Financing question

I have a question that I’m sure most of you have dealt with. My wife and I are looking at getting a new or used fifth wheel. What are the average loan terms, amount of years financed, between a new or used fifth wheels? Is it similar to auto loans, new usually equals longer terms at lower rates? I know the loan rates will depend on credit scores, I’m just not aware of the terms. I can only find information on motorhomes and not fifth wheel campers.

Thanks,
OTR

Financing varies widely. I've seen loans on new 5th wheels from as few as 5 years up 20 years. I think most are somewhere in between those however.

We financed for 15 years at 9% through M & T Bank. We bought used, so I know the rate is a little higher than if we would've bought new. I think on new ones you can go as long as 20 years. They like to see you put 20% down. I hope we can pay it off before the 15 years is up but I like to keep the payment as low as possible just in case something happens, you never know with this unstable economy.

I'm like lelandpa. I went 10 years on my Sundance TT back in April to keep my payments low, but hope to pay off in about half that. I got a good rate at less than 6%. I had to go with a bank I had never even did business with because the credit union we have been using for 15+ years only finances for a max of 84 months, and it has to be for more than 20K. They would only go 72 months under 20K. Their rate was also higher. I was able to finance enough to cover everything including my tax, tag, and title because I bought it out of state. They didn't want anything down and gave me a check to take 500 miles to the dealer where I bought it. So I would definately call as many places as you can and get the best deal possible. Shopping for the best financing deal is about as intensive as shopping for the best price on your rv. Also depending on your loan type, you can write the interest off just like on your home mortgage. Good Luck and happy camping.

USAA is a good way to go from what I've heard from friends. I think you have to be a current or former member of the military or have a family member that is or has been. A friend of mine went through them about a year ago and got an even cheaper rate than me, and their insurance is a good deal also.

Good Sam Club will also finance RV's but not sure of their terms.

OTR said:

I have a question that I’m sure most of you have dealt with. My wife and I are looking at getting a new or used fifth wheel. What are the average loan terms, amount of years financed, between a new or used fifth wheels? Is it similar to auto loans, new usually equals longer terms at lower rates? I know the loan rates will depend on credit scores, I’m just not aware of the terms. I can only find information on motorhomes and not fifth wheel campers.

Thanks,
OTR

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Each person is different when it comes to arranging financing. Credit Score is really critical now. If your score is above 780 you should not have to pay more than 5%. The banks are getting the money at 3% or less from the fed and typically get 2% above what they borrow at. If you own or have substantial equity in your home, a HELOC loan can be had for 10 to 15 years at reasonable rates.

Know your credit score before shopping for a loan. You get one each year for free. Google "credit score" to get the link to request a score. If you are a member of a credit union they might get you your score.

Thanks everyone for your feedback. I wasn't sure on the amount years a unit could be financed. It looks like 5-15 years is about the norm. As far as credit goes, my wife and I have always been very careful to keep are credit up over the years and it pays off when you want to finance something.

I put nothing down and financed for 20 years because I wanted the lowest payment I could possibly get. In case I'm out of work for any extended periods of time, I didn't want any problems with the Cyclone payments. That being said, I've had it for about a year and a half, so far and on track to pay it off in about 5.

Now, if someone would buy my stick-n-brick in OKC, the Cyclone would be my last loan. I might pay it off in 3! Where are one's friends when you really need them?