Financing a tow vehicle AND a TT

[ganchan]

Unless magic money tree falls on my head, I'm looking at financing both a tow vehicle and a 13-foot FG egg. My concern is that the loan on one will ding my credit score badly enough to affect my purchase of the other, at least temporarily. (I assume that few on-time payments will help right the ship a bit.)

One issue that complicates the timing is the fact that I need to stop paying rent to make this venture easy to afford. And I can't realistically do that until I have something to live in, LOL. Catch-22.

Would it make more sense to simply take out a combined loan covering both items? How common/uncommon is this practice?

My Plan B is to get a van, live in it until I can get the egg, and then use the van to tow the egg (and for storage). But that vastly restricts my choice of vehicle, obviously.

[Bob Miller]

Unless you are talking NEW, and I suspect that's not the case, getting financing on used FGRV's more than 5 or so years old, can be difficult, if not impossible. Most folks that I know that needed to finance a used FGRV wound up to using a line of credit on their house.


Part of the reason for that is that Blue Books and NADA values for used FGRV's seem to follow the same depreciation rate as other RV's, very steep and the banks see than as having a much lower loan value than most sell for today.


Gotta add, trying to finance a 13' trailer to live in isn't going to endear you to any loan officers when they think that their security might just disappear down the road tomorrow.


Good Luck

[padlin00]

Think I'd stay in the rental, buy a car/van, not buy a trailer, work on paying off the vehicle while attempting to save some $. Tents are pretty cheap.

[ganchan]

I guess I could always do something like this as a transitional stage: Sportz Backroadz 13 Series 2 Person Truck Tent. Wonder if the RV parks, Wal-Mart etc, would allow such a thing on their property?

All things considered,though, I'd probably be more comfortable in a van. And I suppose a van would make a passable daily driver, since I don't do much in-town driving anyway. I can use it as my "occasional RV" until the trailer of my dreams finally comes along....

[Donna D.]

What can I say, I waited years for my Escape 5.0TA and paid cash... you don't get one without paying... but needed a new tow vehicle. THAT came with a mortgage. That's my story, yours may be different.

[cpaharley2008]

It is far easier to obtain a loan while having a permanent address vs a po box or c/o address. Loan companies do not like transient customers.

[TomK]

William, you're probably not going to like what I have to say. I'm guessing you are fairly young. Nothing wrong with that, embrace it while you can. I can remember when your reasoning would have made perfect sense to me. I was young and impatient myself. The fact that living in the back of a pick up with a tent topper sounds like a good idea gives your age away to me.

I think you need to be patient. I know that's easier said than done. Stay in your rental or move to a cheaper one and start saving your money. Get a second or third job and squirrel away some money. When you get ahead, buy a vehicle that will work for towing. You could get a van and camp in it until your well enough off to buy a trailer. Go tent camping in the mean time. Your ship will come in soon enough. I believe the harder you work for something, and the longer you wait; the more you'll appreciate your goal once it's achieved.

Good luck,
Tom

[David B.]

Good advice Tom. It's this type of living all our life, that has let Paula & I retire this year with a new travel trailer & tow vehicle (all paid for by saving).
William, you should either listen to or get a library copy of some of Dave Ramsey's books about getting out of & staying out of debt. "Live like no one else now, so you can live like no one else later."
Dave & Paula

[ganchan]

Oh, I'm not going to purchase right now; just looking ahead. I'm giving myself at least a couple of years to make sure my credit is in good shape, and to boost my income by an extra several hundred a month to offset the approximate cost of a monthly payment. It would just be nice to be able to divert what had been my rent payment toward a vehicle payment. But at least I know that money will be put to good use (RV parks, gas, upkeep etc.)

I could downsize a little once my lease runs out; that would add up to some decent savings over the next 24 months.

[Ron Merritt]

Well if you have that much time, then I would spread out your purchases a bit.

Buy the tow vehicle now. Vehicle loans are fairly easy to get. Don't go hog wild and buy a big fancy, expensive truck that you really don't need. Get the right size vehicle for this little trailer you intend to buy. Make sure your rent, this car payment and all your credit payments (credit cards, etc), if any, are no more than 1/3 your gross income. If you are below that number, you have room (in a bank's eyes) to borrow for an RV.

Pay on it a year and build your credit. Then start shopping for a trailer. By that time you'll have built a good history, enough to get a reasonable loan if needed.

Do not say you are going to give up your address and live in the trailer. Some loans prohibit this, but the fixed address thing is important on loan applications. When you finally make the move, get a PO box or a mail forwarding service that has a fixed address.

Good luck, I'm sure you can do it if you keep things reasonable.

[ganchan]

Thanks. Yes, I agree that buying the vehicle now and making timely payments on it would be the smartest first step toward the trailer purchase.

I'm still considering a van with a healthy towing capacity, because there's always a possibility that I might actually find a better deal on a slightly larger trailer than the 13-footers I'm currently eyeing. (Unless there's less weight difference between, say, a 13-footer and a 16-footer than I realize.). Also, vans tend to be built for toughness and longevity, and older ones can be had for relatively low prices.

And who knows, if I buy a van with sufficient conversion possibilities, I might get along fine for many years without any trailer at all. One major purchase instead of two....

[padlin00]

Think one could get along just fine with the right van.

[Jon in AZ]

Originally Posted by ganchan

Thanks. Yes, I agree that buying the vehicle now and making timely payments on it would be the smartest first step toward the trailer purchase.

I'm still considering a van with a healthy towing capacity, because there's always a possibility that I might actually find a better deal on a slightly larger trailer than the 13-footers I'm currently eyeing. (Unless there's less weight difference between, say, a 13-footer and a 16-footer than I realize.). Also, vans tend to be built for toughness and longevity, and older ones can be had for relatively low prices.

And who knows, if I buy a van with sufficient conversion possibilities, I might get along fine for many years without any trailer at all. One major purchase instead of two....

I camped in a hand-me-down conversion van from my parents for a number of years when I was single. The fold-out bed at the back was comfortable (as long as you aren't too tall). Taking out the captain's chair by the side door made for a lot more room inside. Raised-roof versions with big V-8s are gas hogs, but mine was a standard roof with a small V-8, so it wasn't too bad on gas.

Conversion vans have a bit of an image problem now, but of you don't mind that, you could probably find something for a modest price.

I'll have to agree with all that's been said about delaying purchases, avoiding debt, and learning to save.

[Timber Wolf]

William, I have to say I am impressed that you realize that paying rent, or household expenses in general are a big part of a young person's personal financial picture. I spent my early adulthood in an old "Park Model" trailer, mostly in a trailer park and then on my own property. The rent was cheap in the park and I did odd jobs for the landlord to help even more. Having the trailer made moving to a rural piece of property possible while I built a house. I paid cash for the old Park Model, and cash for every car I drove during that period too. Keep your outflow as low as you can, without living in a drain pipe under the highway, and you are on your way.

[Borden]

We will be retired in a couple of years; talk is of going place to place with the boler and stay a while then move on.

[Donna D.]

I think it's about "life expectations." Beans and weiners provide as much protein as a New York Strip. Will your stomach even know what you ate yesterday or is the experience (memories) you make what's important? Only you can decide that for yourself. I've made my decision.. what's yours?

[ranger100]

Dear Soul,
It is possible to do both at once!

1. Beg a place to "couch surf" even if it's on a friends floor for free. Get rid of all possible expenses.

Dreams come true. Without that possibility, nature would not incite us to have them.

John Updike
US author (1932 - )

2. Purchase a new unit (casita') for example.

3. Then buy the used tow vehicle.

4. The thing they look most at is income to expense ratio.

5. Play your cards right, say your prayers and it can happen.

Best wishes towards wanting to live a frugal and affordable life.

From a guy who could no longer afford a rental house in a college town. Gave away all but the most important stuff in my life (saved the library and wood shop) to rejoin me in better times and places.

Ranger


Sent from my iPhone using Fiberglass RV

[cpaharley2008]

A couple of flaws in your plan. First off, the financial institution will want some collateral, such as your home or it's furnishings to grant he loan. Sleeping on a friends floor would not meet their criteria. Second is having a fixed address for a period of time, again an issue. The banks do not like to foreclose and seize property as they end up losing also. Also you might want to make sure your unit is self contained, bath and kitchen if you want any tax deductions.
I'd suggest you stay where you are, make your purchase using existing circumstances, and then consider making changes. As always this advice is worth what you pay for it- $0

[ranger100]

Originally Posted by cpaharley2008

A couple of flaws in your plan. First off, the financial institution will want some collateral, such as your home or it's furnishings to grant he loan. Sleeping on a friends floor would not meet their criteria. Second is having a fixed address for a period of time, again an issue. The banks do not like to foreclose and seize property as they end up losing also. Also you might want to make sure your unit is self contained, bath and kitchen if you want any tax deductions.
I'd suggest you stay where you are, make your purchase using existing circumstances, and then consider making changes. As always this advice is worth what you pay for it- $0

Thank you Cpaharley!!!!!

It was late when I replied, yes on the new
RV a down payment would be required.
Age and living with a relitive can pass the test.
Finding a non profit credit union can really
Help. Having no debt, or bancruptcies is very
Help ful.
I think the most important thing is to have
The dream and make little steps each day.
And stay far away from "the dream killers". They feed on killing
Dreams like vampires suck life and blood. Get them out of
Your life.
Choose the road less traveled and don't listen
To the "crowd"...
Ranger

[rbryan]

There is a lot to be said for hard work and determination. We sacrificed for years -- beans and rice for dinner almost every night, living in a home that was far too small for us, but cheap, getting by paycheck to paycheck. But sticking with it is key. We worked, saved, got the education and training to take on bigger jobs and more pay, and did that for about 16 years. Guess what? It paid off. If you had told me 10 years ago that today I'd be embarking on a first journey with a brand new truck and a custom trailer for a 5 week vacation, and that money wasn't a concern, I'd have said you're crazy. Stick with it.
You can get there.


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