MH Olson Posted January 5, 2020 Report Share Posted January 5, 2020 Hi, all. In the next 2-4 weeks, I'll be trading my compact car (2012 Hyundai Elantra, low miles) for a late-model used SUV with a tow package, as well as buying a late-model used travel trailer. Should I obtain the car loan first, and the RV loan second, or the other way around? My credit is excellent and I have no debt except my mortgage. I'll be putting down 33-40% on each (including my trade-in). My hope, of course, is to get the best possible rate on each loan. An RV dealer advised me to get the RV loan first, but I'm suspicious that that's simply self-serving on his part. What do you think? (Thanks in advance for your feedback and advice!) Quote Link to comment Share on other sites More sharing options...
kurtsara Posted January 5, 2020 Report Share Posted January 5, 2020 According to some on these forums, one should never finance a RV, we should all have enough cash to buy one. Quote Link to comment Share on other sites More sharing options...
MH Olson Posted January 6, 2020 Author Report Share Posted January 6, 2020 59 minutes ago, kurtsara said: According to some on these forums, one should never finance a RV, we should all have enough cash to buy one. That's a really good point. I'd figured it made more sense to finance at 6% or so than to withdraw money from investments that have been earning 8-10%. But finance isn't my strong suit, so I'm going to look further into that trade-off. Putting down 35% or so would make it unlikely I'd ever be underwater on the loan, which I understand is a big concern for those who finance. Great food for thought, and I thank you for responding! Quote Link to comment Share on other sites More sharing options...
NDBirdman Posted January 6, 2020 Report Share Posted January 6, 2020 (edited) LOL, someone must be hitting the sauce like me about now..... hehehe I don't know your financial stats nor do I want to, but here's my 2.4 cents worth. IF you buy the camper, then can't get financed for the tow vehicle, what then? Personally, if I was tight and had to do a loan, I'd get the tow vehicle first. Then forbid something stopping you from getting a camper loan, you will still have the newer vehicle to drive around. Can't drive a travel trailer last I saw. 🙂 Note: I bought my tow vehicle first, waiting til paid off to purchase a bigger/newer camper. We're retired on limited budget so I'm not talking out my backside, just *my* experience/thoughts. Another note, dealers are full of fertilizer. They just want to make a sale. IF they sold this one before you are ready, and I've heard it all before from them, there will be another one down the road when you are ready, maybe just not one that makes them $$ out of your pocket. Good luck! Edited January 6, 2020 by NDBirdman Quote 2022 Coachman Leprechaun, traveling around to dark sky areas and chasing the stars. Link to comment Share on other sites More sharing options...
MH Olson Posted January 6, 2020 Author Report Share Posted January 6, 2020 58 minutes ago, NDBirdman said: I don't know your financial stats nor do I want to, but here's my 2.4 cents worth. IF you buy the camper, then can't get financed for the tow vehicle, what then? Personally, if I was tight and had to do a loan, I'd get the tow vehicle first. Then forbid something stopping you from getting a camper loan, you will still have the newer vehicle to drive around. Can't drive a travel trailer last I saw. 🙂 Note: I bought my tow vehicle first, waiting til paid off to purchase a bigger/newer camper. We're retired on limited budget so I'm not talking out my backside, just *my* experience/thoughts. Another note, dealers are full of fertilizer. They just want to make a sale. IF they sold this one before you are ready, and I've heard it all before from them, there will be another one down the road when you are ready, maybe just not one that makes them $$ out of your pocket. Good luck! Thanks, ND. Thanks to your note on my other post string, I'm looking again at used Class C's that could tow my 4-cyl compact. And yes, I figured that RV dealer was a little full of it. I could already tell by the way he kept pointing out obvious things as we toured various trailers ("the dinette is a SOFA when you REMOVE the table!" "Just LOOK at all this STORAGE!" "The SHOWER has a TUB!") I just nodded my head and had a good laugh when I returned to my car! Quote Link to comment Share on other sites More sharing options...
SWharton Posted January 6, 2020 Report Share Posted January 6, 2020 If you are going to take an RV Loan don't go through the dealer. Look into Alliant(they are RV friendly) CU. Quote Link to comment Share on other sites More sharing options...
Kirk W Posted January 6, 2020 Report Share Posted January 6, 2020 2 hours ago, MH Olson said: That's a really good point. I'd figured it made more sense to finance at 6% or so than to withdraw money from investments that have been earning 8-10%. If you can really do that, then you are probably right, but I highly doubt that you can finance a used RV for 6% and if you can, then you are probably right, assuming that your investments continue at the predicted rate. I strongly suggest that you shop loans first, both with the financial institution where you now do business and several others. If your credit is really as you say it should not matter what loan you do first unless you borrow too much for your ability to pay. But make sure what interest rate you can get before you choose to finance when you do not need to do so. Quote Good travelin !...............KirkFull-time 11+ years...... Now seasonal travelers.Kirk & Pam's Great RV Adventure Link to comment Share on other sites More sharing options...
chirakawa Posted January 6, 2020 Report Share Posted January 6, 2020 Rates at my Credit Union this morning start at 5% for six years on used RV's. Rates increase according to length of loan period. Quote Everybody wanna hear the truth, but everybody tell a lie. Everybody wanna go to Heaven, but nobody want to die. Albert King Link to comment Share on other sites More sharing options...
MH Olson Posted January 8, 2020 Author Report Share Posted January 8, 2020 On 1/5/2020 at 6:47 PM, SWharton said: If you are going to take an RV Loan don't go through the dealer. Look into Alliant(they are RV friendly) CU. Thanks for the advice; I'll check them out. Quote Link to comment Share on other sites More sharing options...
Twotoes Posted January 9, 2020 Report Share Posted January 9, 2020 It is much easier to get an auto loan than an RV loan. I would get the smaller loan with the lower payment (probably the auto) first so as not to get your debt to income ratio out of wack. Let what ever financing institution you are planning to use know about your intentions and maybe you can get pre-approved for both loans at the same time. With a pre-approval it will be much easier to shop for both an auto and RV. Quote 2015 Itasca Ellipse 42QD 2017 Jeep Wrangler Unlimited Rubicon Hard Rock Edition 2021 Harley Street Glide Special Fulltimer Link to comment Share on other sites More sharing options...
MH Olson Posted January 11, 2020 Author Report Share Posted January 11, 2020 Thanks for your message! After talking with my financial guy, I've decided to pay cash for the trailer (it's a smaller, used one) and finance the SUV. I shared a lot of the input I received on this board, which was all very helpful. A great bunch of people! Quote Link to comment Share on other sites More sharing options...
SWharton Posted January 11, 2020 Report Share Posted January 11, 2020 Still check with Alliant/USAA for a car loan. Can't hurt. Quote Link to comment Share on other sites More sharing options...
MH Olson Posted January 11, 2020 Author Report Share Posted January 11, 2020 Will do. I'm interested in the best rate! Thanks for writing. Quote Link to comment Share on other sites More sharing options...
Ray,IN Posted January 11, 2020 Report Share Posted January 11, 2020 (edited) I'm in the buy the trailer first group. My reasoning is, say you buy a standard size SUV, then spot a trailer that causes you to swoon-er, bear with me here, then discover the trailer is too much weight to tow with your SUV. What do you do now? You pass up the can't-live-without-in trailer or trade-in your new SUV for something large enough to safely tow the trailer. When the time comes, this online travel trailer weight calculator will be handy. Note that it offers the 80% safety factor(optional) most full-timers recommend. Edited January 11, 2020 by Ray,IN Quote 2000 Winnebago Ultimate Freedom USQ40JD, ISC 8.3 Cummins 350, Spartan MM Chassis. USA IN 1SG retired;Good Sam Life member,FMCA ." And so, my fellow Americans: ask not what your country can do for you--ask what you can do for your country. John F. Kennedy 20 Jan 1961 Link to comment Share on other sites More sharing options...
MH Olson Posted February 3, 2020 Author Report Share Posted February 3, 2020 Thanks again to everyone for your terrific advice! I just bought a 2016 Jeep Grand Cherokee Overland V-8, and financed a little over half of the cost. I shopped around in advance for a great rate (Alaska USA CU was the best that day of all the CUs I researched), and the dealer got a CA bank to match the rate. Next week, I'm buying the travel trailer with cash (thanks for the advice on that) since loan rates for RVs are nearly twice that of cars and trucks. Now I just have to get my house ready for sale ! 😉 Hope to meet some of you at my first Escapade in June! Quote Link to comment Share on other sites More sharing options...
RV_ Posted February 3, 2020 Report Share Posted February 3, 2020 Congrats on the excellent decision making! Safe travels! Quote RV/Derekhttp://www.rvroadie.com Email on the bottom of my website page.Retired AF 1971-1998 When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius “Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire Link to comment Share on other sites More sharing options...
MH Olson Posted February 20, 2020 Author Report Share Posted February 20, 2020 Hi, TooGars. Thanks for writing. I wound up getting a great car loan (3.85%) on a used Jeep GC, and just yesterday paid cash for a used trailer ('17 Forest River Flagstaff 23'). People on this forum were enormously helpful. If there was to be a loan (and there definitely was!) it made sense from a bunch of angles to make it a car loan only. Regards, Madeline Quote Link to comment Share on other sites More sharing options...
Kirk W Posted February 20, 2020 Report Share Posted February 20, 2020 5 hours ago, MH Olson said: Madeline Are you planning to come to Rock Springs, WY and Escapade next June? It will help you a great deal and you may want to consider also attending RVer's Boot Camp. Quote Good travelin !...............KirkFull-time 11+ years...... Now seasonal travelers.Kirk & Pam's Great RV Adventure Link to comment Share on other sites More sharing options...
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