KOA finacing

**chuckster57** · 03-05-2018, 06:35 PM

I got an email this morning from KOA saying they are getting into the RV finacing game. New, used, from a dealer or even a private party. Anybody else get the email and if so whatcha think?

**JRTJH** · 03-05-2018, 07:46 PM

I got the same thing (I think) in the mail the other day. It got torn in half and trashed after looking at it. I just looked it up online and it seems that KOA has teamed with Essex Credit to offer RV financing. They have a "up to $400 in free KOA camping" depending on how much you finance. I'd guess they also get a kickback on each contract, much like stores, organizations and charities are doing with Visa/MasterCard.

Rates don't look as good as most banks and credit unions, so depending on someone's credit score, it may be a "cheap way to finance a high risk loan"...

Rates are:
$75,000+: 4.99%
$50,000 - $74,999: 4.99%
$25,000 - $49,999: 5.39%
$15,000 - $24,999: 5.49%
$10,000 - $14,999: 5.99%

Free camping amount:
Loan Amount FREE Camping
$10,000 - $24,999 $75
$25,000 - $49,999 $100
$50,000 - $74,999 $200
$75,000 - $149,999 $300
$150,000 + $400

travelin texans · 03-05-2018, 07:51 PM

Spend $25k & get 1 & 1/2 nights of "free" camping.
Boy that's good deal! NOT

**JRTJH** · 03-05-2018, 08:10 PM

Just my guess, but they are looking at financing "higher risk" loans at 1-2% higher than most "excellent credit" rates.

This is in their FAQ:
Does Essex require a minimum credit score?
Yes, the minimum FICO credit score considered for published rates is 690.

https://www.essexcredit.com/koa/rvfaq/

**sourdough** · 03-05-2018, 08:21 PM

I did not check rates this evening, but those don't look like a good rate for those with a score over 800. It seems they are trying to draw in those folks (seems like many now) that "get by" and stretch themselves to get stuff. I'm out.

**chuckster57** · 03-05-2018, 08:24 PM

They will even re-fi an existing loan. I’m good with my current rate and not in the market to “start over” with a 6 year old trailer.

**JRTJH** · 03-05-2018, 09:04 PM

Our credit union currently is financing RV's for 3.24 APR with a .25% discount for automatic withdrawal and a .5% discount for a credit rating over 800. That's an effective rate of 2.49%. That rate can be negotiated even lower with a significant down payment or with security in the bank, so KOA's rate seems "up there" for someone with excellent credit. It sure looks like they are focusing on the "high risk loans" for people with a credit score from 690 to 790. Anyone with better credit scores can get rates half what KOA/Essex is offering.

Just my opinion, but it looks like those "payday loan" businesses from when we first got married. Liberty Loan, Pacific Finance, Dial Loans, etc. Expensive money aimed at people who can't get what they want anywhere else.

Dave W · 03-06-2018, 06:28 AM

I got the KOA loan email a few days ago but didn't bother looking at the rates until today. The two credit unions we use have widely varying rates one is 2.99% for 3 years but for 5 years it goes to 4.54%, the other CU is 4.94% regardless according to their on line rate finder. I suspect with our very good credit score, ours might be even less. But with that said, little chance we will be in the market for a new RV this year though we always wander the local lots on occasion.

Tbos · 03-06-2018, 04:53 PM

Quote:

Originally Posted by JRTJH

Our credit union currently is financing RV's for 3.24 APR with a .25% discount for automatic withdrawal and a .5% discount for a credit rating over 800. That's an effective rate of 2.49%. That rate can be negotiated even lower with a significant down payment or with security in the bank, so KOA's rate seems "up there" for someone with excellent credit. It sure looks like they are focusing on the "high risk loans" for people with a credit score from 690 to 790. Anyone with better credit scores can get rates half what KOA/Essex is offering.

Just my opinion, but it looks like those "payday loan" businesses from when we first got married. Liberty Loan, Pacific Finance, Dial Loans, etc. Expensive money aimed at people who can't get what they want anywhere else.

What credit union are you using? The 3 in our area are no where near that low.

Sent from my iPad using Tapatalk

**JRTJH** · 03-06-2018, 05:14 PM

Quote:

Originally Posted by Tbos

What credit union are you using? The 3 in our area are no where near that low.

Here's three:

https://awakonfcu.net/loans/loan-rates/
http://www.cfcu.org/loanrates
https://www.lmcu.org/rates/credit_and_loan.aspx

The discounts aren't listed in the rate charts, you'll have to read the contracts to find out which offer the automatic withdrawal, secured investments and credit score discounts.

Advertised rates range from 3.05-4.49%

Frank G · 03-06-2018, 05:28 PM

Directions CU, Toledo, OH RV Loans 6.22% National Average 6.28%APR

Location, Location, Location

Depending on Location, KOA might not be a bad value for a 800+ Customer

Didn't Prime increase 1% the 1st of the month or was I hearing bad information? More increases this year?

Was looking at a Park Model today and got the "Buy Now" scare as prices on the rise due to tariffs on lumber, steel and aluminum.

Gegrad · 03-06-2018, 05:38 PM

When I bought my Premier in July, after I had negotiated the price with the dealer I told them I was going to pay cash. They told me through a special deal with their affiliated bank I would get another $1,000 off the purchase price if I financed through their preferred lender (not from them).

I looked through the fine print, made sure there was no early payoff penalty, etc, and said "sure". Took $1,000 off right there. I set it all up, it was going to be like 5.5% for 180 months or some ungodly number. They did tell me I needed to finance it for like 4 months minimum or so, but I could not see that in the details, so when I got the first statement I paid all but like $2000 of the loan. Paid $500 more each month then wrapped it up in December. I paid a total of $90 in interest, to get $1,000 off the price. And I had pulled the purchase price down like $2,000 from the original asking price (used trailer, not new).

And the final price ended up being BELOW low retail by like $1000.

**JRTJH** · 03-06-2018, 05:54 PM

We did the same with our truck in 2015. If I remember the figures correctly, it was 0% financing for 48 months or 2500 rebate with 4.9% financing. Had to keep the contract active for a minimum of 4 months to get the rebate. So we financed the truck, when the first statement came we paid all but $100 and then made 4 payments of $25 each. Total interest was about $30 on a $45,000 loan for 8 days plus the rebate of $2500 LOL

Gegrad · 03-06-2018, 06:41 PM

That's awesome too. Working the system, always smart. Nice story!

notanlines · 03-07-2018, 03:36 AM

Thank you Ford Motor Credit. 2014, $2500 instant rebate. Exactly the same deal as John. Four months later it was all said and done. Money in our pocket.

Tinner12002 · 03-07-2018, 11:04 AM

My CU here apparently doesn't like RVs because their rate is in the 6-7% area!

mikz86ta · 03-07-2018, 04:26 PM

Umm nope.
I'm happy with my rate. I have outstanding credit and a very good rate. My monthly bill is less than either truck we have. And there is simply no lure on that hook that looms tasty.

Mic · 03-17-2018, 12:15 PM

we did it...cuz we plan on using the invested value to purchase the place at some time in the future.

each his own.

may not be right for all.

find the place you like and stay..............

....

....

/

mikz86ta · 03-17-2018, 02:12 PM

You plan on owning a KOA Mic?

Mic · 03-17-2018, 02:21 PM

Would like to if it was the nice ones round here

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