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Question about financing older coaches

Hi,

I am hoping to purchase Barry's 2003 U320 but haven't had much success finding lenders that are willing to finance older coaches over 100k. Can anybody share some good lenders that are willing to finance older coaches that would accept longer terms (10-15 years) for over 100k?

However, even if they finance over 100k, it seems most would only finance up to nada value which is 102k for his coach. I can't imagine there are any lenders that would finance over nada especially with a private seller, but if you know of any, please let me know.

The only option I have found so far is:
* USAA - will finance 100% of nada value up to 100k. 80% over 100k

Other options suggested elsewhere that would not work:
* Good sam - only finance 2008 and newer
* Lightstream - Will not finance older than 2008
* Southwest financial - Coaches up to 20 years old but need to be a Kroeger employee or family member
* SkyOne Federal Credit Union - Server only air industry or residents of hawthorne, CA
* Mountain America Credit Union - Must be in various utah communities

The problem with usaa is that I don't have much cash right now and given taxes in CA of over 10k, I would need to come up with 20-25k which I couldn't do at this time.

Any other suggestions?

Thank you!
Adam

Re: Question about financing older coaches

Reply #1
Try Alliant: Alliant Credit Union | Nationwide Digital Banking, Credit Cards, Loans

USAA if you are a member, or eligible to join either yourself, or through family is the best rates and loan criteria. As you noted you have to come with some cash.  When you calculated NADA did you add in every Air Con, awning, etc?

 However, USAA will 100% refuse to loan to full timers.  You must have a home base sticks and bricks, and must state you only intend part time RV use like vacation. I have used USAA for RV loans when I still had a house. They refused me as a full timer, and I went up the company chain to the number 2 guy.  So my last loan was with Alliant.
Dan - Full timing since 2009
2003 U320 40' Tag 2 slide

Re: Question about financing older coaches

Reply #2
Adam

You might try a local credit union. That being said, being cash strapped and owning a 15+ year old luxury motorhome, no matter how well maintained (like Barry;'s) is not likely to bring happiness or peace of mind, unless you can maintain and repair it prety much 100% yourself.

Good luck and keep us informed
Tim Fiedler    2000  Foretravel U-320 4010
2000 Chevy Tracker 2 Door Convertible 4WD Now lifted 4.5"
1985 Citroen 2CV6 Charleston
Murphy Rebel on wheels with 175HP Titan
Cessna 185 on Aerocet 3500 straight floats. (1/4 share)
1980 48' Westport MY (!/4 Share)

Re: Question about financing older coaches

Reply #3
Credit Unions are the best bet.  Ours isn't open to the public so wouldn't help but it's 1.99 on any year last time I checked and that interest is usually deductible. 
Rick & Rhonda
2003 U320 4220  Build #6199
Was
91 36' GV 300 Caterpillar, 92 40' U280 300 Cummins, 97 36' U295 300 Cummins, 2002
U320 450 Cummins
(Guess we're hooked)

The selected media item is not currently available.

Re: Question about financing older coaches

Reply #4
X2 on what Tim said.
Bruce, Linda, and Macy
Zoey RIP 1/20/19
1999 U295 40' build #5400
2017 silver Jeep Wrangler, 1260 watts of solar on top
Moving around the country

Re: Question about financing older coaches

Reply #5
X3 what Tim said.

The standard advice around here for anyone contemplating a purchase, is to have at least $10K cash set back for "incidental" expenses.

In other words, best to be prepared for the unexpected.  You will sleep better at night.
1993 U280 SE 40' WTBI, Build: 4359
C8.3 300hp, 6-Speed, Exhaust Brake
960 watts on the roof (6 x 160)
Sorento (or BOLT) on a Kar Kaddy SS
"It goes without saying..."

Re: Question about financing older coaches

Reply #6

The problem with usaa is that I don't have much cash right now and given taxes in CA of over 10k, I would need to come up with 20-25k which I couldn't do at this time.

Any other suggestions?

Thank you!
Adam

It's time to face reality: You can't afford this coach. In fact, you can't afford any coach over about $50 k, because there will be more than one unexpected expense. Save some money and then buy realistically.
David and Carolyn Osborn
1995 U320C SE 40' Build 4726 Feb 1995
FMCA 147762
Motorcade 17186

Re: Question about financing older coaches

Reply #7
As posted above, unless you can do ALL the repairs yourself, you may find yourself behind the 8 ball and even then, RV ownership is not cheap. If you coach you purchase gets 8 mpg and you drive it in the west, figure $0.50 a mile and that's only for fuel. $600 to fill a 150 gallon tank.  Plus, without excellent DIY knowledge, you will have trouble discerning between good and problem coaches in your search. Best financial advise would be to rent an RV for a trip, otherwise, take commercial flights and rent a car at the
destination.

This is why the VW Vanagon camper so popular today.

Pierce
Pierce and Gaylie Stewart
'93 U300/36 WTBI
Detroit 6V-92TA Jake
1140 watts on the roof
SBFD (ret)

Re: Question about financing older coaches

Reply #8
Adam, not trying to be harsh, but any motor home is an ongoing expense, luxury motor coach even more. That's under normal operation, their will be unplanned expense that comes up now and then. Barry's coach is as well taken care of as any you will find, but sooner or later all them will have an unexpected issues. Good luck.
Bruce, Linda, and Macy
Zoey RIP 1/20/19
1999 U295 40' build #5400
2017 silver Jeep Wrangler, 1260 watts of solar on top
Moving around the country

Re: Question about financing older coaches

Reply #9
Adam, USAA is your best choice and you might consider having the coach titled in South Dakota.  I would recommend Montana LLC, but you can't do that with USAA.  Ask me how I know!  So, I titled my purchase in SD at 4% sales tax. 
Joe & Dottie Allen
Sold!  December 2023.      2000 U320; build # 5645
Our coach " Maxine"
Motorcade #  15922;  Escapee 150950; FMCA F330833; Boondockers Welcome;  Harvest Hosts;  Thousand Trails
'98 U320 from 2000-'06
USAF '62-'66

"Do not spoil what you have by desiring what you have not; remember that what you now have was once among the things you only hoped for." ―Epicurus

Re: Question about financing older coaches

Reply #10
Get an older no slide for now,cheaper to maintain,will still enjoy it.
96 U270 BUILD 4810
85 380SL
Drummonds TN.

Re: Question about financing older coaches

Reply #11
And then you find the really old coaches, like ours. Barry's is 10 years newer than ours, so if someone wanted to finance his, and can't, they would have an even harder time financing ours.

This topic comes up every so often, and the result is always the same: anything much over 10 years old is most likely going to be a cash sale.

That said, sometimes it helps to think outside of the box. If you still have an S&B, can you get a home equity loan to buy the coach before you sell the house? Assuming that you have a year or so before you hit the road, can you borrow what you need while you still own the S&B (thus satisfying the part-time use requirement), and then go full-time? Can you borrow from the cash value of a life insurance policy? Can you use cash advances from some credit cards? All of these, and more, have been used by people in the past. Some may fit you better than others, but start brain-storming.

The ideal situation would be to have the cash on hand to buy the coach you want and still have a substantial reserve to meet the unexpected expenses or just to update those things that you think need updating. Even then, I wouldn't get too excited about changing things that work just because there is something newer available. Live in the coach for a year or so, and then you will know what your real priorities ought to be.

Re: Question about financing older coaches

Reply #12
Adam, X2 on Joe's title but remember to buy insurance in LLC name not your name ,  if it is wrecked that will give ins co. excuse not to pay if names don't match
Chris
1999 U 320 DGFE
Build Number 5523
Chris & Elka Lang
In the field, Lonoke AR

Re: Question about financing older coaches

Reply #13
We saved and paid cash for an older FT. We love the coach and the lifestyle it provides, and the Foretravelers
 that we've met. We sleep better at night knowing we can afford to maintain and enjoy the coach.
1993 U300 40ft GV SE
Build # 4344

Western NC mountains

Re: Question about financing older coaches

Reply #14
We saved and paid cash for an older FT. We love the coach and the lifestyle it provides, and the Foretravelers
 that we've met. We sleep better at night knowing we can afford to maintain and enjoy the coach.
That was exactly our reasoning when we bought our U300. We carry hull on the coach here but only liability when we are in Mexico. It's paid for itself many times over and makes for worry free sleeping.

Pierce
Pierce and Gaylie Stewart
'93 U300/36 WTBI
Detroit 6V-92TA Jake
1140 watts on the roof
SBFD (ret)

Re: Question about financing older coaches

Reply #15
We also paid cash. We knew what we could afford + $15 CBs just in case. That became our criteria for what we looked for.  ^.^d
1993 U-240 "La Villa Grande"..CAT 3116 w/ Pacbrake PRXB...Allison 3060 6-speed..
Previous: 1983 Airstream 310 turbo diesel, 1979 Airstream 280 turbo diesel
                                      Build # 4297
                                      PNW natives
                      Home base:  'Cactus Hug' (Ajo, Arizona)
                        DW Judy & Chet the wonder dog
                        Full-Timers 'Sailing the asphalt sea'

Re: Question about financing older coaches

Reply #16
We also paid cash. We knew what we could afford + $15 CBs just in case. That became our criteria for what we looked for.  ^.^d

Besides--Cash is King when making a deal!
David and Carolyn Osborn
1995 U320C SE 40' Build 4726 Feb 1995
FMCA 147762
Motorcade 17186

Re: Question about financing older coaches

Reply #17
Besides--Cash is King when making a deal!
Did not work for me: the PO knew what he had in the coach and the paperwork to prove it. I made him an offer and HE HUNG UP ON ME! Turned out, he was so fried by tire kickers that he thought I was just another one. I thought for a few minutes, called back and bought her, for asking! As it turned out, it was a heck of a deal for us; just what we wanted.  ^.^d
1993 U-240 "La Villa Grande"..CAT 3116 w/ Pacbrake PRXB...Allison 3060 6-speed..
Previous: 1983 Airstream 310 turbo diesel, 1979 Airstream 280 turbo diesel
                                      Build # 4297
                                      PNW natives
                      Home base:  'Cactus Hug' (Ajo, Arizona)
                        DW Judy & Chet the wonder dog
                        Full-Timers 'Sailing the asphalt sea'

Re: Question about financing older coaches

Reply #18
With luxury items like motorcoaches, boats, and airplanes, it's always better to pay cash and plan on spending 10% more over and above normal operating in the first year.  You will either spend it on unscheduled repairs or upgrades you decide to have.  I have seen people take out long term debt to be able to purchase these.  The problem becomes you are underwater the first year in that the unit becomes worth less than the debt and as it ages it never gets any better.
Steve DeLange
2005 U320T 40'
Pearland, Texas

Re: Question about financing older coaches

Reply #19
Thank you for all of your responses!

Dan - Thank you for the link to Alliant, unfortunately they will only finance a coach up to 15 years old. 1 Year too old! Doh!

Tim and the dittoers  ;) - Yes, I would plan on doing pretty much all the work myself. However, I am not exactly cash strapped as I could afford the payments and space rent and still have a bit of a buffer each month even with minor maintenance costs. Over time I could save up and have an emergency fund. In the meantime, I would have enough credit that I could charge any expensive repairs I could not handle myself, but of course that would be only as a last resort. The problem is that I just don't have cash right NOW. Ideally, I would save up cash and research the market and make a much more informed purchase and be in a better financial position, but for various reasons it is likely do it now or not at all for a very long time. It isn't a decision based purely on "hey wouldn't that be fun" or why many may buy an RV that may not be necessary for them, there are other practical reasons this makes sense for me personally. I may not be able to do it at this time, but it would be great if I could figure out a way that isn't risking a huge financial mistake, though I realize there will always be that risk.

Joe - I have considered such options, but I have also read that California has been cracking down on such practices. Considering all other risks, I would hate to also be risking serious legal complications in addition to losing the coach. Call me chicken if you like :)

kb0zke - I am keeping an open mind about other coaches and years, but I am I am having a hard time letting go of the quality of a foretravel and like you said, if I am having a hard time financing Barry's, it might be even harder to finance an older foretravel even if the final price point is significantly less. As far as the other funding sources, most don't apply to me unfortunately. I may be able to also get an unsecured loan to make up some of the difference which would be better than credit card cash advances, but still not ideal. I could afford the additional monthly payment but the shorter term lengths might eat a bit too much into that monthly buffer leaving me much more cash strapped than I would feel comfortable with, though I am exploring options.

Steve - It wouldn't exactly be a luxury item for me since it would be my primary residence for at least the immediate future. I have crunched numbers and unless I am extremely unlucky, it would actually make better sense financially than to pay the current rents in Los Angeles, which is where I still need to live for work. I would be losing money, but less than I would be paying with an equivalent rent.

Again, thank you all for your responses and input and I welcome more. I will keep you posted.

Adam

Re: Question about financing older coaches

Reply #20
The problem becomes you are underwater the first year in that the unit becomes worth less than the debt and as it ages it never gets any better.

If one is careful it can be an excellent idea to start out underwater in something that can reasonably be expected to appreciate--such as real estate--but it's a horrible idea to start out underwater on a motorhome!
David and Carolyn Osborn
1995 U320C SE 40' Build 4726 Feb 1995
FMCA 147762
Motorcade 17186

Re: Question about financing older coaches

Reply #21
Did not work for me: the PO knew what he had in the coach and the paperwork to prove it. I made him an offer and HE HUNG UP ON ME! Turned out, he was so fried by tire kickers that he thought I was just another one. I thought for a few minutes, called back and bought her, for asking! As it turned out, it was a heck of a deal for us; just what we wanted.  ^.^d

It all depends on the timing. I have purchased some vehicles for cash after negotiating a good deal, while I have purchased others for the asking price because it was already a reasonable deal on exactly what I wanted.
David and Carolyn Osborn
1995 U320C SE 40' Build 4726 Feb 1995
FMCA 147762
Motorcade 17186

Re: Question about financing older coaches

Reply #22
Adam, I would look for an older coach and pay cash (if you can) A decent no slide 1998 like ours will be 50% (or more) less than the buy in cost of that 2003.
In our case, We went from a tent to our 1998 U320. So for us it was like jumping into the Grand Canyon. It was scary as heck.
While we had cash to buy it and fix it. We were still shocked and very frustrated at how quickly things were adding up in the repair department.

There are a lot of folk here that are much smarter than I am and gobs more experienced with coaches. I would listen to them and take it to heart.

Even after all the expense & frustration. We still like our coach and consider it so much better than most other brands.
Jerry & Nona and Kimeru the cat that thinks she's a dog
1998 36' WTFE U320  #5314 Motorcade #17711
USAF 1975-1995
2019 Subaru Crosstrek 'toad'
2003 Subaru Legacy touring car
jerry Fincher | Flickr

Re: Question about financing older coaches

Reply #23
I have crunched numbers and unless I am extremely unlucky, it would actually make better sense financially than to pay the current rents in Los Angeles, which is where I still need to live for work. I would be losing money, but less than I would be paying with an equivalent rent.
I am sure you realize that there is more to owning a motorhome than just the monthly P&I payment on your loan.

I assume you have located a safe, secure place to park the coach, hopefully with full hookups.  Unless you are very fortunate, you will need to pay someone to provide you a space  This rental will probably not be cheap in the LA area.

And then there is liability, collision & comprehensive insurance.  Even if you just carry the minimum required policy, I'm thinking it might be rather costly in Los Angeles, especially for a $100K, 42,000 lb., FBP (full body paint) coach.  If you leave the coach unattended all day while you are at work, you will also have to worry about theft and vandalism.

With these big diesel pushers it is advisable to carry roadside breakdown insurance to cover the tow costs if you get stuck on the shoulder. 

How about taxes?  Is there a personal property tax on RVs where you live?  In some states, this can be a heavy annual monetary burden.

You may have considered all these factors - if so, I apologize for questioning your planning prowness.

1993 U280 SE 40' WTBI, Build: 4359
C8.3 300hp, 6-Speed, Exhaust Brake
960 watts on the roof (6 x 160)
Sorento (or BOLT) on a Kar Kaddy SS
"It goes without saying..."

Re: Question about financing older coaches

Reply #24
Some People do the math. And discover that a pay decrease is actually a wealth increase in some other City.
Old Phart Phred, EIEIO
89 GV ored 36' #3405 300 hp cat 3208 ATAAC side radiator, mountain tamer exhaust brake