Refinancing Trailer

**cattledog04** · 07-13-2019, 06:19 PM

Anyone refi their trailer for a lower interest rate? Who did you go with?

**Rich T** · 07-13-2019, 06:29 PM

Originally Posted by cattledog04

Anyone refi their trailer for a lower interest rate? Who did you go with?

yes, our local credit union. don't remember for sure but I think it was in the high end of 4%.
Rich

**Bamaman** · 07-13-2019, 10:21 PM

I always was amazed that you can purchase automobiles on rates from 2.5% APR to 3.5% APR--depending on how long the term is.

Our credit union is more like 4% APR, and they are relatively conservative on terms--84 months or so. Much of the outside lending on RV's is more like 5%-6% APR and they're talking 8-10 year financing. When anything is financed for so long, the total gross finance charges goes up exponentially vs. financing on 4-5 years.

The rates are an indication that lenders don't care for RV financing because (1) they're luxury items for most owners and RV delinquency ratios and repossessions are higher than autos. And (2), financial institutions don't like tying up their money for 8 to 10 years--long term financing that RV's are often financed on. Our credit union has taken a blood bath on both RV and Marine financing over the years.

If you can find low cost financing for RV's, by all means refinance your trailers. Keeping that FICO score high is the best way to rate for lower interest charges.