Best Financing companies

JT4SC · May 25, 2007, 11:24:16 AM

I have done some research on available financing on the bus I am thinking of purchasing. I have good credit and I can put down 10-15%. I have seen as low as 4.95%, but I am not sure if that is a scam to get you in the door or if its legit. What have you experienced??

jjrbus · May 25, 2007, 03:26:32 PM

Unless it is a "professional" conversion, the loan companys will not touch them!

coolbus · May 25, 2007, 06:19:46 PM

If you have good credit, use your credit card! The best rate anywhere, and it's unsecured! I have used my credit cards for major purchases for several years, and always get the best rates-period.

CAUTION... Do Not Miss A Payment Or Be Late For A Payment. You will lose the good rate, and possibly have to pay up to 21% or more. The only safe way to do it is to have automatic electronic payments set up thru your bank. Usually a free service and you don't have to worry about late payments.

Hope this works for you!

Mark 'coolbus'

JT4SC · May 25, 2007, 08:42:45 PM

Well, I will tell you I have never been much of a fan of credit cards, I only keep a debit card and currently have no credit cards. So, since I dont know much about CC, which one will give me the best rate and approximately what rate can I get (assuming excellent credit)?? Also since its unsecured won't that keep me from writing off the interest as a second home??

paulcjhastings · May 26, 2007, 04:47:58 AM

I did what Mark is talking about, my credit card(chase) sends out "convenience" checks at a low rate. I have a rate of 3.99% for the life of the loan. However, as Mark stated, if a payment is ever late or missed they hook you for a higher rate. The credit card companies are betting that most people are going to mess up and pay the higher rate.

The same premise is used to sell furniture and appliances with no interest or payments for one or two years. They carry you for the term and many of the people that finance in this manner can't pay the balance when it comes due, then they get you for the interest for the previous term.

Use care when using this type of financing.

Paul

JackConrad · May 26, 2007, 05:17:53 AM

Lowes also does this now. We bought a new refrigerator last July on our Lowes card, no interest & no payments for 1 year. We just leave our money in our savings account until June then go pay off the card. This lets us continue to draw interest on our money for the year and use Lowes money for a year with no interest. Jack

JT4SC · May 26, 2007, 09:10:41 AM

paulcjhastings (and everyone else who has responded) thanks for the reply.

Two questions: how long is you loan period (3,5,10 years?) and have you been able to write off the interest on the note since its not secured by the bus? I am looking at a 100K bus, being able to write off the interest is going to be pretty important to me.

Your thoughts?

Hartley · May 26, 2007, 09:32:36 AM

About the only way to do a write down of the interest is a home equity loan
or a second mortgage. I don't think that I have ever heard of anyone taking a tax
deduction on an RV loan. Not that it can't happen but would be rare.

My old boss tried to deduct the interest on his boat and was told that was not acceptable.

I also have been told that credit card interest in not deductable either.

The only other option is using a business to pay the interest and write down using
depreciation deductions. But that is tough to do unless the RV is used commercially.

I am no expert in that area so anthing else you hear may be more accurate.

coolbus · May 26, 2007, 09:47:17 AM

JT

Any info I offer is just from my experience... talk to your tax accountant re the deductible interest.

As far as the length of the loan, use an ameratization book; decide for yourself how much you want to pay per month.

For example, $100,000 debt @ 5% interest for 10 years requires a monthly repayment of $1060.66

I don't know if you will find a credit card with that much available credit. You stated that you don't use credit cards up until now. That will probably make it a little harder to accomplish.

Also, balance transfers generally offer the best rates. This means you may need more time to make this work for you.

Not sure why you aren't a fan of credit cards; I use them as often as possible. Pay all my monthly bills, make all my major purchases by credit cards. I only need to write a couple of checks per month (to the credit card companies) and now I have enough airline miles to fly my family of 5 to almost anywhere in the world for FREE.!

Works for me..

Mark