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| Is it cheaper to get a Repo RV? |
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| A friend of mine has been considering of getting a Motorhome for him and his family to take with them for camping. He's doing some shopping around for one that he can get some financing on. So far, the one that seemed to get his attention is a repossessed motorhome that he found in the advertisement. Is this a lot cheaper than getting a new one? |
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| Re: Is it cheaper to get a Repo RV? |
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| It depends on your friend's current credit rating. If it's good and it didn't go down even after the financial crisis thing, I'd suggest to go to a dealer that offers financing options. We got ours through our a dealer who got us a financing option 0.50% less than what was initially quoted to us by our credit union. RVs and other properties that are repossessed by banks would usually have outstanding loans attached to them, so my guess is that it may cost more because the bank will need to somehow get that money back and still gain a profit from you, too. |
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| Re: Is it cheaper to get a Repo RV? |
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Technically speaking, your friend can have any RV financed. The important part there is whether or not your friend has a good credit score. The problem though is that these days, lenders tend to be more reluctant on approving a loan for a used or older vehicle. Not sure why but that's just how they roll these days. That being said, I'd go with what harold pointed out. Tell your friend to have a set budget, go to a bank or credit union or dealer and pre-qualify for the amount. Then shop around.
Aside from the additional price, repo or bank owned RVs generally are those that require a lot of work because it's really in a state of disrepair. It's quite expected, if you think about it, 'coz if they don't have the money to pay back the loan, what are the chances that they would have the funds to keep it in good condition too? |
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| Re: Is it cheaper to get a Repo RV? |
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Our first motorhome was a repo that we got out from Florida. We managed to get it financed through USAA. At the time that we got it, we didn't really have a problem about getting the loan amount we needed. Then again, that was during the time when the economy was still doing great and there were very few properties that were being repossessed because the previous owners were not able to pay. These days, it's a bit tougher with the way the economy is going. Like what Matthew said, lenders tend to be reluctant about approving a loan on a repossessed property, but that doesn't mean that you can't find one that will. I'd suggest that you bring your friend to RV shows happening now and do a bit more shopping around to canvas and really find the best deal that's within your friend's budget.
Good luck! |
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| Re: Is it cheaper to get a Repo RV? |
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| You and/or your friend really need to have a good eye to properly inspect repo RVs. It's true that there are some repo RVs that are poorly maintained simply because the owners did not have any money to spend on them. But recently, there are quite a lot of mint condition RVs that have been repossessed after the financial crisis (owner bought the RV and then the financial crisis hits and they lost a significant amount of their income that they were counting on to use to repay the loan for it). |
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