Interest Rates

[fish_fanatic]

I just received my loan information on my new trailer and was a little surprised on the interest rate. My first trailer that we purchased we paid cash for so this is the first one that we will be financing. My wife and I both have credit scores between 750 and 790 so I was under the impression that we would receive a low interest rate but we were notified today that we would have a 5.45% on our loan and this is with $10,000 down on a $25,000 trailer. Is this what RV rates are running or should we have received a better rate?

Randy

 

[BGMAC]

In my past experience I found out getting a loan through a dealer has the highest interest rates followed by banks and the lowest is credit unions. When getting a loan through the dealer your actually going through a bank they have a relationship with. That bank will then pay the dealership for bringing business to them thus the higher rate.
sometimes dealers tie some great incentives if you get the loan through them, but you pay for it on the back end.
With the low interest your getting on any savings it is probably better to pay cash if you can.

 

[Neal]

Shop around, I would expect 4.5% from what I saw somewhere else. A lot of variables of course, but see what you can do on your own and not go through the dealer. It's business, they are making money, it's what they do, it's to be expected. Do your best to take care of yourself. And be careful at the time of purchase for all of the warranty offerings as I discussed in another thread.

 

[NWIP]

5.45% is high and I think you can do better. We purchased prior to Covid-19 in Dec and found 4-4.5% was typical. Rates on RVs is a little higher as it is a depreciating collateral for the bank with more risk.