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Financing Your RV
The purpose of this topic is to give our forum members some TIPS on financing their RV prior to purchase. It is not intended to give any type of financial advice, but give information gleened from our forum members expierences and recommendations. The author of this topic does not recommend any one financial company over another. Now that that is out of the way, here are some things to think about.
Next to your home, this is probably the next largest purchase you will make. For some, it probably is the largest purchase they have made as a couple. So it pays to have as much good information as possible prior to signing on the dotted line.
Often times forum members ask the question: How much should one be able to barter down the dealer when purchasing a Tiffin product. The usual advice is between about 23 – 27% below MSRP. Once in awhile someone will post they did a little better than these figures. So, to put some numbers to an example. On a $150K motorhome, one should be able to get 25% off with a little work. That means paying $112,500 after the dealer discounting it $37,500. Common sense dicates this is pretty good wages for spending some time working at getting the motorhome you desire.
RV Financing Institutions –
RV Financing - www.RVFinancingUSA.com
Essex Credit - www.ESSEXcredit.com
RV Loans - www.eRVloans.com
Financial Underwriter's Network - www.fun-loan.com
Note: In addition to these there are a number of other financial institutions that are available at the following link:
Most folks know this but it is worth repeating. Smart buyers shop around when financing. It pays dividends if one can find the lowest interest rate available. Interest rates are determined by the requested RV loan amount, the age of the RV, and the credit worthiness of the applicant. Assuming one's credit is good then the lowest interest rate should be able to be obtained.
Let’s do a little math again. In our example above, the total price of the Tiffin Motorhome purchase is $112,500. So let’s see if we can save any money by doing a little shopping for a better interest rate. I have prepared a table which indicates the savings that can be realized just shopping for the lowest interest rate. Over the life of the loan, the savings can be very dramatic. Of course one has to also take into account the length of the loan.
| Monthly | Total | Monthly | Total | Monthly | Total | |||||
| Company | Interest Rate | Payment | Loan | Total Int. | Payment | Loan | Total Int. | Payment | Loan | Total Int. |
| 10 Yrs | Amt. | Paid | 15 Yrs | Amt. | Paid | 20 Yrs | Amt. | Paid | ||
| A | 5.75% | $1,235 | $148,200 | $35,700 | $934 | $168,120 | $55,620 | $790 | $189,600 | $77,100 |
| B | 6.00% | $1,249 | $149,880 | $37,380 | $949 | $170,820 | $58,320 | $806 | $193,440 | $80,940 |
| C | 6.10% | $1,255 | $150,600 | $38,100 | $955 | $171,900 | $59,400 | $812 | $194,880 | $82,380 |
| D | 6.25% | $1,263 | $151,560 | $39,060 | $965 | $173,700 | $61,200 | $822 | $197,280 | $84,780 |
| E | 6.35% | $1,269 | $152,280 | $39,780 | $971 | $174,780 | $62,280 | $829 | $198,960 | $86,460 |
| F | 6.50% | $1,277 | $153,240 | $40,740 | $980 | $176,400 | $63,900 | $839 | $201,360 | $88,860 |
Don’t forget the insurance as well as whether or not you want an extended warranty on your new purchase as well as emergency breakdown service? There are also topics in our Library that cover extended warranties and emergency breakdown services.
Submitted by Mike Sundberg - 3/29/06
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