Finance?
- Thread starter rjp4689
- Start date
The most important aspect of borrowing will be first, your credit, then your capacity to repay the loan then the collateral. If you have very good credit and can show that you can easily make the payments, the collateral, while still importnat, is less of a factor. Start first with where you do your banking. Don't forget credit unions in your area. As for the collateral, they will book it, meaning they will look at the blue book and work off that, but if the vehicle is not listed, they can go off the sale price and consider your down payment. If you are doing 20% or more as a down payment on the deal, the deal will be weighted mostly to your ability to repay and your credit. Good luck :victory:
adventureduo
Dave Druck [KI6LBB]
Yep. You can get a 30 year loan and write if off as a second home as long as it has some general plumbing in it. We did just that when we owned ours.
Toolman
Explorer
I found a company in TN called "South East Financial" that will accept a KBB print out from SMB as a basis for value. They won't finance a vehicle over 90k miles. Most banks won't accept a hard copy KBB. They only go by NADA or KBB on the web, which is a problem because all of the available SMB features aren't on NADA and KBB RV doesn't exist on the web. The most expensive feature is 4WD and it's not on NADA.
Also it has to be registered as an RV. It can't be a commercial vehicle or an automobile. Another issue I ran into with several SMB's I wanted.
Good luck I hope this helps.. it took me months to find this place. My credit union wouldn't do it because the value wasn't there on NADA. A $60k SMB topped out at around $26k on NADA.
oh ya .. very important.. don't tell them it's a van conversion, it's a "CLASS B" RV.
Also it has to be registered as an RV. It can't be a commercial vehicle or an automobile. Another issue I ran into with several SMB's I wanted.
Good luck I hope this helps.. it took me months to find this place. My credit union wouldn't do it because the value wasn't there on NADA. A $60k SMB topped out at around $26k on NADA.
oh ya .. very important.. don't tell them it's a van conversion, it's a "CLASS B" RV.
yep!
Toolman hit it right on the head. Me and my wife found a great deal on a used rig For 70k. The bank would only do the book value of the van. But they would do 100% of a new one at $118k with 0 down...******, I said that is the most retarted thing I ever heard. We bought a used 4x4 chassis and built our own. We are in it 30k:coffeedrink:. 100k is a tough pill to swallow these days, they do make a good product though.
Toolman hit it right on the head. Me and my wife found a great deal on a used rig For 70k. The bank would only do the book value of the van. But they would do 100% of a new one at $118k with 0 down...******, I said that is the most retarted thing I ever heard. We bought a used 4x4 chassis and built our own. We are in it 30k:coffeedrink:. 100k is a tough pill to swallow these days, they do make a good product though.
Great looking vehicle Toolman! I like the black, I'd have to run it before I got in it in this weather....lol. And good comments on financing guys.....
Just remember, who you bank with will have a bearing on what they will and can do.
You might be able to have an expensive vehicle classified as an RV to be appraised by a dealer and for some of you in larger cities, an independent appraiser (not an Real estate appraiser).
The problem the lenders have is how to show the collateral value of what it is you want to finance. Lenders will have a written loan policy and bank examiners (I was one) will look to see if the lender is in compliance with the written loan policy. The examiner will also look to see what the collateral value of loans are above a certain amount. Another aspect is the rate of default on loans that are made on used vehicles or equipment and what the rate of default is for a new vehicle, that's where you can find 100% on new vehicles with good customers.
You need to sell yourself to the banker as to what it is you are financing and your ability to repay. Issues come up when financing a home built vehicle or very specialized vehicle. Boats and yachts that are custom built are one of a kind and don't show up in any blue book and a marine appraisal is made to establish values. Same for Class A bus conversions, some are professionally done with quality materials and some are done in backyards by the average guy, big difference in valuation.
Just a suggestion too, when buying a vehicle that needs additional equipment, you can have the dealer buy what you want and sell it to you with the vehicle, most lenders will go 80% of those extras on the financing of the vehicle (depending on the year and basis of the loan)....need to ask the dealer in your deal. The added equipment needs to be usual and customary for the type of vehicle, so you need to present it to the lender in that light. For example, a lift for a handicap accessable vehicle will fly, a furnace for a pickup camper top might be a hard sell, a furnace for the RV is just necessary.
It's been about 20 years since I financed any vehicle, but what a lender can do will be based on the aspects I pointed out above. If they can get the loan past the bank examiners, and want to do it with you, they likely will.
As to the tax deductions, if your vehicle has a galley/kitchen and a head/bathroom that is self contained, you can have a second home and deduct the interest.....until they change it.:ylsmoke:
Just remember, who you bank with will have a bearing on what they will and can do.
You might be able to have an expensive vehicle classified as an RV to be appraised by a dealer and for some of you in larger cities, an independent appraiser (not an Real estate appraiser).
The problem the lenders have is how to show the collateral value of what it is you want to finance. Lenders will have a written loan policy and bank examiners (I was one) will look to see if the lender is in compliance with the written loan policy. The examiner will also look to see what the collateral value of loans are above a certain amount. Another aspect is the rate of default on loans that are made on used vehicles or equipment and what the rate of default is for a new vehicle, that's where you can find 100% on new vehicles with good customers.
You need to sell yourself to the banker as to what it is you are financing and your ability to repay. Issues come up when financing a home built vehicle or very specialized vehicle. Boats and yachts that are custom built are one of a kind and don't show up in any blue book and a marine appraisal is made to establish values. Same for Class A bus conversions, some are professionally done with quality materials and some are done in backyards by the average guy, big difference in valuation.
Just a suggestion too, when buying a vehicle that needs additional equipment, you can have the dealer buy what you want and sell it to you with the vehicle, most lenders will go 80% of those extras on the financing of the vehicle (depending on the year and basis of the loan)....need to ask the dealer in your deal. The added equipment needs to be usual and customary for the type of vehicle, so you need to present it to the lender in that light. For example, a lift for a handicap accessable vehicle will fly, a furnace for a pickup camper top might be a hard sell, a furnace for the RV is just necessary.
It's been about 20 years since I financed any vehicle, but what a lender can do will be based on the aspects I pointed out above. If they can get the loan past the bank examiners, and want to do it with you, they likely will.
As to the tax deductions, if your vehicle has a galley/kitchen and a head/bathroom that is self contained, you can have a second home and deduct the interest.....until they change it.:ylsmoke:
