RV Loans for 2009
Well it is that time here again and people are getting ready for the spring and summer months and this means is time to apply for a motorhome loan. Regardless of the economy and the people are saying about the credit crunch, Americans are still buying recreational vehicles.And if Americans are buying recreational vehicles they’re going to need RV loans to do it. Because let’s face it, about .05% of the population can afford to buy an RV with outright cash on the barrelhead.
There are many different types of RVs people are getting loans for and those include the Class A, Class B, and Class C models available these days. You would also think that in times of economic strife people would not be spending money on extras and they would not be spending money on gas guzzling RVs, but alas – we do.
As it turns out it is true that most people will not be buying expensive motorhomes and the sales of motorhomes is certainly decreasing, which is why we are seeing some of the biggest RV manufacturers going out of business and closing their doors. But this is not to say that the motor home manufacturing industry is becoming extinct. No matter how bad economy is in 2009 and 2010 Americans are still going to be needing brand-new and use RVs for their camping and touring excursions.
The simple fact is that some people, depending on their jobs, business, or industry do quite well in the midst of an economic downturn so there is still money moving around within the markets about as much is normal.
It is also a fact that people who enjoy taking their RV out on the road will not let a bad economy ruin their fun. RVers all across country will sometimes even sell their hard real estate just so they can upgrade their RV to a large Class A model and live their life on the road. God bless them if they can afford it and truly love the lifestyle of being an RV Gypsy.
RV Loan Case Study
Just get a clear picture of what an RV loan will cause with most lending institutions and banks we will do a simple and short RV loan case study. We have many of these different case studies on our web sites and sometimes they are of interest for those looking to buy a brand-new motorhome. (And sometimes used motorhomes)
For this example we will use a brand-new Roadtrek RV with a sticker price of $83,000, bought by a retired couple who want to pay the mortgage off on their house and at the same time take out a new loan for the purchase of their RV using a down payment of $7,000. They also want to make payments on a biweekly basis of 14 days between payments. Furthermore, they want to have the loan paid off in 10 years. We can use a simple loan calculator to figure out this RV loan. The APR on this loan is 7.4%.
So let’s do the math;
$83,000 subtract the down payment of $7,000 = $76,000 for principal
length of term = 10 years
interest rate (APR) = 7.4%
days between payments = 14
_________________________
Here is the total of this RV Loan;
RV Loan Calculation Results
Total Amount to be payed: $10,4227.94
Total amount of interest $28,227.94
Payments: $399.78
Keep in mind that this loan for the purchase of the RV is based purely on a non-compounding schedule or amortization table. If we’re going to take in effect compounding interest it will be a much different equation.
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