Interest rates

[garyde]

With all the talk about the prime rate dropping down to 2 1/2%. I am wondering what Loan rates are for financing Prevosts right now . Has anyone looked into refinancing or are the Loan Companies keeping their rates high like the Banks.

[Loc]

Gary,

I talked with one finance company about a month ago. They said they could get as low as 6.25% with a good loan to value and a maximum principal amount. Unfortunately, I don't thinks rates will go that low, because the spreads have widened out to make up for most of the reduction in Treasuries. Still 6.25% on an after tax basis looks pretty good.

Loc

[Darl-Wilson]

Chattel loan rates do not seem to be declining and I do not look for long-term rates to make any significant change downward. Mortgage rates are actually increasing and chattel loans are not impacted much by the Fed changing short-term or overnight rates. I primarily finance manufactured housing (using OPM) and the rates for chattel loans (not secured by real estate) have essentially remained the same for the last 2-3 years. This is for loans with similar terms as our coaches, i.e. 10-20 years. I haven't financed motor homes although my Nevada license allows that kind of activity. If anyone is interested I will do a search for wholesale lenders that I can use and get some rate quotes. Many of the brokers I talked to when buying my coach used B of A in Jacksonville, FL. Their rates were about 6.5% for 240 month loans on a 10 yr old Prevost. I am guessing I could get a rate lower than that, especially on a refi. My current refi rates are almost 1% less than pruchase rates when lending 80% loan-to-value or less.

Since motorcoach loans, unlike mortgage loans, do not generally have any fees associated with them, I would suggest changing lenders to gain a rate advantage. Even $10.00 per month would be $2,400 over the term of the loan or refinancing at a lower rate could allow the same payment but shorten the term by several months.

Call or email me if you have any questions about the advisability of refinancing. Office toll-free is 866-286-4026. I am usually there from 9:30AM, PDT until late.

Darl

[Five-O]

I dont think the rate on a Bus is going to fall if they fall at all. I think what you will find is that it will be even tougher to get a loan. They will tighten up across the board. An attorney friend of mine who represents Regions Bank in the South and a bank that does RV lending is tightening up. I think rate will have very little to do with Bus loans; it will just simply be whether or not the lending institutions are willing to get involved with it as they will only see foreclosures in real estate and will think everything leads to that especially moveables like a bus.

[Ray Davis]

I think that Five-O is right on. When I was selling my 93, it was ultimately my 6th buyer, before the coach was finally sold. In several cases, the reason for falling through was financing. If I understand Steve Bennett correctly, the older coaches are a bit harder to finance, than newer.

But, even with newer, I do think credit has tightened up, and qualifying is harder.

Ray

[jack14r]

I watch most of the used web sites as well as the converter sites each day,it appears to me that used coaches are not selling nearly as fast as they were a few months ago.Has anyone else noticed this?

[merle&louise]

I have been watching RVOnline.com and I agree the units aren't selling well at all. I think that it is a combination of people seeing their investments decrease in value, high diesel prices, high prices on tires, batteries, labor in service departments, etc. With $100+ for a barrel of oil, our economic future doesn't look too rosy! Diesel costs $.70 to .80 per gallon MORE than gasoline. What's up with that?

Hey Bayley, where is that french fry oil/fuel?

[VegasDogMan]

Saw Diesel for $3.549 in North Carolina today.

Interest rates on 2005 Coach with Montana LLC is 6.25%

[mike kerley]

I wish!!!

Flying J in Fort Pierce Florida, cash price this AM $3.91.9....Thats with a nickel discount for cash!!!

Mike K

[Darl-Wilson]

I just found out that Gold Coast Funding is a POG sponsor. They are advertising 6.75% as their low rate. I suggest that we first call our sponsors last after checking other rates. The fact that they are a sponsor I am sure they will treat us better than outside lenders. Just a thought.