Camper loans... 15 year term???

[Capt J-rod]

A good buddy just purchased a 24' Starcraft launch. It is a nice trailer and I like the layout, but it is wood and fiberglass laminated panels. It is built like all other campers in this price range. What scares me is that he got a 15 year loan on it. My previous rig was a 2007 jayco. I bought it in 2012 and it was 5-6 years old. I quickly discovered a roof leak which led to a new roof as well as 1/2 of the floor. I did all the work myself and had about $1500 in materials. The quote from the dealer for just the roof was $4500. I guess where I'm going with this is that I see no way for the product to out last the term of the loan. My local Jayco dealer is pumping out hundreds of units and can't keep up an inventory. I will say I was never so happy as to watch it leave my driveway.  I bought my 21' camp lite used and wrote a check for it. My buddy couldn't believe I paid more for a "used" trailer with no warranty than he paid for a new one. His wife thought my aluminum floor with rubber mats was appalling. I was very polite and didn't comment back. They are good friends but they definitely live in a payment book fantasy world. I guess it's the old tortoise and the hare story. Time always tells the real story.

[Chappy133]

We got one of the last Aluminum roofed TBS built in January 2016. Yes we paid more but my research discovered that all rubber roofs leak eventually and then rot the wood. We are glad we got our Livin Lite when we did.  I too keep my comments to myself when others question our camper. We went to a few RV shows and I was amazed seeing the stick built trailers and how poorly they are built.  I know I will be able to pass this camper on to our children once we are too old to drag it around.

[pjcd]

A 15 year loan for a rig that will not out last the payment, not to mention the interest, which will double the cost of the TT.

[tco2612]

Where do I sign up ?

[Capt J-rod]

Your local jayco dealer or credit union

[thudd3r]

while 10-15 is the most common...they can go to 20 years 

[pjcd]

Taking 10-15 year loan is bad enough, 20 is ridiculous. Do the math, its not worth it.

[Paul]

When I bought my 2015 13QBB they've put the loan on 20 years but I have paid it in total in about 2 years since the loan was open I could pay as much as I want on it. I agree that 20 years it's way too much

[Steve Sanders]

A major failure of our education system is that they don't teach about credit and how to use it. Instead they allow people to become victims of their own misuse of it. Then they blame the financial industry for taking advantage of the (uneducated) consumer.

RV lending is so risky, most banks have exited the market entirely. Those that remain are happy to accept the risk and charge high rates to compensate for that risk.

The lifespan of the collateral isn't really a factor in financing. Current market value of the collateral is what matters.

The balance owed on the loan doesn't change if the collateral deteriorates. Also, it's the borrower's responsibility to maintain the collateral and prevent deterioration.

I totally agree that financing an RV for 15+ years is probably a bad idea, but there could be a situation where it could be reasonable.

The freedom to do something, even something stupid, is very important. I don't want the banks or the government taking away our freedom to do what we think is best for our unique situation because they decided that there would never be a good reason to do that.

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[Diversteve]

Pictures of the difference in construction tell the story.
When we purchased our LL there was a cut-away view of a Brand X and a LL frame side by side, no comparison.

[pjcd]

Stick built RV's are not the issue, there are quality built wood frame RV's out there. The issue is that unless due diligence is applied in maintenance, well, then the trouble starts, any leak, over time has the potential to become a major repair job. I believe that LL's all aluminum TT's eliminate the rot issues associated with wood frame rigs, but they are not trouble free. Like anything in this world, you get what you pay for, and sometimes not even then.

[dlb53151]

Anyone who finances a trailer one day beyond 5 years should consult a psychological professional.


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[DavidM]

Anyone who finances a trailer one day beyond 5 years should consult a psychological professional.

In general I agree. Your average trailer depreciates so much that after five years if you sell it you will get very little back of your original investment. If you financed for 15 years then you will owe your bank some serious cash.

But LLs are different. As noted above they are built to last. I think I can sell my 2013 16TBS for roughly half of what I paid for it 7 years ago so depreciation would roughly match a 15 year loan term.

David