Buying a Travel Trailer Newb Questions

[BlackBart]

I want to buy a Travel Trailer so I went into M. Thompson today to look at some models. The Outback 23RS is what I like. We sat down to crunch numbers. They came back at me including everything, Batteries, Electric Front Jack, Dual Cam Hitch Sway, Tax, License, etc $22K.

Now this is my first time to finance a trailer. I have been through many cars and a mortgage. They told me the going RV interest is higher then car loans and was at 7.9%. (F*!k). My credit is excellent btw. And they also said most ppl get 12 years loans on trailers , They also told me loan interest on an RV is tax deductible, hmmm.

So they offered me a 144 month loan at $249. I got home and did the math on a calculator. Holy Shiat, comes out to $35K not including the $4K I was gonna give them for the downpayment. lol $40K for a $20K trailer. So I wil prob look into financing with a bank to get a lower interest. I got kind of turned off on the whole buying a new trailer idea now. Thought RV places were desparate for business and willing to negotiate.

My question is, If I buy a trialer out of state do I have to still pay sales tax when registering it in Calif? Also is the interest really tax deductible?

I;d like to here any comments or advice on the whole trailer buying experience. I am considering used trailers now to save $.

[rcantu]

I bought a 24 foot trailer from their Santa Fe Springs store several years back. It was the worse experience ever. Now I know some salespeople and dealers are good people so I'm not trying to insult them but I do want to insult the unscrupolous mofos.

Their sticker prices are just printouts that they can make at will unlike the stickers that new car dealers have. Also there's no invoice that we can see. Depending on the trailer, there's a HUGE markup. They are very profitable. I've seen RV's drop in price for $100,000 off so you know something is up. I paid some crazy interest rate and after I bought it I realized I should have done more shopping but I was in a bind. Now being that the internet is much better than then I found out I could have saved $4000 easy just on the price of the trailer.

I'd suggest you get a referral to a salesperson. Just too tricky.I hope someone can chime in.

Check out that place at the 5 and 405. Traveland usa. those are multiple dealers so you can see more choices too.

To answer your question on tax deductions, you can deduct if you own as primary home and use the trailer as a secondary home.

btw I'm guessing you went to the mickey thompson in fountain valley. I live up of Ward just a few blocks.

[HighlandTitan]

First, RV’s are can be bought for a very heavy discount. I was also going to go used until I found out about the pricing structure – generally 20 – 40% off of list. I got my 2005 Jayco 29BHS (which I love) last year for about $14k when the list was $21k. I was lucky and our local Jayco dealer in Fort Worth already had the discounts in their price, but I was doing my research based on a couple of wholesale dealers that kind of set the price for the rest. You have to factor in what it would cost you to go pick it up from them to know what you would pay for it locally. The two I used are rvdirect.com and rvwholesalers.com. I didn’t see your model on either one, but maybe you can find another one that has it or maybe you will find a different brand that you like. On that subject, I used rv.net’s forums to research quality. Like TitanTalk, you get some whiners that complain about everything, but if you look at the number of threads on the different makes, you can get an idea about the overall quality and general satisfaction. As someone else said, the interest is deductible as a second home if it has a self-contained bathroom.

What was the list price for the one they came back with $22k – just curious how much of a discount they were offering?

Be sure you do the weight calculations correctly – it is not simply the trailer weight and the towing capacity. With a 23 foot you probably would not need to worry, but if you go much bigger there are a lot of factors that have to be accounted for. I have a spreadsheet that is very comprehensive if you are interested.

Good luck!

[HudsonValleyTitan]

22k sounds very high to me. I paid $20k for our 32' Jayco 31BHS. If you own a home, yes...the interest is tax deductible. And yes...if you buy out of state, you'll have to pay the tax when you register it in your state.
7.9% isn't bad for an RV loan, and I'd be surprised if you were able to do better elsewhere today. You don't have to take the full 144 months either, you can go less if you want...you'll just pay more a month. I'm sure you can get a couple more grand reduction in price....if not, go elsewhere. Good luck.

[rcantu]

these are great tips from the guys here. comparison shop to death. don't rush it cause.

good luck

[MINI2NUT]

Great advice. I would try the "pre-owned" route myself. New RV's and boats take a HUGE depreciation hit when taken off a dealers lot. My brother found a used boat this way and he saved nearly 50% of the cost of a new one. The guy purchased the boat and barely used it.

[BlackBart]

Wow, Thanks for all the helpful Comments and Advice guys. It was the Santa Fe Springs Mike THompson. Yes, I do not like the fact that they don't have stickers prices listed like cars also. Customers are walking around there having to ask how much each trailer is which is totally annoying and makes you feel like your being lured into the office for a high pressure pitch. Actually I think I just wanted to know how much they were willing to sell me an outback so I could compare it to used trailers I'd seen online. lol. I didn't realize how bad the interest rates are on RV's. I know it sounds crazy but my Citibank Credit card offered me 1.9% on any balances until they are paid off. Crazy to put a trailer on a credit card? If u accidentalyl miss one payment the rate would default to 20% lol. Anyways I think I'm gonna save up and buy an outback from someone out of state. Much cheaper. I like the outback models cuz of their build quality and they seem to have the only coaches with a slide-out. My driveway can only allow about 25Feet. (not gonna pay storage fees.)

I found a really good deal in Oklahoma. Yeah its far. But its a hell of a price. I am a little bit scared about towing a trailer from that far. Anyone ever bought a trailer out of state and drove it back? Anything i should know about? I do not think I have a brake controll module. My truck also does not have big tow. I did have the hitch and harness put on. I use to have a pop up tent trailer I towed.

Hey also does'nt the DMV charge u the sales tax by what the previous owner puts down as the sell price on the title? If the seller is cool I can get him to Dummie up the sell price lower to save on sales tax correct?

[Smoke05]

7.9% interest sounds about right. My credit union was the same rate as the loan co. the RV dealer was using. I can't comment on price because I am unfamiliar with the model and pricing in your area. However make sure you know what to look for if you are going the used route. Used TT's with no warranties can be a real headache depending on ow loved or abused they were by the previous owner.

[HudsonValleyTitan]

You can look at NADA prices also. If not for new prices, to see what its worth in a year or so. It's a great way to see what brands hold their value best. My old Sunline was good resale-wise. The new Jayco less so.

[nmanley]

If you can qualify check in to a credit union. Most are more liberal now to taking new members. Here's the rate mine offers.

New Recreational Vehicles
$50,000 and over >> 6.75% >> 143 months
$20,000 to $49,999 >> 6.90% >> 143 months
Under $20,000 >> 7.00% >> 60 months

Used Recreational Vehicles
$50,000 and over >> 7.00% >> 143 months
$20,000 to $49,999 >> 7.25% >> 143 months
Under $20,000 >> 7.50% >> 60 months

[helomech]

In less than a year the market is going to be flooded with the used FEMA trailers and the prices are going to drop big time. They are going to be lots of TT that were used very little, or not used at all. There will also be lots of trailer that will be ragged out. I have a FEMA trailer, and it is real nice.

[Aquaholic]

You must live somewhere near me. My trailer is from M Thompson in Colton, Ca. You have to pay Ca tax even if you buy it in another state. Interest is tax deductable(2nd Home). Don't get the hitch and electric jack from them. Much cheaper for hitch at uhaul. The jack buy it yourself. The batteries, do it right the first time and get optimas, don't mess with their overpriced junk batteries. I got my 26'9" springfield with a superslide for 17,600 + fees. A used trailer will have a higher interest rate.

[BlackBart]

Originally Posted by Aquaholic

You must live somewhere near me. My trailer is from M Thompson in Colton, Ca. You have to pay Ca tax even if you buy it in another state. Interest is tax deductable(2nd Home). Don't get the hitch and electric jack from them. Much cheaper for hitch at uhaul. The jack buy it yourself. The batteries, do it right the first time and get optimas, don't mess with their overpriced junk batteries. I got my 26'9" springfield with a superslide for 17,600 + fees. A used trailer will have a higher interest rate.

This was useful info to me. Thanks alot. Yeah I was questioning all the add on stuff M. Thompson wanted me to buy. It started to make the price alot more then I thought and turned me off.

Thanks you guys. This really helps me. !

I got my eye on a used OUtback at Stiers RV. I think I will buy that and not buy any of the extras and follow Aquaholics advice and get the other stuff elsewhere.

[rcantu]

yeah I got jacked on extras too. I still have this huge hitch still LOL

[BlackBart]

Yeah btw for the batteries they wanted to charge me $250 each x2 = $500, For fricking batteries! wtf?

How much do the optima's cost?