$100,000+
6.74% fixed 20 years
$50,000 - $99,999
6.85% fixed 15 years
$25,000 - $49,999
7.99% fixed 15 years
You’ve shopped for the best rates on an RV loan. Now you need to consider buying an RV Waranty after your RV loan and purchase. Your Recreational Vehicle is a major investment; sometimes nearly as much as your home, or even more! Extended RV Service Contracts, or “Warranties” as they are commonly referred to, are an excellent way to protect your investment. There are however, many things you should know about warranties in general, as well as the various companies that provide and administer them.
Most experienced RV’ers will tell you that a good rv warranty is like a gun… It is better to have it and not need it, that to need it and not have it. Hopefully you aren’t offended by the analogy, but it makes the point. You’ll have to bite the bullet (pardon the pun) and write the check for the cost of the warranty, but you’ll only have to do this once. The only checks for covered repairs you’ll be writing during your warranty period (up to 7 years and 100,000+ miles) are for your deductible.
The remainder of this article can be found at: Best Rate RV Warranties under the RV Loans and Warranty Articles Section.
When establishing an RVs value, It is imperative that you properly classify your object RV by its correct year, make, model and added options. Incorrect model classification is the most common mistake in evaluating RVs. Be sure you know the EXACT model number or designation of the RV you are evaluating.RVs models are usually classified by a number, as well as letter designations. (ie: 35RL) the number is usually associated with the overall length of the RV. The letters most often signify a floor plan style. “RL” is most often used to designate a rear living room floor plan. “RK” is used to designate a rear kitchen floor plan.
Some similar model designations may have additional options such as additional slide-outs or in the case of diesel RVs, various horsepower engines.
Be SURE that you know the EXACT model designation when you are evaluating an RV for sale or purchase. A miscalculation in model can cost you THOUSANDS if you are incorrect.
Once you know the essential information, such as year, make, model, etc., you are able to correctly go about the process of evaluation.
NADA, located at www.nadaguides.com is the best ONLINE source for RV values. It’s not exactly the same as the NADA guide that RV dealers use, but we can compensate for that.Typically, the online NADA website will give both LOW and AVERAGE Retail values. While many RV will sell closer to the high value, most consider a bargain to be closer to the average value; or even below.This full article is available at: R.V. Buying and Loans Look under the Articles Heading.
Why are RV Loans Harder than Home or Car Loans?
Most lenders who specialize in RV loans base their approval criteria on different factors than other loans, such as home mortgages and auto financing. Home and car loans are considered to be “necessities”, while RV loans are considered to be more of a “luxury” type loan.
Article continued at: Best Rates on Motor Home Loan vs. Home and Car Loans. Click on RV Articles to read
RV Loan and Financing Rates for October 2006
$100,000+
6.74% fixed 20 years
$50,000 - $99,999
6.85% fixed 15 years
$25,000 - $49,999
8.00% fixed 15 years
$100,000+
6.87% fixed 20 years
$50,000 - $99,999
6.99% fixed 15 years
$25,000 - $49,999
8.12% fixed 15 years
Internet RV Financing – You WILL Save Money!
There is one hard and fast rule that applies to RV Dealer provided financing. He must “pack” (inflate) the “buy rate” (interest rate) on the financing he provides to his customers to earn a profit on the transaction. Once again, he uses this profit to pay overhead, commissions, etc.
1. Should you consider the benefits of financing through your RV dealer? Yes.
2. Are you stuck with the financing and interest rate he quotes? NO
3. Should you consider alternative sources of financing? Definitely!
Shopping for your best interest rate and terms can be just as important as shopping for the right RV, and negotiating your best price. In fact, you stand to save literally THOUSANDS of dollars by simply lowering your interest rate by a quarter of half of a percent.
Internet based RV finance companies normally use most of the same lenders that RV dealers use. It’s simply a matter of overhead and the cost of doing business. Since the Internet based companies generally have lower operating costs; they are able to pass the savings on to you.
Continued at: Internet RV Financing
Current Rates:
$100,000+
6.87% fixed 20 years
$50,000 - $99,999
6.99% fixed 15 years
$25,000 - $49,999
8.12% fixed 15 years
Just as the RV Dealer isn’t your enemy - the Private Seller can be your best friend. They don’t have ANY appreciable overhead built into the sale, other than the cost of their advertising, and/or any repairs or refurbishing to be done to the RV.
The private seller is usually much more motivated than a dealer. They only have ONE unit on which to concentrate their efforts. Many times their sole intention is to rid themselves of the burden of their no-longer-needed RV.
In RARE cases, they are WISELY selling by owner so they can move on to a unit more suited to their present needs and desires. This allows them to sell their RV for a higher price than a dealer would allow them on trade-in, while still offering a bargain to their potential buyers.
Purchasing from a Private Seller can work to your advantage in many ways:
Continued at: Buying an RV from a Private Seller
The first thing you need to know is that the ONLINE valuation guides for RVs are usually much higher than the values in the dealer’s copy of the NADA RV Values guide. In other words, what YOU think your RV is worth is probably much, much higher that what the DEALER will actually allow for it.
This is the same for the automotive, boat or RV industries. The dealer MUST take trade-ins at or below wholesale to ever hope to eventually make a reasonable profit. He must allow for interest payments on his used inventory, commissions to sales people, overhead, and much more.
A typical mid-sized RV dealer will have a monthly overhead of $50,000 to $150,000… or more per MONTH! Believe me, it’s not an easy game. He has laid out millions of dollars to allow you to browse a decent selection of RVs, so please… Don’t think of him as the bad guy.
Continued at: Determining your RV’s TRUE Wholesale Value
The vast majority of individuals who finance their recreational vehicle qualify to deduct the interest on their RV loan as a second home. Not only will you be able to enjoy the benefits of RV travel, you will likely receive a mortgage interest deduction as well.
To qualify, the Internal Revenue Service (IRS) has ruled that:
1. The RV Must be used as security for the loan.
2. The RV must have basic sleeping, cooking, and toilet facilities.
Continued at: RV Loans as a Tax Deduction?
How much can I save by refinancing my existing RV loan?
The answer to this question depends upon several factors. It would depend on how much you could reduce your interest rate. It would also depend on your unpaid loan balance. You would need to weigh the potential savings against the closing costs… if any.
For example: If a loan with $50,000 remaining to be paid at 8.5% interest could be refinanced at 6.25%, you could save over $11,400 in finance charges over the term of a 15 year loan. You could also choose to lower your payments, or lower your repayment term. The choice is yours, but in the case of RV refinancing, there are usually very minimal closing costs. This means that virtually any savings in interest rate make refinancing a smart move.
Continued at: RV Loan Financing
Many people who contemplate financing an RV, or any other high-ticket items such as a boat or private aircraft, are intimidated by the length of the financing term needed for an acceptable payment. Typical financing terms are 10 to 20 years, with 15 years being the most common.
Some consumers choose a shorter financing term and a higher payment simply because of their fear of the longer-term commitment. Even though they obviously know RV owners rarely, if ever, keep an RV for the entire term of their financing, they choose a shorter term. They unnecessarily strap themselves to a higher payment that could strain their budget; should illness, unemployment or other hard times take place.
Continued at: Insider RV Financing Secrets
Statistics show that the 80/20 rule applies to RV sales profits. That means that approximately 80% of all RV’s sold will make a dealer an acceptable profit. How much is that? I can tell you it is measured in the thousands of dollars.
I know… I’ve been in the RV business for years and years.
How about the other 20%? Most of them will fall into the area of “just under the acceptable range”. But, they are still paying the dealer several thousand dollars in profit. Actually, only about 3% of RV sales made in 2004 were at a profit margin that would be considered totally unacceptable to the dealer. In other words, the customer won… and won BIG!
Continued at How to Buy an RV
Low, fixed RV Financing Rates
Up to 90% financing, including tax and license, on new RVs/Motorhomes .
Up to 110% refinancing, based on NADA book values for most used RVs/Motorhomes .
Terms up to 240 months
No pre-payment penalty
Best Rate Boat Loans
$500,000+
Priced Individually
$100,000 - $500,000
5.99% fixed 20 yrs
$50,000 - $99,999
6.12% fixed 15 yrs
$40,000 - $49,999
6.99% fixed 15 yrs
$25,000 - $39,999
7.25% fixed 15 yrs
Best Rate Financial Services
Current RV Loan Rates
10-21-05
$100,000+
5.99% fixed 20 years
$50,000 - $99,999
6.13% fixed 15 years
$25,000 - $49,999
7.25% fixed 15 years