RV Financing

[rknight111]

I'm not buying an RV and not planning any future purchase, just cliched on a google add on this site to Fraser Way RV, to see what these things cost these days. So on a cheap RV for 19900 it 66$ bi weekly +tax. 5.99% APR. $0 Down Payment. 60 Month Term. 240 Month Amortization. OAC.

So you pay the pay the tax and down payment then your paying for 60 months? The math don't work, even at that if 100% financed that's $7920.00, it says its 240 months and that would be $31,680 wth. What a racket, 240 months is 20 years. You kidding me. So someone explain this to me. This is a trailer not a house in 10 years this is worth 1/4.

 

[TylerG]

I'm not buying an RV and not planning any future purchase, just cliched on a google add on this site to Fraser Way RV, to see what these things cost these days. So on a cheap RV for 19900 it 66$ bi weekly +tax. 5.99% APR. $0 Down Payment. 60 Month Term. 240 Month Amortization. OAC.

So you pay the pay the tax and down payment then your paying for 60 months? The math don't work, even at that if 100% financed that's $7920.00, it says its 240 months and that would be $31,680 wth. What a racket, 240 months is 20 years. You kidding me. So someone explain this to me. This is a trailer not a house in 10 years this is worth 1/4.

View attachment 233157

they call it the "never never plan" as in you'll never never get out of it.......

my sister financed a 19 foot trailer this way and she can't sell it because she can't get enough for it to pay the lein off.

We financed ours for 15 years to get the lower payment while Sara was on Mat leave, and since have cranked up the payment to get it paid off faster.

 

[papajake]

Why would you pay 6 percent on a loan now a days

 

[TylerG]

Why would you pay 6 percent on a loan now a days

not everyone is smart enough to go get a LOC at very low %

 

[rhody605]

Yup it's crazy. That interest rate is locked in for the 60months only. Depending which place. End up like a house where it ends up costing almost triple after the 240 months!. That's where they make their money!! Last year during "covid RV craze" dealers didn't want to deal with people paying cash. Make more on the people financing. Wouldn't take drop prices for paying cash. They said they had "people lined up at the door for every unit"...

 

[TylerG]

Yup it's crazy. That interest rate is locked in for the 60months only. Depending which place. End up like a house where it ends up costing almost triple after the 240 months!. That's where they make their money!! Last year during "covid RV craze" dealers didn't want to deal with people paying cash. Make more on the people financing. Wouldn't take drop prices for paying cash. They said they had "people lined up at the door for every unit"...

The crazy part Mike, is that they did.....even Grove RV sold out of everything except their stupidly high end units.

 

[rhody605]

I figure the trend will have to have a bust eventually then units will be reasonably priced on the used market...

 

[Caper11]

I'm not buying an RV and not planning any future purchase, just cliched on a google add on this site to Fraser Way RV, to see what these things cost these days. So on a cheap RV for 19900 it 66$ bi weekly +tax. 5.99% APR. $0 Down Payment. 60 Month Term. 240 Month Amortization. OAC.

So you pay the pay the tax and down payment then your paying for 60 months? The math don't work, even at that if 100% financed that's $7920.00, it says its 240 months and that would be $31,680 wth. What a racket, 240 months is 20 years. You kidding me. So someone explain this to me. This is a trailer not a house in 10 years this is worth 1/4.

View attachment 233157

That’s because its a renewable mortgage.
Thats the game on RV’s

 

[1200]

This is nothing new they been doing this for years .

 

[pfi572]

It’s still crazy . Have a buddy that just bought a motorhome and over the last month and a half he has lost multiple deals as units sold so quick .
He finally picked up one and had to pay full asking at dealer had three other offers to purchase . Unreal .
He has the money so no finance and we couldn’t believe the craziness.
Big purchase dollars don’t seem to be a problem.

 

[LUCKY 7]

We are hoping to upgrade to a newer and slightly bigger RV but figure we will wait till the prices settle down. Keep in mind our local RV tech told us almost every RV built now days is junk. Some are less junkier than others but they are all junk. It is not a question if the roof system will leak, it is when will it leak.

 

[Lightningmike]

Sounds like it would be a good year to sell ours. Wife wants a different one....
Ggrrrr

 

[Rjjtcross8]

The price of new truck campers is insane as well.

 

[Trashy]

Summer of 2004 I bought a brand new 2005 Kingsport 24' from Western RV on St. Albert Trail $215/month for 12 years = about 1.5 times the original price after the term was done. Sold it a last year and have been looking at replacing.

But for the price of a used one, I think we will rent instead for the 2-4 weeks a year it's used

 

[catalac]

And people line up for that crap 19900 new, committed for 31500 over 20 years nuts....

 

[Lightningmike]

Summer of 2004 I bought a brand new 2005 Kingsport 24' from Western RV on St. Albert Trail $215/month for 12 years = about 1.5 times the original price after the term was done. Sold it a last year and have been looking at replacing.

But for the price of a used one, I think we will rent instead for the 2-4 weeks a year it's used

Good idea...... unless I'm trying to sell one .... wink wink. Lol

 

[Lightningmike]

Summer of 2004 I bought a brand new 2005 Kingsport 24' from Western RV on St. Albert Trail $215/month for 12 years = about 1.5 times the original price after the term was done. Sold it a last year and have been looking at replacing.

But for the price of a used one, I think we will rent instead for the 2-4 weeks a year it's used

Come over for a crown apple Trashy and we talk.

 

[ABMax24]

We bought a new one last spring, due to the "must replace" clause of our "purchase value replacement coverage" and it being burnt in a fire at the dealer. Bought the last bunkhouse fifth wheel left in town. Financing rules have changed though, first one we bought in 2018 was basically no questions asked, sign on the dotted line and drive away. The new one required credit check and proof of employment, but no proof of current income.

We weren't going to replace, and then started looking at used, that drove us right back to new. I'm not buying a beat up 10 year old fifth wheel for $45k when I can get the new updated version for $60k.

On that note I highly advise not buying a Hideout, ours lived at the dealer, I made the joke once to the service department that I didn't have to pay storage fees because I just picked up the trailer for the weekend and brought it right back. Apparently not funny in a department full of other customers. Lol. We are much happier with our Jayco Eagle.

 

[catalac]

And the real scam happens when said buyer purchased 19k unit on the hook for 32k gets tired and wants to upgrade in 5 years. They roll in owing 28k and new one is 38K mom wants to upgrade.... dealership values the old 19k unit at 14k people think great we are all equity on payments but unfortunately they really owe 28k dealer says no problem we can roll that debt into the new one and customers roll out with the new 38k unit and the loan payout is 28-14+38+26(interest). = 78k all for a 38k unit.

 

[ABMax24]

And the real scam happens when said buyer purchased 19k unit on the hook for 32k gets tired and wants to upgrade in 5 years. They roll in owing 28k and new one is 38K mom wants to upgrade.... dealership values the old 19k unit at 14k people think great we are all equity on payments but unfortunately they really owe 28k dealer says no problem we can roll that debt into the new one and customers roll out with the new 38k unit and the loan payout is 28-14+38+26(interest). = 78k all for a 38k unit.

That's not how it works. They can't roll in interest for time that hasn't passed, only the principle left owing. Every auto, sled, trailer loan I've ever had is open, and can be paid off at any time without penalty. Only paying the interest for the time that has elapsed starting the day the loan was initiated.