Hi I have a question.....is there anywhere that anyone knows of that really works with you on your credit when trying to buy a trailer??? My hubby and I don't have the best credit just because of hospital bills...I know that some auto sellers are going to guranted approval but I didn't know about trailers?!? Thanks!!

A trailer is considered a luxury item. There are some out there, but look out on the rates.

And they should be.

Because if you buy a $50,000 trailer on 240 months no money down, in 5 years when your trailer is worth $30,000 you will still owe $42,000, so now here you are upside down on a trailer. Banks that lend their own money don't want you to be upside down on anything because that is their collateral.

Longer term lending inflates the real values. It must maintain a high resale value for a to be able to trade or sell. 

Zero down is what has hurt the whole market, cars, houses, trailers, boats, rvs....car financing at zero down is a no no. Unless you only finance 36 months. That is why you can buy gap insurance now for being upside down, or underwater, or whatever they want to call it. To me...anytime you owe more than what something is worth, there is a recipe for problems.

Now, when you combine zero down with long term lending...values on used items have to inflate even more. As someone said in another post...it appreciated instead of depreciating.

If an item is repossed and has to sell at half of it's value, it is then time to adjust real values. That is what we are seeing in the housing market right now. Lending does not have to be the way it was for the whole market to work. If you borrow, borrow short, not long. If it is too much of a payment, then you should be questioning if that is what you can really afford and adjust your wants. If you can't afford to put the down....you can't afford to make it a few months with no income should something happen.

The banks won't let you do this anymore, can you blame them.

QUOTE]Originally written by tr0y on 2009-04-10 3:34 PM

HWBar -

............without lending we get what we have now, sub prime lending.............

I don't know what this means? If you have stellar credit, and reserves as you say, then you are probley smart enough to know why the banks have stopped loaning 100% for 240 months. The banks need a little better than a cheap return.

Because if you buy a $50,000 trailer on 240 months no money down, in 5 years when your trailer is worth $30,000 you will still owe $42,000,

Let's say you have an accident and total the trailer. How much is your insurance going to pay? $30,000. You are still paying $12,000 on a trailer you no longer have. Not a good deal to me.

If you have $85,000 in the bank or invested, I'd like to know where you are making 5%-7% on you money now. I'm sure not and don't know any body that is.

Edited by genebob 2009-04-10 9:53 PM