We Owe How Much? Avoid Being Upside Down in an RV Loan

[@chrisreed26]

I've bought and sold RV's for a living for over 25 years as well as worked at a few large FL dealers..Don't trade in if you have a brain cell left!! We don't give you crap..It's amazing how many buyers don't even bother to see what their rig is worth!! Oh and if you have painted the inside of your rig or replaced any built in furniture with a cheap Big Lot's recliner, We have a very hard time selling those so we have to run them through the auction..so you can expect even less for a trade..If you are smart or better yet, just pay a young kid down the block to list it on E-Bay for you..I've sold many on E-Bay with no issues except for one time and that was from a buyer who defaulted on a Buy It Now..that came down to PayPals not backing up E-Bay rules so now, I won;t deal with PayPal for anything..problem solved! Anyway, if you have money to burn or have more money than sense, just trade it in. but it's not complex to sell your own car or RV!!! Why are older people soo dang scared to deal with sales??? I just don't get it! When I did work at the dealers we would sit around and joke at how people could just trade in a mint, low mileage coach that could have been sold for triple what they got on trade!!! Keep scaring people to just trade in so us resellers can keep making money off them!haha Seriously though, sell your own rig!!! You CAN do it despite what the old ones say!

[@SmallSpaceLiving]

Great information Patrick. I love number and stuff like this. I think this will help a lot of people out. Great share. Another option is to take the longer term and then pay extra. That way in a bad situation like now for many you got that lower payment when needed. You do have to be careful to stick to it though. Got to find that middle ground.

[@TravelswithDelaney]

That is definitely a good strategy if the person sticks to it. I thought this might be useful information to a first time buyer. Hope you are still doing well. Glad they let you hunker down where you are at.

[@msdanaryan]

Great video! We’re saving to pay cash for our dream camper. 💕

[@TravelswithDelaney]

That’s definitely the best way to do it

[@damianvan4285]

A basic class on finance is what every high school kid should have to pass. I can’t believe how many people, even 40 year olds fall into these scams at car lots, etc... my dad taught me when I was young and had my first paper route how amortization and loans worked. It didn’t seem fair, I got pissed off but in the end, my dad took me to the bank and helped me finance a Redline Proline BMX bike. I paid it off in 1 year instead of 4 because I didn’t want the bank to get all that interest. I have from time to time used a credit card or financed things but I have always paid them off quick, my longest car loan was 3 years. Learning a solid savings plan and being gainfully employed has actually been the other part people need to understand. I pay cash for almost everything today, I am retired, I am now 44 years old. How I got to that point is the fact that I had a really good career but I have blown money and made bad investments. I learned how to save and I used my company’s 401k to invest. Look into low tax investments, (max your IRAs) match your company, look for low risk, save money (money market account) keep about $20k in savings . It’s all doable on any income.

[@jerrygundrum1]

Cash only for toys....an RV is a toy Never lease a vehicle...... Always live well within your means.

[@argentumboyle249]

Who the hell is stupid enough to buy a depreciating asset like an RV for a 20, 15, 10 years financing loan?????? Pay cash, or put at least half down so the payment is little and can finance it for a 5 years term....

[@lindabarker7142]

Patrick, the educator. Good info, good video.

[@TravelswithDelaney]

Thank you!

[@cdlady54_95]

Fantastic information! I watch rv sales shows and can't believe some of the prices people are willing to settle for. I yell at the tv, no way, negotiate! Thank you for sharing.

[@TravelswithDelaney]

LOL! I am glad I am not the only one that yells at the TV!

[@Outdoorstaycations]

Thinking about it, it’s not uncommon for RV resorts to not allow units older than 10 years old to stay long term. That’s because units are considered old at the point. Why would you want to still owe 120 payments (10 years) on an RV that’s considered old, Great video nicely explained how someone finds themself upside down on an RV Loan.

[@TravelswithDelaney]

Outdoorstaycations Thank you

[@kd4pon]

I've done a lot of research the last couple weeks. The best thing to do is sell your RV yourself on RV Trader or other places. If you trade it in you will for sure loose your shirt!

[@TravelswithDelaney]

I would agree Jim!

[@krippleinacaravanxxx707]

Works slightly different in the U.K. Caravan loans work out at between 13% and 23% interest!!! Over 7 years. It’s always best to get a personal loan and buy it that way! It’s like selling your soul for finance over here! I really don’t like it at all! Great when we are young but I’m now 62 and have debt until I’m 67! Never mind eh’ 😭😭😭😳😳😳😂😂😂

[@TravelswithDelaney]

WOW! 13%-23%.....those are really large interest rates.

[@williampresley5727]

Great Video. I now understand why so many people are able to purchase/finance these expensive RVs. I agree with your comments. The smart people would either save up their money and pay cash for their RV or if they have to finance the R, take out a short-term 5 year loan. If you put $500 a month into your 401K from age 30 to 65, when you retire you will have several million dollars in retirement. Monthly payments on things that depreciate will keep you from becoming wealth and independent later in life. BTW - Cavaliers are the best dog!

[@TravelswithDelaney]

We love our cavaliers! They are the best

[@Meant2BeRVing]

Dealer did the same to us. We came home and over tripled up on our payment then divide it in half and pay every 15 days. That pays ours off over 4 years. We are lucky to not be upside down, but it was a scary adventure and lots of lessons learned. Our Credit Union told us the same. Very good information. See you on down the road!

[@TravelswithDelaney]

Thank you for sharing your payoff strategy...this will help others.

[@MDFRfiredriver]

buying a 2021 Lance 1995 @Lazydays Tampa this video reinforced what I already knew about financing So thanks They told me also prepayment penalty but I using this as negotiating tool on lowering purchase price then I finance through my credit union better rate better payment plan no prepayment penalty Enjoying your very informative videos

[@TravelswithDelaney]

Thank you! Yes...usually your credit Union is a better route with financing

[@cynthiajacobs7292]

Congrats! Glad you're keeping all the great info on T@b400! Yes, have to agree about the bed :-) Off to Alaska now?

[@TravelswithDelaney]

Alaska is the plan for summer 2021. Hopefully by then the borders will be open and we will be able to go.

[@lancomedic]

I just looked up your example model Keystone Cougar and some are listing in the mid-40s now instead of the mid 30s when you originally posted this video. So the person who bought one used last year has earned 10k in one year. That seems like a good investment.

[@TravelswithDelaney]

This past year has definitely been the exception and not the norm. Don’t expect these values to stay high forever. Now would be a good time to sell why the prices ace demand are high.

[@onedollah49]

As always enjoyed video. Thinking of purchasing and like the Tab put if you were to purchase a new trailer would you stay with the Tab or change to the Sol, Little Guy or another brand?

[@TravelswithDelaney]

If we were looking to change today and stay in the under 20' range, it would be between the T@B 400 and the InTech Sol. We like Airstream but that would be more than we would want to spend. If we were looking to go a bit larger, then I would add Grand Design and Lance to the list of trailers to look at.

[@RVHabit]

Excellent information. I personally would never get an extended warranty from the dealer as part of the deal. In my opinion you will do better getting an extended warranty from a third party with a separate payment.

[@TravelswithDelaney]

We have never bought an extended warranty. I have not heard good things about them....seems like they have a lot of loop holes written into them. I think a person would be better off to bank that money and save it for repairs.

[@driverman8615]

Good advice, I recently discovered your helpful videos! I learned a lot with out all the "hype". Thanks for your efforts.

[@TravelswithDelaney]

Thanks for watching!

[@lamarroth8339]

Patrick, thanks for putting that info out there. As you were sharing, I kept saying "check with your local bank" and you wrapped up with that message. Got a 3 yr loan from my local bank and paid it off in 1 yr (small used camper). Been down the the extended loan and warranty road years before and won't make that mistake again.

[@TravelswithDelaney]

Thank you Lamar! We have found the local bank almost always is the best route for us.

[@mikemanjo2458]

Very informative! Thanks!

[@alanjones3623]

A very nice description of the process, but most buyers will not write a check to the dealer for the difference between their trade-in and the new unit. Instead, they will roll the shortage into the finance package, which insures they will be even worse off down the road.

[@TravelswithDelaney]

That is a very good point Alan! It's like a snowball that just keeps getting bigger!

[@Pistolmike59]

RV and car loans are amortization loans which means you pay most of the interest in the early years. A better option would be to consider a standard loan like a home equity loan where you only get charged at the interest rate on the outstanding balance. If you pay the loan off faster by you pay a lot less interest if you end up getting rid of the RV in the early years of the loan.

[@TravelswithDelaney]

Great tip!

[@kd4pon]

LazyDays in Tucson told me I could transfer the warranty to another camper. In 2018 I paid about $35,000 for a new Lance 1575 with $10,000 down. I owe $20,000. Was looking at trading it in toward a small Airstream. LazyDays tole me they would give me $15,000 for a camper I paid $35,000 two years ago. it STINKS!

[@TravelswithDelaney]

That’s crazy Jim! I can’t believe that’s all they would give you on a Lance that is that new.

[@kd4pon]

@@TravelswithDelaney They said they are not selling well here in Tucson.

[@MsAdriano7777]

This has been the best video about rv financing I have seen ever on KZbin. And bou have I looked around for one. Thank you.

[@TravelswithDelaney]

Thank you very much for your kind words

[@StopEatExplore]

Thanks Patrick, once again great information as always. Hopefully this will help out future owners. I am now paying my loan plus some extra money each month hopefully to lower the length of the loan.

[@TravelswithDelaney]

Thanks David! I should have mentioned how paying a little extra each month can help to reduce the balance and save you interest.

[@HappyPlaceDiaries]

Fantastic information Patrick. Thanks

[@TravelswithDelaney]

Thank you so much!

[@NewVisionLCS]

Excellent information!! I've been wondering how people are financing these over 100k rv's! It must be like having two mortgages!

[@TravelswithDelaney]

Yes....20 years on a 100k+ motor home is a very common monthly payment quote you’ll see online. I can’t imagine having that and a home mortgage payment as well.

[@NewVisionLCS]

@@TravelswithDelaney we've been RV shopping for awhile now. We've found a travel trailer that fits up perfect(Did video on it at Haylett RV). We also like the Super C with the front mounted engine and the ability to use everything while going down the road!

[@drc1883]

Well done, Patrick. No pun intended but your advise is right on the money!

[@TravelswithDelaney]

Thank you so much!

[@NixPix]

Very good advice especially since we will probably finance our next RV took a lot from this video thanks.

[@TravelswithDelaney]

Thank you!

[@NixPix]

can't you just pay more a month oh never mind thats what you said LOL well I feel smart.

[@BikesBoatsBivouacs]

Good job. How about doing a driveway camping video?

[@TravelswithDelaney]

If this goes on much longer, we may just do that!

[@jerrip7115]

I purchased the same trailer and got the loan myself, which I'm glad I did. I put a decent size down payment and got a five year loan on it. So glad I did this. Great video.

[@TravelswithDelaney]

Thank you for sharing your story! You definitely did it the right way!

[@donalderiquez7684]

Excellent video...

[@TravelswithDelaney]

Thank you!

[@JC.Journey]

Very good information, Patrick. Explained well and easy to understand. We paid cash and our molded fiberglass trailer 5 years ago & it has retained its value but at some point, we will be looking for fulltime rig and this information is very useful. Thank you.

[@TravelswithDelaney]

Glad it was helpful!

[@Davidipac]

I would rather by a good 3 year old and pay half in cash then use a bank loan rather than a dealership.

[@TravelswithDelaney]

Good point!

[@marylounorth7750]

Great information and simple tips to understand. (Previous bank person and its priceless information to know.)

[@TravelswithDelaney]

Thank you Mary Lou! I just thought it might be useful to first time buyers that have never bought an RV before.

[@kokopellie]

Great video. Many people just don't realize how important it is.

[@TravelswithDelaney]

Thank you! I was hoping it might be useful to especially first time buyers.

[@thefrugallyretiredcouple9926]

So, let me get this straight, if I understand you correctly: $40K financed over 15 years @5% is a $316.32 payment started in 2017. If I sell in 2020 I will owe $34,200 but I will only get $30K from the dealer and I will have to pay out of pocket about $4,200. Should I shorten the loan to 10 years @5% the monthly payment is $424.26 and the value left on the loan is $30K. I may not have to pay anything out of pocket, just may be a little bit. But if you look at the extra money I would have been paying from the 10 year loan at $424.26 from the 15 year loan at $316.32, the difference of the two amounts comes to an additional $107.94 I would be paying per month. If you take that amount and multiply it by the 3 years (2017 to 2020) that's $107.94 times 36 months which equals $3,885. Almost the additional $4,200 out of pocket I would have had to come up with should I have done the 15 year loan. The difference is NOT worth it. All you are doing is paying the difference now and for the next 36 months rather than pay it at the time of sale and trade up. You're just playing a game of semantics. I could have utilized the $107.94 additional monthly payment either by investing it or just saving it in a 3 year CD paying 2.5% (which was available in 2017 which would have totaled an extra $100 or so). If I was a student in your class, would I get an A+? Probably not. You'd call me a smart ass. Personally, when we sold our Hummingbird, we owed a little bit on it. That original loan was @5.75%. I rolled that negative equity onto our new 23 ft travel trailer, 2020Rockwood, which we got financed at 2.99%, so technically I'm paying LESS interest on the original negative equity. I believe in keeping my monthly bills low, thus increasing my savings and then at the end of the loan just pay it off with the cash I have on hand. That's how we do our retirement. Thanks for the lesson though. I enjoyed it!!!

[@sherriweber7105]

Thank you for that video. It’s good to know how to finance your travel trailer and or RV. The payments are as much as vehicle. Buts it is all good to know. Thank you! Safe travels . Sherri

[@frostypete1]

Really good tips. Thank you so much! Marilyn Sjotvedt

[@TravelswithDelaney]

Thank you so much!

[@ritaweygint4038]

Great info, thanks! I’d say, if you’re not very well off, and don’t intend to travel a lot, get a cheap trailer LOL!

[@TravelswithDelaney]

Thank you!

[@terryqueen3233]

Excellent information thank you so much

[@TravelswithDelaney]

Thank you

[@ccwanders]

This is an excellent video, very informative!

[@TravelswithDelaney]

Thank you so much!

[@arthurleslie9669]

Also, one RV dealer told me they don't even consider the NADA pricing when making an offer on an RV. That the NADA doesn't actually reflect the 'true-to-life' prices. So, it's very likely you'll be even more upside down than in your example when dealing with a dealer.

[@TravelswithDelaney]

It definitely varies from dealer to dealer. We have even encountered some dealers that won't even take trades.

[@TheAirForceGuy]

RV Dealers do use NADA, not the Low Retail or Average Retail. NADA has an Average Wholesale Trade-in Value and that is where they start.

[@TravelswithDelaney]

RV Reviews by The Air Force Guy Thanks Paul for that information.

[@arthurleslie9669]

@@TheAirForceGuy ... I think you'll have to agree though that not all dealers do so. I personally know of exceptions.

[@guspaca494]

Great advice on this video. Thanks - Now I will never finance for more than 7 yrs. with no add ons or processing fees. and 20% down. My next purchase will be a strictly business decision .I will take out the dealership fear & emotion tactics.

[@Debbie_T_FL]

Excellent video! So very helpful 🐰

[@TravelswithDelaney]

Thank you!

[@JorgeLopez-dg7ei]

Do you recommend buying a tab 400?

[@TravelswithDelaney]

NuCamp is a great company and builds great trailers. If it is the right size for a person, I would definitely recommend it.

[@dougallen8466]

No worries here, we paid cash for our trailer! Brand new Lance 1995!

[@TravelswithDelaney]

Congratulations on the new trailer!

[@j.l.salayao8055]

We got our 4 legged friend free and clear and he is free to roam in and out the house😃.

[@R_W_Smith]

Don't forget to hit that "LIKE" button!

[@TravelswithDelaney]

Thank you Bob! And thank you as always for your support and most importantly your friendship!

[@nick-cb6dl]

abandon it on the railroad track crossing at night, does not matter if your upside down. Sucks that the trailer got stuck going over the tracks and you were just quick enough to get it unhooked from the truck before the train hit it.

[@CJ-tx5hg]

Excellent information, thank you. Too many people don't understand how financing works. Luckily we paid cash for our used 2018 T@B 320 :)

[@TravelswithDelaney]

Cash is definitely the way to go if you can.

[@kd4pon]

The rest of the story: I paid $35,000 for my lance 1575 two years ago and it's in pristine condition. Lazydays in Tucson only wants to give me $19,000 for it! That's a lot of depreciation in two years! I just may keep it Hi Jim, If you were to trade for the 2020 Globetrotter 23FB Twin that we have on our lot, we can give you $19,000 for your trade, and a discount off the Globetrotter of $7,710 so with $10,000 down you would have monthly payments of approximately $659. Is that something that would work for you? Thanks, Lazydays Tucson

[@TravelswithDelaney]

WoW! Thanks for sharing that.

[@TheBestofUSTheFloros]

Thanks for the advice. Duane will be calling you before we sign on the next RV lol. We aren’t trading fortunately. Wished we had seen this before our last buy. However we love it and will use it we pray for years to come. Deana

[@TravelswithDelaney]

I will even go and help Duane negotiate the deal! LOL

[@WhereToNextDad]

cool video and great channel

[@TravelswithDelaney]

Thank you very much!

[@williamstuessy1611]

Wow ! I'll bet the dealers hope this video doesn't circulate too much ! Great explanation, ( from an instructor , of course ) as to how and why financing at the dealership is always in the dealers' favor.....I love the Delaney Team. Great Video.

[@TravelswithDelaney]

Thank you! I’m hoping our dealer friends don’t hate me! Lol. Actually good dealers and they are out there explain things to customers.

[@52rdp7076]

Patrick, excellent advise! Spend some 30 years in finance, mostly collecting upon debt for various banks. Banks are very fee oriented as you know. Credit unions on the other hand usually can offer better rates. One of my biggest things when doing say a mortgage especially with first time buyers, was they usually came in thinking about a 30 year term. Always would break down on a legal sheet all the expenses for a 15, 20 and 30 year mortgage along side each other. Often times customers would then opt for a shorter term mortgage now realizing the cost effectiveness. Again, very good advise. Now if they listened!! LOL!!

[@TravelswithDelaney]

Thank you so much! Hopefully it will help a first time buyer before they sign,

[@martij6]

Solid information. I'll add that most banks look at RV's as luxury items. Assuming the application is even approved for someone with marginal credit, the interest rate will be considerably higher than someone with 'walk on water' credit.

[@TravelswithDelaney]

That is a very good point Joel!

[@TheAirForceGuy]

Good Stuff. Very well explained!

[@TravelswithDelaney]

Thank you Paul! I really appreciate that.

[@joni1]

An RV is not essential. I would never finance a non essential.

[@TravelswithDelaney]

If a person can afford to pay cash, that is definitely the best way to go.

[@j.l.salayao8055]

Our RV is essential because it is our living quarter while making $$$$ to pay it off and a realstate. Same as our ford diesel truck.

[@howardscott6634]

Very good information

[@TravelswithDelaney]

Thank you!

[@st6795]

Wow this is not rocket science

[@TravelswithDelaney]

True that!

[@donnadelahanty9903]

very good info and advice. I am going to be entering a purchase soon and am examining all my options. Thank you for your sharing Patrick.

[@TravelswithDelaney]

Thank you Donna!

[@TheRoadsWeRoam]

Great info-especially for new buyers! Having the option to trade in if/when you want to is definitely worth the higher monthly payments.

[@TravelswithDelaney]

Totally agree! Hopefully this information will be useful to someone looking to buy an RV for the first time.

[@JodysJourney]

Great info.

[@TravelswithDelaney]

Thank you

[@jeandecker4073]

Great info

[@TravelswithDelaney]

Thank you!

[@raustadt]

Chasing wealth in an RV is the definition of insanity.

[@foodfightshowdown4077]

Nice Video Happy Easter to you and your family. 😃

[@TravelswithDelaney]

Thanks so much. Happy Easter to you too!

[@frankbama3989]

Thank you, we are looking at purchasing our first RV and this has been a great help.

[@TravelswithDelaney]

Glad it was helpful!

[@FullTimeDreamRV]

very informative thank you for explaining so clearly

[@TravelswithDelaney]

Thank you!

[@lindadavis3728]

A great instructional guide to financing and can be applied in many areas. Great job.

[@TravelswithDelaney]

Thank you

[@EatSleepRVRepeat]

This is a real useful step by step process. Super Helpful! Lou

[@TravelswithDelaney]

Thank you Lou!

[@amytilghman]

Great information and tips will remember that when I go RV shopping for first time

[@TravelswithDelaney]

Thank you! Hopefully it was helpful.

[@robertsitch1415]

I find that class B rigs are a lot of what has exelent resale value. It seems that many people who bought an used RV during the last recession were able too sell it for what they paid for it or more due to changing market conditions.

[@TravelswithDelaney]

I think if you can find the right used trailer, then you definitely can do well on those purchases. We have friends that actually made money on a used truck camper that they purchased. They got it at the right price and then did some renovations to it that significantly raised its value.

[@robertsitch1415]

@@TravelswithDelaney a few different people on KZbin even have made money by fixing and selling vintage rvs.

[@dougallen8466]

No issues here, we paid cash for our brand new Lance 1995,

[@j.l.salayao8055]

No issues to us either. We got our four legged friend free and clear to roam around our home.

[@markmlynarski1386]

Thank you Patrick. Good advice!

[@TravelswithDelaney]

Thank You Mark!

[@jillfearing4610]

Great info! Thanks Patrick.

[@TravelswithDelaney]

Thank you Jill!

[@marylinsadventures1677]

Excelente video.. thank you.

[@TravelswithDelaney]

Thank you! You are welcome!

[@kraigperry4419]

Good information... How do you winterize your Tab 400 please?h

[@TravelswithDelaney]

Thank you Kraig! Here is the video I did on how we winterize our 400: kzbin.info/www/bejne/rYaWioODgNJnn6c

[@kraigperry4419]

Sorry it’s suppose to say “ how do you dewinterize your Tab 400” .. new at this 😊

[@TravelswithDelaney]

@@kraigperry4419 You're in luck...I have one of those videos too! LOL. kzbin.info/www/bejne/Zp_dmpisrpuFg80

[@paula.jackson5463]

so GOOOD! If you can pay for it, do it!!!!!

[@TravelswithDelaney]

Thank you Paul!

[@marcelom3514]

Great info! Thanks:)

[@TravelswithDelaney]

Thank you!

[@lizchilders4154]

We negotiated a decent price with the leverage of paying cash for it. So glad that we are able to do that at this stage of our lives.

[@TravelswithDelaney]

That is definitely the best way to go if a person can!

[@auroranite]

Liz Childers I’ve heard let the dealer think you’ll be financing with a reasonable downpayment but unsure how much. It depends on what dealer can offer. The price may be less than a quote if paid by cash. The dealer only makes $ off you if financing. When you agree on price then let them know you’ll pay in cash. Glad it worked for you.

[@AbnRgrDocDad]

Once again, you have nailed it

[@TravelswithDelaney]

Thank you so much!

[@jimiseal1]

Thank you very helpful.

[@TravelswithDelaney]

Thank you!

[@markh3720]

Great info👍

[@TravelswithDelaney]

Thank you!

[@777cretbo]

Right on! Bought a brand new fishing Pontoon super nice back in 2016 ... took a dumb 12 / 15 year loan(can't remember now) within a year refinanced through a local credit union after playing around with the calculator at Bankrate. Came to the same conclusion after playing out scenarios .... 7 year loans when buying stuff like RV/Boats generally is a good compromise on payments and keep just ahead of depreciation of RV/Boat. Of coarse less years are the best and ultimately just pay cash is the best way.(Most can't do that) Great Video!!

[@TravelswithDelaney]

Thank you! It is amazing how quickly our toys do depreciate! LOL

[@vinnymozz]

Great Information.

[@TravelswithDelaney]

Thank you Vinny! And Happy Easter to you and your family!

[@vinnymozz]

@@TravelswithDelaney Same to you guys as well. It's been some crazy days here. Long hours. I really can wait to just get in the RV and go.