the interest rates wouldn't be obscene.


Posted By: msmith1199 on 01/24/10 04:12pm

VintageRacer wrote:

Get the dealer of the new MH to sell it to you for $220K list price "on the table" and kick back the difference to you under the table making it look like there is equity in the deal?


Get convicted of a felony and go straight to jail.


2004 National Tropi-Cal T-350, Class A, Triple slide, 330 HP Cat DP.
2017 Jeep Wrangler Sport



Posted By: RVingGreyhound on 01/24/10 04:30pm

markz73 wrote:

I have a 2007 Journey worth $95 for Trade In. Looking to buy a 2010 Phaeton at 27% off MSRP - so $173000. The payoff on my loan is about $128k. Wanted to roll negative equity into new loan and have the price of the Phaeton show as follows:

$173k + $130 loan payoff = $303k-$95 Trade (downpayment) = $208k to finance.

Dealer is saying bank will require between $25k and $40k down. Any way around this?


I've decided you need a different type of answer in addition to my previous answer.

Life is not about the STUFF. A bigger better RV, car, house, etc will not make us happier. Go camping and talk to the people in pop ups and small trailers. I think you will find most of them enjoying life.

I have a Tiffin Red on order and if you do get a Phaeton it will be nicer than my Red, but will you be happier than I am. I currently do not own an RV and would have been very happy with lots of used MHs I looked at, but did not like the price they wanted.

I'd seriously focus on the enjoying RVing that many people out there seem to understand if I were you. I am really excited about my RV getting here, but realize many other things are more important. If I could have only afforded a pop-up I would still be thoroughly looking forward to the adventure.


Posted By: Harvard on 01/24/10 04:47pm

Send me $500.00 and I will tell you where to go! [emoticon]






Posted By: AZPops on 01/24/10 05:01pm

BuckBarker wrote:

Tony Soprano wouldn't do a deal like that. FORGETABOUTIT!


Unless You owed Him the Moneys….

Pops

How the deal sheet should/would look at the dealer is;

1. Retail price of the New Unit (they may even pad it a bit).
2. (minus) Trade In appraisal (actual appraised value), plus the New Unit Discount (inflating the trade's value).
3. (plus) Sales Tax based on the difference, plus licensing, Documentation fees, etc., etc.
4. (plus) Trade Payoff
5. Financed Amount (which the lender will be qualifying the loan. Regarding no money down or what they want as a down payment).

6. Once the dealer has you qualified, and all is a go on your part. This is when the smack you (try to sell you extras) when closing the deal by the finace mgr.. IF the loan quilfication is tight, they may not be able to sell you some of the extras.

This is a crude example (base on a automotive sales sheet), but how dealer’s hide a customer’s the negative equity.

Good Luck with what ever you decide,

Pops

* This post was edited 01/24/10 06:34pm by AZPops *


Posted By: HTALLEN on 01/24/10 05:02pm

We just don't seem to learn much from history....


1997 Southwind 32 VS,Banks,SafeTPlus,Bilsteins,Henderson Trac Bar
3 maniac poodles..Mozart (RIP 10/6/10),Ziggymonster,Nickolas
Honda Civic


Posted By: Herculez on 01/24/10 05:03pm

Markz73,

I think you have made a great post and do hang in there.

The members do want to help you, I can assure you of that.

I think it has been several months since I have been on the forum. I picked out your post because I thought it was a good one.

So please keep us all posted as to what you decide to do.

While you are making up your mind, I would like to see if you would take a look at the Newmar 2010 Mountain Aire. I just for some reason would like to know your thoughts.??

To comment on your question I would like to tell you what I have decided to do.

I have had some strong thoughts to going to a Class A. We have made the decision to continue to pay down to completely pay off our Rig.

My goal has always been to keep any thing that I buy under the wholesale value. So we do sit well under whole sale on the Freightliner and also on the Fifth wheel.

Now having said that, I also know that inflation is around the corner. So interest rates will rise.

Back to the Newmar Mountain Aire, Take a look at what the 2008,2009 list price were on them.

Members that know this, help me out here. 2008,2009...$500,000.00 plus.
If I recall correctly the 2010s are at $400,000.00 give or take.

I posted this info for you because my feelings...Not based on facts as I usually like to do is that we may see RV's drop in price for a while.

God Bless, and thanks for the good post!
Britt







Posted By: Linthead on 01/24/10 05:17pm

With negative equity...yes. With zero down...I doubt it.

I have read all the responses about how burying negative equity in a new loan is not advisable. Well, I think it all depends...

First off, negative equity is negative equity no matter which loan it is associated with. What, if any, is the difference in interest rates between your old loan and a new one???

Secondly, its really a question of how much additional negative equity you will be building with the new coach and it's selling price...because the rest of it you already own...

Finally these guys don't pay my bills and they arn't going to pay yours either...

But i still think you will find it hard today to get a bank to do a zero down deal.


Linthead
2007 American Coach Tradition 42V
2008 Hummer H3


Posted By: time2roll on 01/24/10 09:15pm

Make double payments(or greater) for two years and then see where you are at.


Posted By: thunderstruckhd on 01/24/10 09:23pm

msmith1199 wrote:

VintageRacer wrote:

Get the dealer of the new MH to sell it to you for $220K list price "on the table" and kick back the difference to you under the table making it look like there is equity in the deal?


Get convicted of a felony and go straight to jail.


Exactly, but no reputable dealer would do it. I'm always amazed at the opinions and sugestions, not to mention the lectures some of these posts receive...


Prevost H3-45 Featherlite Vantare
500HP Series 60 Detroit Diesel
Assorted trailers,toys and toads
And Zoie the Doberman.(01/26/01 - 07/23/11) R.I.P.



Posted By: Redapple on 01/25/10 12:26am

Mark,

I don't know your current situation, but it sounds like you have or will have money later to reduce or eliminate the situation created from your anticipated trade. Work with the dealer and the bank. I know the bank will give it up as long as you can prove you are a good risk. Ask them what documentation you might need to satisfy risk mitigation, and work it out to be a shorter term loan. If you work with the bank and the dealer, and the situation is as you describe, and you can prove it to their satisfaction, they will do it.

I just have one question. Do you really want to owe 300k for a MH (even if it is for the short term)?

Good Luck,
Bill


2006 Damon Daybreak 32ft
2007 Honda Accord Hybrid




Posted By: topflite51 on 01/24/10 11:52pm

Of course anything is possible, but at what cost? I would be willing to bet there is a lender out there that would do it but the interest rate and fees would be quite prohibitive. Late fees would probably incorporate some kind of bodily injury. Loan default probably would be even worse.[emoticon]

In otherwords, stick with what you got until you can make a deal that makes sense.


">David
Just rolling along enjoying life
w/F53 Southwind towing a 87 Samurai or 01 Grand Vitara looking to fish
Simply Despicable ">
Any errors are a result of CRS.">


Posted By: BobR on 01/24/10 03:10pm

I am surprised you could even get financing with $40k plus trade. I guess the banks haven't learned much over the last 1-2years!


Posted By: moisheh on 01/25/10 06:08am

What part of " I cannot afford to keep up with Jones's" do you not understand? Basic math and common sense should prevail. You cannot afford the unit you have now yet want to trade up?? I dont care what you do with the figures, it does not compute.

Moisheh


Posted By: JTHarley on 01/25/10 06:41am

PackerBacker wrote:

markz73 wrote:

..................
......... My bonus comprises a good chunk of my income, so I'm looking to use that later this year to eliminate the situation.

Why not wait until then?


"I would gladly pay you tomorrow for a cheesburger today".

I know you REALLY want to do this deal but waiting until you actually get the bonus isn't a bad idea........


Jim , MJ & Spirit of Sambuca Bear
2015 Dynamax DQ320XL
Jeep Sahara Toad



Posted By: Sea Dog on 01/25/10 07:50am

A classic case of spending money that one cannot afford to impress people that they do not know.


Life is short,Death is long,
Take a vacation.


Posted By: msmith1199 on 01/25/10 11:47am

moisheh wrote:

What part of " I cannot afford to keep up with Jones's" do you not understand? Basic math and common sense should prevail. You cannot afford the unit you have now yet want to trade up?? I dont care what you do with the figures, it does not compute.

Moisheh


I don't recall him ever saying he can't afford the unit he's in now. I can't afford to pay off my motorhome right now and I'm upside down in it, but I'm perfectly capable of making the current payments. Does that mean I can't afford it?


Posted By: msmith1199 on 01/25/10 11:50am

Sea Dog wrote:

A classic case of spending money that one cannot afford to impress people that they do not know.


Where do you guys come up with this? You have no idea of this guys current financial situation. Clearly he'll have to have the income to justify the payments on the new motorhome so obviously he'll have to prove to the bank he can afford it. I traded in my gas rig for a DP and moved the negative equity over to the new rig. I knew exactly what I was doing and I could and still can afford it. I did it back in 2004 when banks were allowing that and I'm still perfectly capable of making the payments.


Posted By: coolbreeze01 on 01/25/10 11:54am

I hope it works out for the OP, but I can't get Clark Griswold waiting on his Christmas bonus out of my mind. Good luck.


2008 Ram 3500 With a Really Strong Tractor Motor...........
LB, SRW, 4X4, 6-Speed Auto, 3.73, Prodigy P3, Blue Ox Sway Pro........
2014 Sandsport 26FBSL


Posted By: msmith1199 on 01/25/10 11:54am

markz73 wrote:

I have a 2007 Journey worth $95 for Trade In. Looking to buy a 2010 Phaeton at 27% off MSRP - so $173000. The payoff on my loan is about $128k. Wanted to roll negative equity into new loan and have the price of the Phaeton show as follows:

$173k + $130 loan payoff = $303k-$95 Trade (downpayment) = $208k to finance.

Dealer is saying bank will require between $25k and $40k down. Any way around this?


What you have learned here is you can't ask a simple question without people trying to get all over your private financial business. The simple answer to your question, is you probably won't find anybody to do this type of financing anymore. It used to be common, but I don't think it will happen now.


Posted By: Buck62 on 01/25/10 03:58pm

markz73 wrote:

I have a 2007 Journey worth $95 for Trade In. Looking to buy a 2010 Phaeton at 27% off MSRP - so $173000. The payoff on my loan is about $128k. Wanted to roll negative equity into new loan and have the price of the Phaeton show as follows:

$173k + $130 loan payoff = $303k-$95 Trade (downpayment) = $208k to finance.

Dealer is saying bank will require between $25k and $40k down. Any way around this?


The bank is asking for 25-40K down which is basically eliminating your negative equity. In the past it was common practice for dealers to sell the boat, car or RV at MSRP to cover negative equity which was actually just playing with numbers so you could drive away with that brand new toy owing more than it was worth. The negative equity was just rolled over into the new loan and when the buyer could not pay for it the bank ended up with something they could not sell for what it was worth. Now thankfully, banks are not winking at the dealers and approving these loans. The banks want to make sure you have sufficient equity that if they have to take it back they can get their money back. My advice is pay cash or at least put down 50-75% so you have a nice payment cushion.


Posted By: Oilman on 01/25/10 04:14pm

msmith1199 wrote:

VintageRacer wrote:

Get the dealer of the new MH to sell it to you for $220K list price "on the table" and kick back the difference to you under the table making it look like there is equity in the deal?


Get convicted of a felony and go straight to jail.


Why is it a felony? I think dealers call it a Rebate..


Posted By: Don Don on 01/25/10 06:36pm

No way around. The bank will not loan that much on Neg equity.






Posted By: StanleyandIris on 01/25/10 09:08pm

My friend, I do not think there is any way around the situation. You may just have to wait until your bonus comes in to buy the new MH, borrow against the equity in your S&B house or put up a CD as collateral. I know you want it NOW, but to get it NOW, you will have do make it happen with other security for the bank.

I guess your 3 year old MH is not worth more what you owe on it so selling it is not an option?

I wish you the best.

Iris


Posted By: darver on 01/25/10 09:12pm

"Back to the Newmar Mountain Aire, Take a look at what the 2008,2009 list price were on them.

Members that know this, help me out here. 2008,2009...$500,000.00 plus.
If I recall correctly the 2010s are at $400,000.00 give or take.

I posted this info for you because my feelings...Not based on facts as I usually like to do is that we may see RV's drop in price for a while."

They are moving the Mountain Aire down scale for 2011. Going to a Mountain Master chassis instead of the K2 and a ISL Cummins instead of a ISM. NO 45Ft floor plans and also will soon be on a Freightliner chassis.

Thanks, Daryl


2008 MADP 4521
2009 G37S Coupe Toad


Posted By: msmith1199 on 01/25/10 10:25pm

Oilman wrote:

msmith1199 wrote:

VintageRacer wrote:

Get the dealer of the new MH to sell it to you for $220K list price "on the table" and kick back the difference to you under the table making it look like there is equity in the deal?


Get convicted of a felony and go straight to jail.


Why is it a felony? I think dealers call it a Rebate..


Because you are providing false information to the bank. Dealers can't offer a rebate like this. It's straight up bank fraud and if it's a Federally insured bank it's a federal crime for both you and the dealer. This is my job right now, I know. Not committing bank fraud, but putting people in jail for bank fraud.


Posted By: emzee on 01/26/10 12:24am

wow this thread went every which way, very entertaining. Bottom line for the OP is banks have tightened the purse strings, any loan is harder to get.

A couple of posts mentioned using your sticks and bricks home for its equity. At least this would be deductible and could be paid back quickly with your bonus if you didn't want to carry it. Good luck.


Posted By: RandyP77 on 01/26/10 05:54am

Being underwater in your loan is not big deal, but I have to agree. Taking out a loan today is much different then what it was a few years ago...I think any bank looking at the deal you want to do now would require you to put enought money down to break even on your old coach loan....And remember that new Tiffin is no longer worth 173K the minute you drive it off the lot so you will still be underwater on your new coach from day one even after getting rid of the old loan...I dont know if spending all that money just to break even on your old coach is worth it unless you feel you have some major issues that might arrise with the coach you have now and you just want to dump it

* This post was edited 01/26/10 06:06am by RandyP77 *


Posted By: Sea Dog on 01/26/10 07:04am

A long time dealer here in S central Florida recently folded.
A salesman who had been with them for years said that as soon as the banks stopped lending to those who were either iffie or could not afford, sales dried up.
My mother used to say that my eyes were bigger than my stomach when I put too much on my plate.
I guess the same thing holds true when buying toys.


Posted By: -Gramps- on 01/26/10 07:06am

0 down is not an option anymore negative equity or not. I did it with my first coach five years ago, I couldn't with my second one eighteen months ago. I paid all taxes, and fees up front.


___________________________________________
Fulltimer in 08 Holiday Rambler Vacationer 38PLT Workhorse UFO GAS Pusher Chassis
06 Saturn Vue toad, SMI Breaking sys,Blue Ox tow bar.
My Random Views Blog



Posted By: VintageRacer on 01/26/10 07:44am

msmith1199 wrote:

Oilman wrote:

msmith1199 wrote:

VintageRacer wrote:

Get the dealer of the new MH to sell it to you for $220K list price "on the table" and kick back the difference to you under the table making it look like there is equity in the deal?


Get convicted of a felony and go straight to jail.


Why is it a felony? I think dealers call it a Rebate..


Because you are providing false information to the bank. Dealers can't offer a rebate like this. It's straight up bank fraud and if it's a Federally insured bank it's a federal crime for both you and the dealer. This is my job right now, I know. Not committing bank fraud, but putting people in jail for bank fraud.


Guys, I was kidding! there is no "sarcasm" button! geez...[emoticon]


Posted By: PUCampin on 01/26/10 08:43am

Wow, and I felt horrible abour rolling $11K negative equity into my Expedition when my family unexpectedly outgrew the Explorer (3 kids under 3 DO NOT fit in an explorer!) Even two years ago, Ford Credit would not consider doing a zero down loan with negative equity. We paid below invoice for the Expedition because it was an undesireable package for our area and a left over (it had been sitting on their lot a looong time), and they gave us going value for the explorer (which sucked because the SUV market had tanked) we had to put 10% down which with th incentives covered most of the negative. Even then it took a couple hours and personal phone calls from the dealer to Ford Credit.


2007 Expedition EL 4x4 Tow pkg
1981 Palomino Pony, the PopUp = PUCampin! (Sold)
2006 Pioneer 180CK = (No more PUcampin!)">

Me"> DW"> and the 3 in 3 ">
DD"> 2006, DS "> 2007, DD "> 2008



Posted By: fiveputt on 01/26/10 09:14am

This is not specific to the OP topic but yesterday we were rejected for a refinance on our stick home. We are retired couple with a FICO score in the 800's with no debt and approx 1.2 mil in investments but cannot secure a 15yr mortgage(7yr arm expires 6/2011) for $177,500 with a LTV of 45%. We could show future income for 2 and 1/2 years(deferred comp) but couldn't meet the 3 year requirement. I think that the money people have a lot to do with the softness of this pending recovery.

We will figure something out but zero down or other exotic financing vehicles do have an impact on the credit worthy consumers.

And for the the people that would say just pay if off, our AGI is high enough that any 401K or IRA distributions tax is punishing. Time to be flexible, I guess.


Charlie,Helen,beagles Riley & Megan
07 Sun Voyager 38'
07 Saturn Vue, Blue Ox Aladdin and Brake Buddy



Posted By: time2roll on 01/26/10 11:47am

No possible way would I use my stick home as collateral on an RV. IMO the financing must be supported by the asset purchased or no go. There is more to life than keeping debt at the max. Something needs to be cut to pay extra on that existing loan.


2001 F150 SuperCrew
2006 Keystone Springdale 249FWBHLS
675w Solar pictures back up


Posted By: time2roll on 01/26/10 12:08pm

RC, the general advice is for the OP and it would appear he does not have the cash to buy outright. The OP has a 2007 and if he paid as you did this would not be an issue.

I am glad it worked out good for you in your case. I still would not do it.


Posted By: RCtime on 01/26/10 12:24pm

smkettner wrote:

RC, the general advice is for the OP and it would appear he does not have the cash to buy outright. The OP has a 2007 and if he paid as you did this would not be an issue.

I am glad it worked out good for you in your case. I still would not do it.



Of course--you are correct.


Ron
2002 34HD Winnebago Journey DL, Cat. 330/freightliner
2013 Honda CRV - Garmin 1490t
Great wife & Cavalier King Charles Spaniel, RIP
TT/N


Posted By: Herculez on 01/26/10 05:57pm

darver wrote:

"Back to the Newmar Mountain Aire, Take a look at what the 2008,2009 list price were on them.

Members that know this, help me out here. 2008,2009...$500,000.00 plus.
If I recall correctly the 2010s are at $400,000.00 give or take.

I posted this info for you because my feelings...(Not based on facts as I usually like to do) is that we may see RV's drop in price for a while."

They are moving the Mountain Aire down scale for 2011. Going to a Mountain Master chassis instead of the K2 and a ISL Cummins instead of a ISM. NO 45Ft floor plans and also will soon be on a Freightliner chassis.

Thanks, Daryl



Daryl,
Thanks for making that post. While on vacation I took a quick look at the 2011 Mt Aire.

I do like the awing system on the 2011, I am sure you are familiar with it.

They did make some improvements on the inside but I did not like what they did with the rear bath...Closet. I was also told the paint job was a upgrade.

So I believe they are using the Dutch Star chassis.

Your MT Aire was close to the list price of the Essex, but without the full length awning system (top cap) which hides all the ac units up top.

Newmar is trying to bring the list price of the Mt Aire down to be more of a true middle range between the Dutch and the Essex. However some sacrifices have been made for doing so.

Newmar has done a good job of staying in business and is a cash company.

I do hope that the OP comes back to keep us posted on his thoughts.

Thanks again for your infomation.

Britt



Posted By: River_Rat on 01/26/10 08:04pm

Figure that a depreciating asset like a motorhome will be worth 50% of what you pay for it in 5 years.

Like others have said...pay down the one you have. Rolling negative equity into a new unit is not what you want to do...even if you can find a sucker (bank) to carry the paper.


Scott
1994 Fleetwood Bounder 32


Posted By: PackerBacker on 01/25/10 03:15am

markz73 wrote:

..................
......... My bonus comprises a good chunk of my income, so I'm looking to use that later this year to eliminate the situation.

Why not wait until then?


Eric
2014 Enterra 314RES (Cruiser RV) TT, Equal-i-zer 12K, Honda 2000 Genny
2014 Ram 1500 Quad Short Bed, 5.7L Hemi, 8 speed auto, 4x4, Line-X
FQCC/Camping Quebec, KOA, Good Sam


Print  |  Close