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 > Travel Trailer Buying/Financing Questions

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rbpru

North Central Indiana

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Joined: 12/18/2013

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Posted: 03/15/19 03:04pm Link  |  Quote  |  Print  |  Notify Moderator

This is a "which is the best beer" question. It is based on the individuals and their needs.

The only advise I give is, the floor plan remains when all else is forgotten or accepted.

We did not know that we wanted, so we took our best guess and rented a similar model for 10 days on the road.

After that, we had a far better feel for what we could tow, park and afford. We ended up buying a three year old, 25 ft. TT. That was 35,000 miles and five years ago.

We had been saving for a TT and were able to pay cash when we purchased it. Otherwise, I would have financed it through the dealer or bank, which ever would have given the best deal.

Good luck and remember, buying a TT is not a race.


Twenty six foot 2010 Dutchmen Lite pulled with a 2011 EcoBoost F-150 4x4.

Just right for Grandpa, Grandma and the dog.


delwhjr

TX

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Posted: 03/15/19 03:33pm Link  |  Quote  |  Print  |  Notify Moderator

Ralph Cramden wrote:

delwhjr wrote:



Nothing wrong with going long as long as you don't actually go all the way.
With the lower monthly payment it allows for emergencies. A huge medical bill or catastrophic problem could make a large payment on a short time note difficult or impossible but the smaller payment may still be manageable, keeping your credit clean. Pay off the long note quick(maybe in half the time or shorter), saving interest and prevent being upside down.


Woulda, Coulda, Shoulda.

It seems to me that if one takes out a 15 yr drag and then proceeds to pay off the long term loan quick, maybe in half the time or shorter (7 years or 6 or 5), saving interest and preventing being upside down, that would require you to up the payment from the get go to what it would of been on a 5 or 6 year drag anyway, or close to it?

You then need to have a tuned up crystal ball so you can predict the catastrophic problem you mention will not hit until after year 6 or 7? Or do you wait until year 6, when you'll still owe close to the original amount financed on the 15 year drag, and then make massive payments in the order of minimum + 900% or something, for a year to pay it off.

Not even taking into account typically you get a better rate on a 4 or 5 year loan than you'll get on a 15.


You miss the point. It is not saving money on payments. You would pay close or more than the payment of the shorter term. The use of the longer term is a fail safe point to allow for the POSSIBILITY of those events. Sure it may cost more in a higher % but it may be what a person needs for their piece of mind and the cost of the difference will be less than the bigger hit in your credit if you have to miss/reduce payments.
It is just like insurance, many people feel the need to insure for every little thing. Others will take the gamble on everything or some things. It may not be the best option but it is an option.


2006 Durango HEMI Equal-i-zer
2019 Rockwood UltraLite 2608BSD


Lwiddis

near La Cuesta Encantada

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Posted: 03/15/19 04:15pm Link  |  Quote  |  Print  |  Notify Moderator

I don’t finance any toys.


2015 Winnebago 2101DS TT & Tahoe LTZ, 300 watts WindyNation solar-parallel & MPPT, Trojan T-125s. TALL flagpole for US flag. Prefer USFS, COE, BLM, NPS, TVA, USF&WS, state & county camps. Bicyclist! 14 year Army vet - 11B40 then 11A - old MOS 1542 & 1560.


Lwiddis

near La Cuesta Encantada

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Posted: 03/15/19 04:17pm Link  |  Quote  |  Print  |  Notify Moderator

Any RV you buy, new or used, will require “fixing.”

wanderingaimlessly

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Posted: 03/15/19 05:17pm Link  |  Quote  |  Print  |  Notify Moderator

Since you are looking at payments, one thing to consider. Years ago lenders used a method known as Rule of 78's This is outlawed for loans shorter than 61 months but is still used for longer terms by some lenders.

The trap in this loan is that if you try to pay it off early, you will find that you still owe all or most of the purchase price until deep into the term.
Dealers pushing 84 and even 120 month term loans frequently use this method, thats one great reason to go to your local bank or credit union if possible.
Good Luck

Halmfamily

Munford, AL

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Posted: 03/15/19 05:22pm Link  |  Quote  |  Print  |  Notify Moderator

delwhjr wrote:

For all of you saying "wait and pay cash"; congratulations on being so wealthy.
I guess you paid cash for everything; good for you.

For us poor mortals, the memories and good times are worth a few dollars spent to be able to enjoy sooner than later. No one knows what tomorrow will bring and I will not be one of the "shoulda, coulda, wouldas"

As long as I don't over extend and cause grief from the load it's my business where my money goes.


Well said.


2008 GMC Sierra 3500 SLT DRW D/A 4x4 (Big All)
2006 Ford F350 PSD SRW King Ranch 4x4 (Henry) (Sold)
B&W Companion, 90 Aux Fuel Tank, Scan Gauge II, Curt f/m hitch, Swagman XC
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lbrjet

Gold Canyon, AZ

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Posted: 03/16/19 02:54pm Link  |  Quote  |  Print  |  Notify Moderator

Getting exactly what you want is more important than the month you purchase it. Eveyone wants the best deal and there is no magic formula for that. Shop till you drop, then negotiate the best deal and best financing you can and then enjoy your new trailer.


2010 F250 4X4 5.4L 3.73 LS
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Ride S40T

OK

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Posted: 03/16/19 07:55pm Link  |  Quote  |  Print  |  Notify Moderator

Rjpoog1989 wrote:

Hello all, this is my first post here. I’ve been lurking here a while looking for info on campers. I’m looking to buy a TT for the 2020 camping season and I’m trying to plan my finances accordingly. I’ll start with these three questions and go from there.

1: Do most dealers require a down payment to finance and if so, what % is typically required.

2: From what I’ve observed, it seems the best incentives are in December. Is this an accurate observation? I’m looking to get the best price by buying at the right time.

3: it seems like Camping World has the best prices and selection. Are there reasons not to buy from them?


From our "newbie" buying experience...

Usually no down payment if your trailer is valued more than the asking price, percentage of that can vary.

As stated, incentives can vary. Like autos, end of the month is good. We got a steal in late Oct. They would not let us go! Advantage you as you walk to the door...price will go down.

Camping World experiences vary. Salesman was great and did crunch the numbers on our TV to ensure we could safely tow it. If they don't collect your TV data then I'd be leery of them. They did search rates and got us to 3% financing. The closing was very high pressure for extended warranties which we turned down (explain below). Reaching dealer support (service and parts)? I have a better chance of reaching the President on the phone.

Advise to look often, stalk RV Trader and walk through everything at RV shows. We looked for over a year and when we walked into "the one", my wife and I immediately knew it.

A LOT of great advice for selecting. Our priorities were floor plan and weight (we were not going to have white knuckle travels). Number are VERY important for the safety of you and the fam. Maybe look for something with a dry weight about 60% of TV's rating as loading it will push you to around 75-80% of rating. Focus as much on the TT's GVWR and remain well under it. Stay away from "max" anything where RVs are concerned. Please know manufacturers of TV's can OVERSTATE tow capacity and from our personal experience, TT's dry weight and tongue weights were UNDER estimated. You see the issue. Look for the moderate weight/length and stay safe for the haul. More likely to have a good towing experience as hauling to the site is half the fun for us, admittedly.

Pass on extended warranties. And dealer might push VERY HARD and even seem aghast that you'd turn one down. Please know for most RV manufactures there can be serious lag time and finger pointing when it's time for basic warranty work. Serval threads on how "the repair system" is broke. Not to be a downer on your search for the perfect respite, just passing on a bit of reality. Don't take just my word for it, read the blogs.

Do be ready to work on a few things here and there that would otherwise be covered. We did so we could go camping instead of calling the dealership (who never answers the phone) to find out when the unit will be fixed. Or do your own test...want to buy from "that" dealer? Call their service and parts dept to ask general questions to see if you can even reach a human.


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Gdetrailer

PA

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Posted: 03/16/19 08:53pm Link  |  Quote  |  Print  |  Notify Moderator

Ride S40T wrote:


From our "newbie" buying experience...

Usually no down payment if your trailer is valued more than the asking price, percentage of that can vary.



There is NO such thing as a "trailer" (IE RV) being "valued" more than asking price.

RV manufacturer sets a "MSRP" which is the Manufacturers SUGGESTED RETAIL Price.

RV manufacturer sells the RV to the dealer at "WHOLESALE" price.

Dealer MUST "finance" the purchase from the manufacturer or bank or if they have enough inventory turns and cash on hand buy for cash.

Dealer must turn and burn that RV to get THEIR money out of it AND make some profit after paying interest, operational bills and sales team bonus.

Unlike auto sales, RV manufacturers DO NOT "PUBLISH" that wholesale price and dealers do not release the wholesale price.

So, the purchase price will ALWAYS be MORE than the wholesale price but often less than the MSRP.

So in other words with buying ANY RV, you WILL ALWAYS UNDERWATER with a RV that has LESS "value" the second you sign the title papers.

RVing is a HOBBY and with any hobby you LOSE MONEY, that is just the way it works.

You simply have to decide just how much money you are willing to lose in order to gain some "enjoyment" from that hobby.

A down payment may not be required by the dealer or bank, but it IS ALWAYS A GOOD IDEA to pay a bit ahead via a down payment in order to MINIMIZE your loss. Especially true when ever making use of a loan.

As others have mentioned, you can always pay a little extra towards the PRINCIPLE on the loan, this pays down a lot of interest (which nearly 70% or your first few payments WILL BE INTEREST!!), and you will pay off the loan EARLY.

You can test that scenario out by searching the Internet for AMORTIZATION CALCULATORS.

#1nobby

Barrie, Ontario

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Posted: 03/17/19 07:54am Link  |  Quote  |  Print  |  Notify Moderator

I really think that the key to ANY purchase is a budget....whether you pay cash or finance.

Get a budget in place and stick to it.


On an aside: I purchased a brand new VW for Nobette for her birthday a couple of years ago.

Every September VW has a 5 year 0% down and 0% financing deal.

Even if I had the cash....why would I use it????

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