# Financing RV



## jackihf3 (Oct 18, 2005)

I am looking for some advise on financing a used RV we are considering purchasing from a private owner. I am in a bit of a quandry on how to locate the best interest rate for financing. I have a called a couple of local dealers to see if they would handle the financial but they won't. 
Has anyone used any of the online finance services? Do they hammer you with origination fees, points, etc? Any direction you can provide would be greatly appreciated. 
Thanks and travel safe.

Jacki


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## hertig (Oct 18, 2005)

Financing RV

I got a pretty good rate (5.8%) quoted by an online company which specializes in RV loans.  Wasn't enough below the rate I got from the dealer to make it worth the hassle of refinancing tho, so can't speak to any 'gotchas' which they might have.

The key is probably to get a company which does specialize in RV loans.


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## Kirk (Oct 18, 2005)

Financing RV

The reason that the dealers will not handle the financing for you is two fold. First of all, they write loans on a commission basis from the lenders. But they are not authorized to write loans to anyone except their own customers. Secondly, no lender would accept the loan from a delaer who was writing a loan for a private sale, because if violates the dealer finance agreement. Dealers receive a portion of the interest from the loans that they write. But the dealer also must assure the lender of the value of the security. In a private sale, the dealer has no way to do that. 

But there are financing companies that advertise in all of the RV magazines. You can also find them in advertising on the RV web sites.


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## Kirk (Oct 18, 2005)

Financing RV

The reason that the dealers will not handle the financing for you is two fold. First of all, they write loans on a commission basis from the lenders. But they are not authorized to write loans to anyone except their own customers. Secondly, no lender would accept the loan from a delaer who was writing a loan for a private sale, because if violates the dealer finance agreement. Dealers receive a portion of the interest from the loans that they write. But the dealer also must assure the lender of the value of the security. In a private sale, the dealer has no way to do that. 

But there are financing companies that advertise in all of the RV magazines. You can also find them in advertising on the RV web sites. But it would also be wise to check with your own bank where they know you and also any credit union that you may belong to. Very often the place that will give you the best rate is the one that knows you best. When we bought our motorhome, the bank gave me a written committment to finance us for 1/2% less than our best written offer. They did so because we had a good loan record with them and a good credit rating.


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## hertig (Oct 20, 2005)

Financing RV

Watch out for Credit Unions.  At least in AZ, they are authorized 'by law' to use all your accounts with them as collateral in addition to the vehicle financed.  Also, my credit union was way above market rate for RVs.  

I was in my State Farm insurance office, and they had a poster advertising the State Farm Bank had RV loans as low as 4.9%  Might want to check with a nearby State Farm agent (who works with the State Farm Bank; some do not) to see what they could do for you.  I financed a van with them many years ago and they were cheap and there were no problems.


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