Here’s why a wise person should never finance an RV for more than five or six years. And try to put at least a third down. If you can’t afford to buy on these terms, don’t buy: You can’t afford the RV! And never buy with zero down. And be damn sure that you are not buying the RV at the sucker price of the day. If you can’t get at LEAST a third off the MSRP, go somewhere else. And even if you get a third off, don’t gloat that you got the best price. You probably could have done better (be patient). And if you’re really smart, buy a used RV that’s a few years old but in great shape.
Camping World, as well as other dealers, are pushing loans of up to 20 years these days and many RV buyers are taking advantage. They’re financing cheap tent trailers that cost less than $10,000 for 12 years with 10 percent down! Imagine that! Motorhomes that sell for $50,000 and more are available — and there are plenty of takers — with terms 20 years or longer. Read my story about what this really means!
Here, from the IRV2 Forum, are three posts from a long thread about what to do if you find yourself upside down in a loan and need to either get out of it, or want to buy another RV. Good luck!
We are thinking of moving to a Class A from our very nice travel trailer. However, the loan (even after two years of larger than required payments) is way underwater. RV dealers we’ve spoken with say they can handle 10-12 grand in the new loan, but we are closer to 18k. Is there a way to deal with this? Pay more and wait until we’re closer to even? Take out a personal loan and pay off the trailer and sell it? Walk away from the loan and trailer and take the credit hit?
When we bought the present rig we were upside down by $93,000 on the old rig. I wrote out a check for the amount owed and got it to the bank. Then I wrote another check for $50,000 for a down payment and state use tax.
After owning our motorhome for 11 years, they gave us $65,000, but 11 years into a 20 year loan, we still owed $50,000! Took the money out of our retirement fund and moved into a trailer, then a bigger one and finally our current fifth wheel full time.