rvcruiser
Toronto
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Joined: 03/12/2007
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Has anyone used a finance company (not a bank or trust company) to finance their RV?
We are both self-employed and banks are a 'pain' to deal with if self-employed.
Also, banks especially, consider RV's an 'extra toy' like a boat. When you tell a bank you are self-employed and full-time they just do not take you seriously. Mostly, they just cannot grasp that concept.
We have found any dealers we talk to say they have financing, but just deal with the couple of major banks.
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lizziepm
Canada
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Joined: 08/14/2006
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Sorry, can't help you there. We paid cash for our TT that we bought this year.
However, when we got our pup in 2006, we used a line of credit to pay for it and simply paid it back monthly or biweekly. Paid it off in 6 months.
LPM
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Orion
Pacific South West
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Joined: 10/21/2002
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I worked in a bank did many loans for self employed people. I just had to see three years tax returns.
I don't ever remember doing a loan for a full time RVer, but I can't see why that would be a problem as long as there was an address at which you could be contacted.
Never miss an opportunity to walk on the grass.
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rvcruiser
Toronto
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Orion wrote:I worked in a bank did many loans for self employed people. I just had to see three years tax returns.
I don't ever remember doing a loan for a full time RVer, but I can't see why that would be a problem as long as there was an address at which you could be contacted.
We have a bona fide address but we have been told unless we 'own' property the bank will not loan for an RV.
Canadian Bank Explanation: 'Times have changed' and so the bank has to cut back on loans.
They lump RV's with boats, atv's, snowmobiles etc. That means they are not a necessity like a house, so are subject to different criteria in these hard times.
When I said the RV is the collateral, and our HOME and necessary--we were told it has wheels.
Apparently that explains it all!
Just a way to get out of loaning, unless you have enough money (property) to pay them back. Even if you have a property, it must not have a very big mortgage---they prefer no mortgage at all!
We have been offered a loan (interest only payment) from a private lender for one-third the amount of the RV. Interest is 33%. Term one year. Cost up front for 'paper work' is $1500.00. This is to borrow $30,000!
Needless to say--we said "nope!"
* This post was
edited 11/23/08 11:32am by rvcruiser *
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Orion
Pacific South West
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I'm thinking that full timing in an RV is the same to the computer loan scoring system as living in a mobile home park. We were never privy to how our system scored the loan applications, but I bet that owning your own stick house is the highest and mobile home living is the lowest.
The lender will not have a 'full timing rv' as a category and therefore has to enter it in as the closest they can find. The problem with this is that someone living in a run down mobile home in a run down mobile home park will 'score' the same as someone who lives in an expensive luxury RV parked in a luxury RV resort.
I'm not encouraging you to lie, but I would try and persuade them that you are renting, which is what you are doing for whatever site you are in. I'm sure that renting is not as 'high' as 'stick' ownership, but I'll bet it's higher than 'mobile home'.
Oh for the good old days when you could use your judgement in lending!
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Sea Dog
Ontario Can.
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While I understand your plight, you have to also see the banks side.
Lets see, you have no adress, no home, no job, no money, want to buy something, a toy, that would be impossible to find and reposses, is it any wonder that particularily now, the banks are shy?
Whould you lend thirty thousand bucks to a stranger with these credentials?
Life is short,Death is long,
Take a vacation.
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rvcruiser
Toronto
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Sea Dog wrote:While I understand your plight, you have to also see the banks side.
Lets see, you have no adress, no home, no job, no money, want to buy something, a toy, that would be impossible to find and reposses, is it any wonder that particularily now, the banks are shy?
Whould you lend thirty thousand bucks to a stranger with these credentials?
Well.....we have two addresses (our home-mailboxes-but they did not know that-quoted our campground fees as our rent, and business address), we both have jobs (one salaried, one self-employed for 25+ years), we have 40% + to put down, we are going to live in it (not play), it will have a license (just like a car only much bigger) so I am sure it could be found. We have a good credit score.
I do believe it is as Orion says. We do not fit into a 'category' in Canada. Full-timer? Unknown category in Canada!
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Sea Dog
Ontario Can.
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Why dont you ask a local credit union how much you would need on deposit to qualify for the loan?
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rvcruiser
Toronto
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Sea Dog wrote:Why dont you ask a local credit union how much you would need on deposit to qualify for the loan?
good suggestion
we will talk to them asap
thanks
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PrivatePilot
Courtice, Ontario, Canada
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Joined: 11/02/2007
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Have you talked to the dealership about financing through their sources?
Based on previous experience the dealerships are anxious enough to make sales (especially right now) that they will do whatever is necessary to secure financing, even if it means shopping the business around to one of their (often multiple) options.
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