Go to previous topic
Go to next topic
Last Post 03 Mar 2011 04:14 PM by  Foglght
Financing an RV Question
 6 Replies
Author Messages
David Pintaric
Veteran Member
Veteran Member
Posts:1039


--
25 Feb 2011 09:53 AM
    Anyone have any experience with this...?

    I am buying a used RV, actually a toterhome and liftgate trailer, and decided to look into financing the package.

    Here's what surprised the heck out of me: the company that arranged the financing thru two seperate banks wants to charge me a 3.50% "origination fee." On top of that the amount is calculated on the purchase price, not the amount I finance.

    I found this rather odd, and wanted to see if anyone knew if this was normal in that arena.
    Ryno
    Basic Member
    Basic Member
    Posts:259


    --
    25 Feb 2011 12:14 PM
    Sounds like a ripoff to me, typically credit unions have pretty good rates with no loan origination.
    snaponbob
    Veteran Member
    Veteran Member
    Posts:2862


    --
    25 Feb 2011 04:29 PM
    Sold cars for 8 years. THAT is a PURE rip off. Go to your own bank. I will tell you that the financial environment for RVs can be tough (according a a few in the RV business that I know).
    jdchristianson
    Basic Member
    Basic Member
    Posts:416


    --
    25 Feb 2011 09:48 PM

    I agree with Bob, I'd bet if you start shopping them and getting quotes from your own bank they will get more competitive.


    snaponbob
    Veteran Member
    Veteran Member
    Posts:2862


    --
    25 Feb 2011 11:36 PM
    Not long ago I was at an RV store that USED to sell coachs, but quit doing so to focus on just trailers. The reason? They were seeing banks require 30-50% equity in the deal (cash or actual cash trade value) to touch a motor coach loan. So they said f#ck it. My knows an RV salesman at her church, and he is still seeing this. Those that can pay cash, and many others are forced to find their own financing.
    David Pintaric
    Veteran Member
    Veteran Member
    Posts:1039


    --
    01 Mar 2011 02:52 PM

    Well, I learned more on this and came to a resolution with the broker.

    Toterhome financing is like a thinly-traded stock. Not all lending sources with finance it as most do not understand what the vehicle is. So this company, which arranges financing with banks that know these loans, has a mini-monopoly (not using this term derisively), and hence his fee is higher than a standard RV loan (which is typically 1%). The banks are not "rebating" any fee to him, so his fee is his compensation.

    We talked and came to a resolution that is acceptable to me. His company provided value to me, so I didn't want to to just walk away, but the initial fees were higher than I thought reasonable.

    Foglght
    Advanced Member
    Advanced Member
    Posts:794


    --
    03 Mar 2011 04:14 PM
    Dave,

    I didn't buy a toterhome thing like you have, but I did just purchase a new RV/toyhauler for the racecar. I ended up with a 15yr. loan through Chemical Bank. I think it ended up being 6.5% interest. Looks like your situation is different though.


    ---