Financing new Scamp - Page 2 - Fiberglass RV


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Old 05-04-2013, 11:07 AM   #15
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2013 Scamp SCAMP 13 PKG Standard Equipment, Prices & Specs - NADAguides

You can go to NADA campers put in 2013 scamp, pick model and then add options.
It will give you the option prices listed. The low price is what the Banks are going to lend...
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Old 05-04-2013, 12:45 PM   #16
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Angry Buying/Financing New vs. Used

According to Yossarian that's a real Catch-22!!!!

In the marketplace (at least in California) a five year old used FGRV's can cost within 20% of a new one, but the CU & Banks will see a 5 y.o. RV as OLD.....

And looking in NADA.Com ( which is where the lending peeps will look) for their vaue for a 5 Y.O. Scamp 13' you get about $4500-5500 base and if you add the deluxe "Package, it adds just a few dollars.

2008 Scamp SCAMP-13 PACKAGE Standard Equipment, Prices & Specs - NADAguides

2008 Scamp SCAMP-13 Standard Equipment, Prices & Specs - NADAguides

Sooooo, you take an average loan value of $5000, and get an 80% loan ($4000) at 12% and you would still have to come up with another $4000 to buy anything decent, or about the same as a down payment to buy new.

I agree, it's unfair to those that can't use a HELOC for larger purchases but, for the most part, those wild and cheap loans of 5 years ago are what got us where we are today.... Starting over.

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Originally Posted by courtney View Post
In this economy, I live by the "if you can't afford to pay cash for it, don't by it" rule. Any chance you'd be up for a used model?
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Old 05-04-2013, 01:05 PM   #17
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It depends on the credit union. I just checked the rates for mine - While I am paying 2.74 (they had a loan sale while I was shopping) , their current rates for new RVs are 100% of Book Value 3.24% for 4 years or under, 5.24% for 49 months or over. Used are 80% of Book Value 3.74% for 48 months, 5.99% for 49 - 96 months.

Book Value for a new RV is sales price, used is NADA, however they are flexible with unusual pricing - I explained the problem with NADA pricing on fiberglass trailers & they were willing to take actual sales prices into consideration.
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Old 05-05-2013, 08:07 AM   #18
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I don't think much of the validity of NADA numbers. We have our 31 ft "sticky" for sale. I consulted NADA and their used price of our trailer is about $5000 more than we paid for it new.
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Old 05-05-2013, 08:18 AM   #19
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Originally Posted by rgrugg View Post
I don't think much of the validity of NADA numbers. We have our 31 ft "sticky" for sale. I consulted NADA and their used price of our trailer is about $5000 more than we paid for it new.
That's because it's a sticky! NADA knows nada about all molded towables. All trailers, no matter build, are lumped into "one" category. It stinks for us.
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Old 05-05-2013, 08:44 AM   #20
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Hi: All... Up here in "The great white north" you only need to prove to a lending institution that you don't need their money to qualify. Interest rates are so low there's only one way for them to go...UP!!!
Alf S. North shore of Lake Erie
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Old 05-05-2013, 08:56 AM   #21
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About NADA RV Prices:

I have heard that the reason that NADA prices are so skewed, both high and low, is twofold.

Because so few RV's over 5 years old are taken in as trades, (dealers don't want to have to deal with higher warrantee costs associated with older rigs) most are sold in private party transactions.

In many (most?) cases this results in the buyer reporting a somewhat "adjusted" purchase price to reduce the sales tax due when registering. Last year, when I sold my 1989 Toyota Sunrader pop-up motor home for a bit under $12000, the buyer reported a purchase price of $3000 (and saved about $750 in sales tax.) This lower number goes into the public record and is what NADA uses, in part, to determine value.

In the case of newer trailers, dealers do resell them and point to the MSRP of new trailers (a price at which they are almost never sold) when the buyer asks about price. Hence, dealer resale prices are much higher than private sales and are reported at 100% of sales price, pushing those prices up, at least for the first few years.

How much of the forgoing is accurate? Who knows, but it does seem to reflect what is happening in the marketplace.
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Old 05-05-2013, 10:09 AM   #22
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Originally Posted by Alf S. View Post
Hi: All... Up here in "The great white north" you only need to prove to a lending institution that you don't need their money to qualify. Interest rates are so low there's only one way for them to go...UP!!!
Alf S. North shore of Lake Erie
Thats true Alf but the key to that as you say is "you only need to prove to a leading institution that you don't need their money". ie they will give you a personal loan or an equity loan based on what you already own and paid for or what you have in your investment/savings accounts with them or another bank. In that case they will issue you a personal line of credit or an equity loan and sometimes if your asking for high amounts they will use that other equity as the security.

It doesn't work that way if you are going for a traditional car/rv loan - you need to have a down payment as they are using the item your purchasing as the security and they do depreciate. On RV's they often require down payment of 10 to 35% down. Also if you only have 10% down you will pay a higher interest rates to cover the loan insurance they will make sure they put on the loan to protect them from your low down payment. Also the poorer your credit rating & the fewer other assets you have the higher the rate you will pay.

Yes some car deals will sometimes offer nothing down and a low interest rate but the truth is the cost of the car has all the extra default insurance and higher interest rates you would have paid if you borrowed directly from a bank already built into it. The dealer through your purchase price will pay those items to the leading institute they are dealing with on your behalf. You the purchaser are going to pay a much higher sales price for the car or RV than had you walked in with cash in hand or borrowed directly from the bank yourself.

On a conventional mortgage, home buyers are required to put down at least 20% of the purchase price or appraised value (whichever is less) as a down payment- that's the legal standard requirement for a down payment in Canada for a traditional mortgage. If you don't have the 20% down payment, you can can get a high-ratio mortgage and put as little as 5% down (legally no less) but the lower you go on the down payment ratio the higher the points go on the mortgage rate and add to that the cost of the legally need to have default insurance built into your mortgage rate it will push your interest rate/payments up through the roof. The end result is that not a lot of people buy homes with only 5% down as they cant afford to make the much higher mortgage payments - same with high ratio car/rv loans. Its the big reason that few people in Canada would walk away from their homes if their was a down swing in property values as we all have to much of our own money invested in them to start with - better to just wait out the down swing.

I am with the others, when it comes to items such an RV/Boat or car your way better off in the long run financially to save up and just pay cash for them or buy one that isnt the one of your dreams but works well enough to get you through to when you can afford to pay cash for the one of your dreams.
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Old 05-05-2013, 11:46 AM   #23
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Maybe get a personal loan rather than a loan against the asset.
Bingo!

They're only going to lend up to the value of the collateral and since in this case the collateral is the trailer itself that means what it may be worth if/when a borrower defaults.

If interest rates are higher for a personal loan, you might consider "splitting" the amount- borrow as much as you can on the trailer and take out a personal for the balance.

Better still (and interest-free!) would be saving up 'til you have enough of a down payment that the lending limit is a non-issue.

Francesca
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