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Abqtiger

Motorhome Financing

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Abqtiger   

We have a 2007 Country Coach Allure 470 that we are not anxious to sell and have questions re bank financing. When we opt to sell it we have been told a variety of financing limitations. Is it true that banks have either or both age  or mileage ceilings after which they will not finance? We are trying to decide if we need to sell before reaching some threshold where a buyer cannot get bank financing. If we have already reached a point that banks will not finance we will keep it. If there is such a threshold how do people sell older motorhomes?

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Many lendors consider 10 years to be the limit but that does not mean everyone or in every situation.  I bought an 88 Prevost in 99 without issue but that was before the banks collapsed.  You might want to talk to a banker you have a good relationship with or other bankers telling them you want to buy a 2007 Country Coach to see what they say.

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Agree with Bill. 

Our RV dealer told us in 2010 when we traded our 2001 Suncruiser that an RV less than 10 years old will attract a higher resale price as financing options are more plentiful for potential buyers. 

 

 

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Rewillia   

It's true that "word on the street" is that the majority of lenders will not finance a RV (in this case, a Class A Motorhome) if >10 years in age - but my personal suspicion is that much depends on what it is (market value at time of purchase) and the individual's financial position, credit worthiness and liquidity.

(e.g. If one is in a position to place a large downpayment (i.e. securing let's say, 40-50% equity up front) or can demonstrate financial holdings/securities that can be bridged to such a loan (i.e. investments, home ownership, etc.) then some lenders may be willing to provide financing on the basis that the loan is less of a risk and further secured in terms of one's ability to repay it.

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If someone has a home Equity line of credit they can use it for whatever they want to buy.

If they wanted to buy a 25 year old MH with 165,000 miles on it, no one is going to stop them as they have already been cleared up to what ever percentage of value their home is worth.  No banker is really involved in what they spend their money on, as anyone that doesn't want to lose their home is going to repay the loan.

That would be one way that someone could buy more than a 10 year old vehicle.

Then again if someone had cash then there also would be no banker involved.

 

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CarlAda   

Agree with Rewillia ... the buyer's financial situation will have significant impact on the lender's decision to place a loan on an older motorhome.  While the 10 year threshold does exist, it's not an ironclad NO in every situation.

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RayIN   
On 11/17/2017 at 8:58 PM, RedandSilver said:

If someone has a home Equity line of credit they can use it for whatever they want to buy.

If they wanted to buy a 25 year old MH with 165,000 miles on it, no one is going to stop them as they have already been cleared up to what ever percentage of value their home is worth.  No banker is really involved in what they spend their money on, as anyone that doesn't want to lose their home is going to repay the loan.

That would be one way that someone could buy more than a 10 year old vehicle.

Then again if someone had cash then there also would be no banker involved.

 

I do realize the OP is selling their MH, but this was our financing route:

That's what we did, well, we actually re-financed. We actually got a 3.5% annual loan, bought the MH;  monthly payments are less than prior to the re-financing too. MH purchase price is now re-paid. There is nowhere one will find a 3.5% rate for financing an RV let alone an older one.

 

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I purchased a 2007 Fleetwood Revolution LE with 42k miles on it for 99k, put down 12k and financed the balance for 15yr @ 4.5%.  It was a bank which I had no relation to but do have a high income and IRA's which each would cover the loan if needed.  That isn't everyone but yes it can be done, just do a lot of searching and possibly consider consignment selling through a good dealer.

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RexCoach   

We partly financed a 17 year old Country Coach. We found a few banks to be inflexible in regards to the 10 year rule. 2 local credit unions were more relaxed. The problem we had with an older coach is the unrealistic, IMO, Blue Book pricing that had our coach listing for a scrappers price. The credit said they would consider an appraiser so for about $125.00 we had a complete appraisal done and the CU was completely satisfied with that, as was the insurance company.

With all that being said, you could consider getting an appraisal so you have (possibly) a more realistic value, on paper, or your coach that you can use with a lender, an insurance co, and a prospective buyer.

 

Good luck!

 

 

 

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