Motorhome Financing

[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?

[BillAdams]

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.

[ianbullock]

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. 

 

 

[Abqtiger]

We have been told 10 years and or 70k miles. Thank you for your input.

[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.

[redandsilver]

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.

 

[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.

[manholt]

The old, non "Sugar Coated" adage is still true....Money talks, BS walks!  Money comes in many ways.

[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.

 

[Bravesoul]

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.

[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!

 

 

 

[GTEMAN]

We just received snail mail From FMCA that we can now get RV financing from a new partner. They offered financing & refinancing on RV’s...I browsed it but threw it away because I figured I could get the information online @FMCA’s website...well, I have spent a good portion of the morning and have not been able to find the name of the business. Did anyone else get the same FMCA letter & happen to remember what the name of the financial institution that FMCA was promoting? Any help would be appreciated.

thanks,

GTEman & woman

[TimeTraveler]

On trade in which offers some savings on sales tax. Dealers don't' want  older MHs partially because the banks don't want to handle older MHs, because they fear they won't last long enough for the loan to be repaid or some such...and this drives down the value of the Motor Home. All the Financiers care about is the numbers. We were alarmed to find our sored insie well kept MH with less than 45,000 miles they only valued at about 58,000.00. hat they do is unload them to wholesellers, who sell them at auction or otherwise to people with the money in hand or easily obtained because of the low price. Dealers don't want to try to sell them and the Banks are the reason for that and the lowering of values. Our mh has real wood and quality furniture and is well kept, just  what everyone wants! And it will sell quick,especially in the California market because of all the problems now for as much as 100,000.00 but certainly for 85,000 or so. However we are not going to hang around in super heated Az any longer and certainly not going to California. The Dealer if we trade, it seems, and hoe for the exception will give us about 50,000 and unload it to a wholeseller for 55,000 who might make 10,00 on it and who he sells it to might make 30-40,000 on it.

Also: our Credit Union will go 3.9% on new Motorhomes--pre current economic situation. We haven't checked but hope it is at 2.9% as it was on new cars. We refinanced our home at 2.75 real APR...and we could have rolled  new Mh into the financing which will be paid off in ten years on 30 year note but weren't shopping.

I would talk to my Credit Union not bank, perhaps about   pre approved amount...Dealers don't get a cut on such, but it is like money in hand, and a quick easy sell if they drop their price. i would try for 45% off on American Coach at least or others and you might do better. They advertise at 40% off offer at 45% or even 50% disount or off MSRP and go from there.

Edited August 14, 2020 by TimeTraveler
speling

[wildebill308]

3 hours ago, TimeTraveler said:

All the Financiers care about is the numbers. We were alarmed to find our sored insie well kept MH with less than 45,000 miles they only valued at about 58,000.00.

So what is this amazing coach? If you had added it to your signature I wouldn't  have to ask.

Bill

[f430040]

Mileage on a motor home means nothing when determining its value. It’s all about the year of manufacture. That’s it.