PDA

View Full Version : SOMEONE EXPLAIN WHY PURCHASING A TRAILER IS SUCH A NIGHTMARE



europa
May. 13, 2011, 04:44 PM
I have a good credit score
I have 10% to put down

So, why are they trying to rape me in interest? This is ridiculous!

Personal Champ
May. 13, 2011, 04:52 PM
In our case, they kept saying because it is classified as a "recreational vehicle" and only a handful of places are willing to finance them, therefore they can charge basically insane interest prices because of lack of competition.

Phaxxton
May. 13, 2011, 05:10 PM
In our case, they kept saying because it is classified as a "recreational vehicle" and only a handful of places are willing to finance them, therefore they can charge basically insane interest prices because of lack of competition.

Yup. You're not going to get the same interest rate as a car. You might check with your credit card companies if they do other types of secured loans to see if they can do better. We did this when we bought one of our cars. We got a much better interest rate through one credit card company than we did through the dealer's financing options. (And we have good credit, too.) With trailers, though, it may be difficult to find someone willing to finance it.

Sending a PM your way, too. :)

Burbank
May. 13, 2011, 05:13 PM
I think we took out a small personal loan to get a trailer, however it was not a very expensive trailer

Lady Counselor
May. 13, 2011, 05:30 PM
What sort of interest rate are you getting quoted?
recreation vehicles (which horse trailers are) are typically between 9 and 10%, if you have good credit.

europa
May. 13, 2011, 05:33 PM
The first one was 10% but they wanted 20% down. That was after they told me only 10% down which I had. I didn't want to put an additional 2k in down payments. For heaven's sake it is breeding season. HA HA

The last one was soo high they didn't tell me the rate just that it was 10% down and 299.00 a month for 10 yrs. That made an 18k trailer at the end over 35k. AND THAT IS A BIG NO THANK YOU> ;)

relocatedTXjumpr
May. 13, 2011, 05:36 PM
Probably the same reason its a PITA to SELL a trailer!!!!

Diamondindykin
May. 13, 2011, 05:37 PM
I experienced the same thing when I wanted to buy a trailer. I ended up putting off buying one and saved up the money and paid cash. It was hard to wait a couple more years for a trailer but now I don't have any payments and didn't pay any interest :yes:

tasia
May. 13, 2011, 10:35 PM
I experienced the same thing when I wanted to buy a trailer. I ended up putting off buying one and saved up the money and paid cash. It was hard to wait a couple more years for a trailer but now I don't have any payments and didn't pay any interest :yes:

:cool:That's awesome!!

SilvyFilly
May. 13, 2011, 11:14 PM
I hear ya, I called my bank to get the scoop and they basically told me that I need to buy from a dealer(4.99%) or get a personal loan(at about 9% APR). If i bought from a dear then they could know that the trailer was worth what I was paying for it, and then they had no problem lending the money. From a private seller-they said it could work but would go off entirely on my credit score. Which should be good, but 9% is a lot, and I'm cheap. So the trailer sales place I visited had the option of putting 30% down with a 3.99%APR over 48 months. Which I found is a great deal considering my other options. Unfortunately...they don't have the trailer I really want in a straight load, only in a slant, so I really need to make up my mind fast. So I might be buying a trailer I sort of don't want so I can have a trailer. The good thing is is the guy said that most trailer manufactorers are seriously upping their manufactoring prices due to the high cost of fuel by 15-20%, so if you buy a trailer now, in 2 years it will probably not lose any value. I know this is also a selling tactic to try to get my to buy now instead of later, but it is reality and new trailer prices aren't going down anytime soon.

GrayCatFarm
May. 14, 2011, 08:57 AM
Is a home equity loan a possibility? You can open a line for virtually nothing, and then have it available when you need it?

spotmenow
May. 14, 2011, 09:58 AM
In our case, they kept saying because it is classified as a "recreational vehicle" and only a handful of places are willing to finance them, therefore they can charge basically insane interest prices because of lack of competition.

This is the reason the rates are so high...it is a recreational vehicle, like a boat or RV, so the rates are typically around 10%. When we bought our first trailer in 2004, we financed it at 7% but within a year we were able to transfer the balance to a credit card with a 2.99% rate for the life of the balance...that may be an option if you get decent credit card offers.

Aside: The trailer was a Sundowner and we had no sooner paid it off when we realized the frame was compromised...luckily we got Sundowner to replace the frame under warranty after two weeks of arguing and threatening to sue. As I type my new Eby is being made...I opened this thread because it took us 3 months of shopping different brands and trying to get dealers to answer our inquiries before we were comfortable with construction, pricing, etc. What a nightmare!

tasia
May. 14, 2011, 11:07 AM
Is a home equity loan a possibility? You can open a line for virtually nothing, and then have it available when you need it?

Using your home to finance something isn't the best idea. If something goes wrong, job loss etc.. you've risked your home. I know it's tempting, if anyone has equity anymore, and if banks are offering home equity lines of credit. I've used a home equity line before, but I wouldn't now, unless it was an emergency and I absolutely had to. I hope you find reasonable financing.

Sulta
May. 14, 2011, 11:27 AM
Another option is to take a loan against your 401K. I'm not sure if all of them allow it, but mine allows me to take a loan up to $50K out of my 401K, then I pay it back, including interest, over a 3 to 5 year term. But, I get all the interest payments, and there are no tax penalties.

potteryshop
May. 14, 2011, 09:13 PM
Re 401K - Of course if you lose or leave your job before it is paid off, it is considered, taxed, and fined as an early withdrawal unless paid in a short period of time. Could be a major problem in today's world.
What about buying a cheap, just enough to get by. Move up when you have saved enough to do so.
Disclaimer: advice is worth exactly as much as you paid for it.

judybigredpony
May. 14, 2011, 09:19 PM
Did you try Farm Credit????

WishIWereRiding
May. 14, 2011, 09:29 PM
I just got a trailer, and even with perfect credit, we got quoted 7.9% interest rate. Oh well. We took it b/c we (my husband and I) figured we wouldn't take 10 years to pay it off, probably more like 2.

TN Lilly
May. 15, 2011, 12:20 PM
Have you checked with your local/regional Farm Credit outfit?

You can go here to find the Farm Credit organization for your area:

http://www.farmcreditnetwork.com/

Some trailer dealers offer financing through farm credit. I bought my trailer through Traveled Lane in Md. and financed through Mid-Atlantic Farm Credit.

Southeast Financial offers horse trailer loans. I don't know what their rates would be. I suspect that Farm Credit would be lower since it is somewhat like a credit union.

Good luck.

Ibex
May. 15, 2011, 01:18 PM
Even if you can pay cash, if you're going used, it's STILL a royal PITA!!! And it's amazing what turns up when a mechanic looks at it. You know, things like brakes that have never been touched despite claims it was all new 6 months ago... :no:

mellsmom
May. 17, 2011, 11:04 AM
Mine gave me the same rate as a car when I bought mone. The trailer places get a kick back on the loans they process so don't use them. You can even try for a secured personal loan at your bank if the rates are better than the dealership.

53
May. 17, 2011, 12:16 PM
I bought back in January and got 8.9 through my credit union. B of A wouldn't even talk to me about it, lol. My credit union was suspicious, and I spent a lot of time on the phone with them proving the value of the trailer (new, from an out of state dealer). I think what helped in the end was the fact that I was getting a substantial trade in on my old trailer and that lowered the amount of the loan to less than half the actual value of the trailer, so if I were to default, and the credit union repossessed, they would come out ahead.

In the past I did buy using a 0% interest rate card offer and wrote the check to myself, added that amount to cash I had in savings and was able to write a cashier's check for the trailer, private party sale. The 0% term was for 15 months and then the interest rate after that was reasonable, and by that time the balance was significantly lower, so it worked out reasonably well.

Holly Jeanne
May. 17, 2011, 02:00 PM
The best deal I found when I financed my trailer was through the trailer dealership. Of course, that doesn't help if you are buying through an individual.

CatOnLap
May. 17, 2011, 02:11 PM
Hay, at least you're not buying it on your VISA at 19.5%!

In our case, the dealership delivered the trailer and wrecked it coming up our driveway- the guy driving took out our corner fencepost with the trailer fender, ripping the fender, creasing the body of the trailer.
We'd saved and paid cash for it and it was a PITA because they kept it another 6 weeks during srping show season while they fixed and repainted it, would not refund our money without being sued.

Its always something!