Financing new Scamp

[eryork]

I have contacted my credit union regarding financing a new Scamp.

1. They used the NADA Guide which says the suggested list price of a new Scamp 13 with pkg is $9,795, low retail $7,190, average retail 8,650. Since it is only sold by the factory at the list price the low and average retail don't apply. (When buying a new Scamp has anyone had experience negotiating discounts with the factory?) This would mean the low retail might be valid for financing.

Furthermore NADA option list is a generic RV one that doesn't include many of the specific items we have ordered.

2. We have not found a way to establish a value near the price for the Scamp with pkg + options options. The problem is the credit union wants to use the low retail value as the amount they will finance. The trailer we ordered has options that make the price well above this. Can any of you suggest how we might solve this problem?

Thank you. We look forward to getting on the road with our new Scamp.

[Byron Kinnaman]

I would suggest that you ask the credit union to call Scamp for pricing.

If that doesn't work find another credit union. I had no problems with mine, but that was almost 8 years ago.

Also I was only financing 50%

[Donna D.]

Maybe get a personal loan rather than a loan against the asset. I can get a "signature" loan at my credit union and still quality for the 2nd home mortgage deduction on my taxes... trust me, I've checked

YMMV

[Mike Magee]

The credit union is thinking of their safety financially. They want to loan only as much as they could get back out of it if you defaulted. But they are accustomed to financing RVs that depreciate much faster than Scamps. If they can be convinced that the trailer with options would only lose, say, $1000 or so after it leaves the factory, then they should be willing to only require about that much of a down payment.

If you can't work with that credit union on this issue, best to shop around for other lenders.

[eryork]

I like the suggestion about having the CU call Scamp. If that doesn't work, I'll shop around. Thanks for the ideas

[carlkeigley]

We joined a Credit Union not too long ago.
We are fairly pleased with our relationship.
Now I notice how many Credit Unions there are in this area.

I used to belong to the CU at a factory where I worked before I retired.
But they were 15% and weren't much better than my local bank.
That was decades ago.

[Robin G]

Sorry I don't understand the theory behind your credit union way of loaning on the Scamp. First off isn't "Nada" about used cars, trucks, rv's, travel trailers? You say they have a generic options list. Personally then they should take into consideration that their list is basic! And adjust to fit the trailer you are looking to get a loan on.
But as far as the "retail" price, it is what it is! No matter how they want to try and spin it into their basic assessment of what a retail price should be.
"Retail" is the price that Scamp sells them for (deal or no deal, which I haven't heard of many. But that's beside the point) The cost of the Scamp is the cost. They are not sold in the open "retail" market place. I think the suggestion of having them contact Scamp is your best bet. Good Luck!

[Byron Kinnaman]

Originally Posted by Robin G

Sorry I don't understand the theory behind your credit union way of loaning on the Scamp. First off isn't "Nada" about used cars, trucks, rv's, travel trailers? You say they have a generic options list. Personally then they should take into consideration that their list is basic! And adjust to fit the trailer you are looking to get a loan on.
But as far as the "retail" price, it is what it is! No matter how they want to try and spin it into their basic assessment of what a retail price should be.
"Retail" is the price that Scamp sells them for (deal or no deal, which I haven't heard of many. But that's beside the point) The cost of the Scamp is the cost. They are not sold in the open "retail" market place. I think the suggestion of having them contact Scamp is your best bet. Good Luck!

I think part of the problem could be the amount of down payment. If I'm not mistaken most lending institutions want at least 10% down. That said if the Scamp with options is high that also would effect the maximum loan any lending institution would loan.

[OneTim]

My bank mentioned NADA a couple of times but an actual invoice/bill of sale satisfied them and was the final word in the actual retail price.

[Bob Miller]

As a result of all the new car financing "deals" out there, I think that the public has become somewhat jaded about vehicle financing.

RV's in general are a different animal. The CU has to protect it's assetts and will limit it's exposure to something less than the used value of what it is financing. (Remember, as soon as you buy it, it is used). One of the reasons CU's can offer lower rates is that they accept a lower risk level. (Did I say housing bubble??)

Unfortunately, in the eyes of the CU, all of those expensive options will add little to the resale value.

Add to that, most new towables, at MSRP, are grossly overpriced to give the dealers room for discounts, presenting another scare for the CU. We got almost 33% off MSPR when buying a new 17' Coleman hybrid just 6 months back.

I use a HELOC (Home equity line of credit) for most of my larger purchases and, at about 3% it gives me a good rate and I can haggle better with dealers and private sellers.

Bottom line, ya gotta come up with a bigger down payment when financing RV's through credit unions.

[steve dunham]

I have found that if you borrow against savings it is a lot easier to get a loan The interest rate on the loan is 1% over the rate paid on savings and you retain the life insurance feature on the loan . The other plus is if you experience a change in your financial status , the credit union (At Least Ours) will work with you . Our Credit Union wants a 20% minimum down payment on recreational items such as ATV's RV;s ,Snowmobiles ,Boats Etc.

[courtney]

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?

[Thomas G.]

I pay cash, but if I needed a loan I'd use a home equity loan so the interest would be deductible.

[Cricket]

I pay cash for that kind of thing....we just saved until we could afford one.

[mszabo]

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...

[Bob Miller]

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

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?

[Jon Vermilye]

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.

[rgrugg]

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.

[Donna D.]

Originally Posted by rgrugg

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.

[Alf S.]

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