I was all set to purchase the perfect (for me) LD but was unable to secure financing. I was turned down by many lenders due to age but mainly the value. According to the lending agent the banks have been losing money since the 2020 boom, so JD Powers has reverted to 2019 values. So according to JD Powers a 2006 LD 26.5 MB is worth 13,300. Even with value added for condition and upgrades it came out to 18,000. The values are way below the market. Currently there is 2006 Bigfoot Class C on auto trader right now. It is listed for 89,000. but according to JD Powers it is only worth 39,950. WTF?
The last time I bought an RV was in 2022 and it was a very fast and simple process. I assumed that's how it would be again. I'm beyond disappointed but at least I know what to expect next time.
Interested in this groups feedback about values and financing. Is this a new problem or is this common with older RVs?
Not sure what year you're trying to finance, but very few mainstream lenders will write a loan for an RV that's over 10 years old. This has been the case for at least the past 10 years, if not longer. Your best bet is your local bank or credit union that you already have a relationship with, or maybe Alliant Credit Union. But if it is more than 10 years old, it's a high risk finance for a bank because it's a rapidly depreciating asset, they won't be able to recoup their outlay if they foreclose on the loan/repossess the unit, and they simply aren't interested in that level of hassle.
And yes, lenders go by (unfortunately) what the NADA wholesale pricing is. NADA, of course, only has registered dealer sales data, and with brands like Lazy Daze having virtually no recorded dealer sales, NADA resorts to "market average" values for the type of RV. To the bank, if they had to repossess, it's only worth that wholesale value at auction.
ETA - If your example of a 2006 is what you are wanting to finance, that's basically a 20 year old vehicle. No bank will finance that. I did check Alliant, and they will loan on up to 15 year old units, but only those with less than 75,000 miles.
I was all set to purchase the perfect (for me) LD but was unable to secure financing. I was turned down by many lenders due to age but mainly the value.
Interested in this groups feedback about values and financing. Is this a new problem or is this common with older RVs?
I can’t comment on values etc., but I will say that some have used LightStream, which is reputable and a subsidiary of Truist Bank (formerly SunTrust), a large bank in the Southeast.
They do not ask about year or value, only “what” you’re buying (aircraft, boat, rv, etc.). Because of this, it is an unsecured loan but the rates remain reasonable. They do not use the RV as collateral. They do require excellent credit etc.
I have no idea whether this will help, but wanted to share just in case.
I have no direct or indirect relationship with them other than as a customer of Truist Bank.
Thanks for the advice. I looked into every option and all of them use the same values, so I got the same answer. I expected to throw some cash in, but not 10 grand. I guess I'm better off than a Bigfoot lover because they will need to bring 50grand to the table.
So now I truly know what it will take to get into a LD. I could easily go get a newer RV, but now that I know the perfect RV exists, I can't bring myself to settle. I have spent so many hours driving down the road designing and planning the perfect RV. What I created in my head is the 26.5 MB. I love everything about it! For me and how I use my RV it is the perfect floorplan. That floorplan doesn't exist in a gas Class C and I don't know why? It's so versatile and functional and just the right size. I bet if someone produced that floorplan today it would be very popular. Coachman recently put that floorplan in a new class A and it's it their most popular floorplan now.
Dazy,
Do you perhaps own you own home and if so for a long time? I pulled a Home Equity Loan on my house many years ago and use it in cases like this. Bought my 2000 mid bath last year using it. Granted, interest rates are not the greatest at my credit union but it allowed me to get what I wanted.
Ramon
I would suggest an unsecured personal loan - credit unions are ideal for this.
Steve
Another suggestion Dazy is to look for a Lazy Daze for sale by owner and offer a down payment with owner financing. It might work for some owners who are having difficulty with cash buyers. Maybe and then maybe not. 🤞🤞🤞
Btw, more information from my favorite AI search engine.
Good Sam Finance Center and Trident Funding are two lenders that will finance a 20-year-old RV:
Good Sam Finance Center: Finances RVs up to 20 model years old, including both purchases and refinancing. For diesel pushers, they specifically allow up to 20 model years. Minimum credit score is 600, and they offer loans for a wide range of RV types (motorhomes, conversions, towables, etc.). Loans are available for both private party and dealer purchases, with amounts starting at $10,000. Note that full-time RV residents are not eligible for financing.
Trident Funding: Offers financing for RVs that are 20 years old or newer. Loan terms can be up to 20 years, and loan amounts range from $10,000 to $2 million. They finance both new and used RVs and offer refinancing options.
Maybe??🤔
Save money until you can pay cash. Delayed gratification is a good thing.
As anyone who has owned a RV before knows, and as many have pointed out on this forum, RVing is not cheap. The purchase price is just the beginning. Cost considerations should include insurance, registration, outfitting the RV, gasoline, propane, tires, ongoing maintenance, repairs, camping fees, possible storage fees, etc., etc., etc. Any loan payment would need to be factored in as well.
As anyone who has owned a RV before knows, and as many have pointed out on this forum, RVing is not cheap. The purchase price is just the beginning. Cost considerations should include insurance, registration, outfitting the RV, gasoline, propane, tires, ongoing maintenance, repairs, camping fees, possible storage fees, etc., etc., etc.
And depreciation.
The value of the coach quickly drops below the loan balance unless you make a substantial downpayment. It's quite common for an owner to find themselves "underwater", owing significantly more than they could sell the coach for.
Thanks for everyone's input.