Reply
 
Thread Tools Search this Thread Display Modes
 
Old 05-07-2018, 11:18 PM   #1
Winnebago Camper
 
Join Date: May 2018
Posts: 20
Please help, I can't find interest rates below 6%

I'm about to purchase a TT and I'm a bit shocked at the interest rates. Dealer estimates with good credit, should be around 6% and online I can't find any banks that will give a loan for less than 6% unless the term is less than 6 years. Am I missing something? What are typically people's interest rates these days. My car loan in 2016 was 1.75%.
I have great credit but dont see any good options.
I'd like to finance for 12 or more years.
Any info is appreciated.
Filshere is offline   Reply With Quote
Old 05-08-2018, 03:11 AM   #2
Winnebago Owner
 
Ranger Smith's Avatar
 
Join Date: Jul 2012
Location: Where the Rig is Parked
Posts: 238
They consider a RV a luxury item. We also have excellent credit and the best we could do was 6.75% when we purchased our used Winnebago Tour
__________________
Steve and Joy
2011 Itasca Meridian 40u
Where we are now
Ranger Smith is offline   Reply With Quote
Old 05-08-2018, 03:08 PM   #3
Winnebago Camper
 
Join Date: Aug 2016
Location: Des Moines, IA
Posts: 11
We used IRA funds. Was earning very little. Had to pay tax at withdrawal, but would have had to do that anyway. Our "effective" interest rate is extremely low.

Dealer was surprised we were paying "cash" for our 2017 Era 70X. Said many finance for 10+ years. I don't know why one would pay "rent" on money to someone else when you can either have it at no real cost or repay yourself that "rent".....

Nice thing is -- you still have the value of the MH or trailer to recover when you sell. So what did that really cost you?
White Cloud is offline   Reply With Quote
Old 05-08-2018, 03:27 PM   #4
Winnebago Camper
 
Join Date: May 2018
Posts: 8
Quote:
Originally Posted by White Cloud View Post
We used IRA funds. Was earning very little. Had to pay tax at withdrawal, but would have had to do that anyway. Our "effective" interest rate is extremely low.

Dealer was surprised we were paying "cash" for our 2017 Era 70X. Said many finance for 10+ years. I don't know why one would pay "rent" on money to someone else when you can either have it at no real cost or repay yourself that "rent".....

Nice thing is -- you still have the value of the MH or trailer to recover when you sell. So what did that really cost you?
Never thought about this. Wonder how that would work on a boat. Getting ready to buy a new boat and also shopping interest rates. So far our credit union is best at 4.x%. Wouldn't know final until I sign the check as the rate isn't locked in yet. I like this idea not only because of the possible interest rate comparison but it's how I buy my cars and trucks, there is always a lot more "room to play with" when you can walk out and go up the street with a check in your hand. Going to have to look into this myself. I might even be able to get a bigger boat.
Milfox58 is offline   Reply With Quote
Old 05-08-2018, 04:32 PM   #5
Winnebago Master
 
Wayne M's Avatar
 
Join Date: Aug 2008
Location: Texas
Posts: 988
Try Bank of the West. It might also depend on the amount. Lower the amount the higher the interest because they want to get their money's worth.
__________________
Wayne MSGT USMC (Ret) & Earlene (CinCHouse)
2015 Winnebago Tour 42QD 2008 Winnebago Destination 39W
(RVM-14) It is what it is, and then it is what you make of it.
Wayne M is offline   Reply With Quote
Old 05-08-2018, 08:28 PM   #6
Winnebago Master
 
Join Date: Oct 2017
Location: Elk Grove, CA
Posts: 1,682
Keep in mind that, despite the recent declines in the stock market, and depending on your investments, your IRA could be earning more than 5% over the term of your self-financed "loan". There is a real cost to using this money on a long term basis. Additionally, a lump sum withdrawal from an IRA (401k or 403b) could push you into a higher tax bracket, increasing the effective cost of the "loan". Also, keep in mind that, when you sell the RV on the back end, it will be worth significantly less than what you took out of your retirement account.

If you're under 55, you can't withdraw but you can borrow against these tax-deferred plans but there are downsides to this as well (Google it).

Home equity loans are another option.

In my case, we were buying a used motorhome and, coincidently, since I'm over 70 1/2, we were taking the Required Minimum Distribution (RMD) from my tax-deferred investments. Since they are monthly distributions, I took out a home equity loan and am paying it off on an accelerated basis with my RMD payments.

Were I not receiving the RMD, and which I fortunately do not need for current living expenses, I would not have withdrawn money from a tax-deferred account to finance an RV. That money is for retirement.

Even for someone with, say, $100,000 in a non-tax deferred investment, using that money to buy an RV may cost more than a 5% bank loan depending on how it was invested. For example, the S&P 500 10-year average annualized return (including the 2008/2009 "crash" and the recent decline) is about 6.2% (5 year return 10.2%). If you have $100k sitting in bank CDs earning under 3%, it's a different story, although that can change as well.
BobC is offline   Reply With Quote
Old 05-09-2018, 05:01 AM   #7
Winnie-Wise
 
Join Date: Mar 2015
Posts: 395
Try Alliant Credit Union but terms are normally 8 years..................With anything longer you will probably be upside down when you sell it.
__________________
Sue and Tom

2015 Winnebago Vista 36Y
Sue46 is offline   Reply With Quote
Old 05-09-2018, 08:57 AM   #8
Winnebago Master
 
Join Date: Oct 2017
Location: Elk Grove, CA
Posts: 1,682
If the numbers don't work, there's a good chance that you're either paying too much or buying more than you can afford.
BobC is offline   Reply With Quote
Old 05-09-2018, 10:16 AM   #9
Winnebago Camper
 
Join Date: May 2018
Posts: 20
Great discussion. Thanks everyone for your input.
Filshere is offline   Reply With Quote
Old 05-09-2018, 04:10 PM   #10
Winnebago Owner
 
workinrvers's Avatar
 
Join Date: Dec 2012
Location: Black Hills, South Dakota
Posts: 90
We have found that credit unions give the best interest rates over banks.
__________________
Phil and Rudee
'02 Winnebago Journey, '07 Dakota, '11 HD Ultra
https://workinrvers.blogspot.com/
workinrvers is offline   Reply With Quote
Old 05-09-2018, 10:29 PM   #11
Winnebago Owner
 
rgvtexan's Avatar
 
Join Date: Oct 2009
Location: NE WA or S TX
Posts: 225
Bob C=words of Wisdom, listen!
__________________
04 Horizon QD, 12 Ford Flex, Excalibar, Brakemaster, Winter Texan, RVin! since 1974
Norm, Donna & Tinker Kat 74 MGB-GT, 75 MGB, 01 Z3
Life is a Timed Event, you only get One Go Around!
rgvtexan is offline   Reply With Quote
Old 05-10-2018, 10:28 PM   #12
Winnebago Master
 
Wayne M's Avatar
 
Join Date: Aug 2008
Location: Texas
Posts: 988
Quote:
Originally Posted by workinrvers View Post
We have found that credit unions give the best interest rates over banks.
Not necessarily. CU's I check wanted 6% and up whereas bank gave me the load for 4.9% - last November.

To the OP: If you credit score is above 750 and especially if above 800 you should not have a problem but you do need to call around. Go on-line and look at some of the lenders, what they offer and if they are major bank or CU.
__________________
Wayne MSGT USMC (Ret) & Earlene (CinCHouse)
2015 Winnebago Tour 42QD 2008 Winnebago Destination 39W
(RVM-14) It is what it is, and then it is what you make of it.
Wayne M is offline   Reply With Quote
Old 05-16-2018, 04:41 PM   #13
Winnebago Watcher
 
Join Date: Jan 2018
Posts: 4
Quote:
Originally Posted by Filshere View Post
I'm about to purchase a TT and I'm a bit shocked at the interest rates. Dealer estimates with good credit, should be around 6% and online I can't find any banks that will give a loan for less than 6% unless the term is less than 6 years. Am I missing something? What are typically people's interest rates these days. My car loan in 2016 was 1.75%.
I have great credit but dont see any good options.
I'd like to finance for 12 or more years.
Any info is appreciated.
We bought our 2012 Journey 36M in 2013 at 4% for 20 yrs but paid it off early last year. If I were buying today it would be at least 6% just due to interest rate increases. Depreciation on RV’s put it under water for at least 5-10 years so the risk is greater for the lenders. Plus a home on wheels can suffer a loss more easily than a fixed structure. RV’ing is not cheap living; Disney campgrounds are above $150/night now and even a bare concrete or gravel site is usually over $50. Welcome to reality, fuel is approaching $3/gal and RV taxes and registration fees for us are over $2000/yr. You get no breaks in life in an RV but it is still worth it for us to have freedom to wander.
Wayneelowe is offline   Reply With Quote
Old 05-16-2018, 05:08 PM   #14
Winnebago Camper
 
Join Date: Sep 2016
Posts: 12
Quote:
Originally Posted by Filshere View Post
I'm about to purchase a TT and I'm a bit shocked at the interest rates. Dealer estimates with good credit, should be around 6% and online I can't find any banks that will give a loan for less than 6% unless the term is less than 6 years. Am I missing something? What are typically people's interest rates these days. My car loan in 2016 was 1.75%.
I have great credit but dont see any good options.
I'd like to finance for 12 or more years.
Any info is appreciated.
We bought a 2004 Sightseer 30B last year and paid 2.9% with 20% down for 5 years. Dutch point Credit Union.
mazda2924x is offline   Reply With Quote
Old 05-16-2018, 05:09 PM   #15
Winnebago Owner
 
Join Date: Sep 2017
Location: Maine
Posts: 104
Line of credit, interest rate similar to a mortgage. Credit Unions are very good at giving lower interest rates.
MainelyScott is offline   Reply With Quote
Old 05-16-2018, 05:15 PM   #16
Winnebago Master
 
Join Date: Oct 2017
Location: Elk Grove, CA
Posts: 1,682
Quote:
Originally Posted by Wayneelowe View Post
We bought our 2012 Journey 36M in 2013 at 4% for 20 yrs but paid it off early last year.
Congratulations on your financial wisdom past and present so that you could, and did, accelerate the pay-off of your loan.

I can remember waiting in a car salesman's office and overhearing a salesman in the office next door selling a car to a very young couple who I presume were first time buyers. The salesman was using the classic, "tell me how big a monthly payment you can afford and I'll see if I can get you into this car" pitch. It was clear from the conversation that they had no idea of what they were getting into and I wanted to get up, walk over, pull them out of the office and explain things to them.

I've always wondered if they bought the car and, if they did, how long they ended up paying for it.
BobC is offline   Reply With Quote
Old 05-16-2018, 06:14 PM   #17
Winnebago Camper
 
Join Date: Jun 2013
Posts: 21
Just financed $35,000 for a new motorhome thru Bank of America at 4.99%. Financed thru dealer. Credit score over 800.
murphy55378 is offline   Reply With Quote
Old 05-17-2018, 05:38 AM   #18
Winnebago Watcher
 
Join Date: Apr 2018
Posts: 4
We used Good Sam/Bank of the West and ended up at 5.39% for our used RV financing.
__________________
Roadburnz
2015 24NVP
Roadburnz is offline   Reply With Quote
Old 05-17-2018, 07:52 AM   #19
Winnie-Wise
 
Join Date: Jan 2018
Posts: 271
I tend to pay cash for depreciating assets or if I take out a loan it is 3 years or less so can't suggest more than looking at a CU. Depending upon your financial situation a CU might have some other options. As an example my CU home equity loan rate is 4.25%. They also have a share secured loan at 5%. Of course these depend upon having the available equity or enough money in an account to secure the loans. There are also tax changes to consider with the home equity loan. As to RV's my CU won't finance those directly nor accept RV's as collateral. I suspect it has to do with the high depreciation and damage/loss risks.
old_engineer is offline   Reply With Quote
Old 05-17-2018, 02:40 PM   #20
Winnebago Watcher
 
Join Date: Jan 2018
Posts: 4
Quote:
Originally Posted by Filshere View Post
I'm about to purchase a TT and I'm a bit shocked at the interest rates. Dealer estimates with good credit, should be around 6% and online I can't find any banks that will give a loan for less than 6% unless the term is less than 6 years. Am I missing something? What are typically people's interest rates these days. My car loan in 2016 was 1.75%.
I have great credit but dont see any good options.
I'd like to finance for 12 or more years.
Any info is appreciated.
You might try a Credit Union. I got a loan for 4.99% over 6years
rfoster46 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Can you find the discrepancy? motohomo Plumbing | Systems and Fixtures 14 01-05-2017 09:46 AM
Basement A/C removal by Duner, can't find, need help. FIRE UP General Maintenance and Repair 24 06-12-2014 04:52 PM
Removing plastic cover Below TV/ Amplifier colemole General Maintenance and Repair 6 09-26-2011 05:15 PM
High interest rates on MH? rocketpod Winnebago General Discussions 16 04-24-2011 06:30 PM
where can I find an old floorplan ,,,>? WALLY NJ Winnebago General Discussions 7 11-25-2007 04:35 AM

» Featured Campgrounds

Reviews provided by

Disclaimer:

This website is not affiliated with or endorsed by Winnebago Industries or any of its affiliates. This is an independent, unofficial site.


All times are GMT -6. The time now is 08:47 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×