We are looking for answers to this question.

If a customer walks on to your lot and has a 720 credit score (top tier) and wants to buy a $50,000 unit, and it is a LQ Trailer his rate and term are 8.24-9.74 for 180 months.  If that same customer decides to buy something with the words "RV" in it, the same lenders rates become 6.99-8.49 for 240 months.  Same customer, same dollar amount, but we (as the trailer industry) get penalized BIG by the rate and term.  The differance in monthly payment alone is almost $100 PER MONTH.

AND, the RV has another 60 months of interest so it probably comes out to the same money, unless the RV is paid off early of course.

Saying that, if they call it a 'second home' and my home mortgage is at 5.9%.... The RV/LQ trailer interest rate should reflect a 'mortgage' rate too!

My thoughts Exactly, but sounds like the NATDA is looking for gimmicks to sell trailers with, they might want to call Sundowner they have used every trick in the books. What about a rebate after 3 years of financing?

If you need 15 yrs. to pay for your trailer, you don't need the trailer.

Tripper, I cannot speak for others, but I am in no way saying I am so wealthy I can just go out and write a check for a $50,000 trailer. I could get approved for such a loan, but would not want to. The trailer I have cost $6500 and fits my budget nicely. The same goes for a pickup. I cannot write a check for a $45,000 pickup, and I don't want a payment, so I drive a $15,000 pickup.

If the NATDA is working for more options for dealers and consumers, that is excellent. Good for them and everybody. I just don't happen to benefit from lower interest rates and longer terms.

i doubt i qualify as wealthy either, but i did save my pennies (and bonus), and after pulling used trailers my whole life i wrote a check for my shiny new $8K trailer......however i do have a 3 year note on the new to me duramax, so im not opposed to being in debt.  i DID NOT arrive in my comfortable position by getting a 15 freakin year loan on a "toy" like a horse trailer.  its a free country and being in debt is the american way. i doubt that i, or very many other people, will get excited about something so trivial as the 1.25% difference being questioned as unfair.

If I couldn't spread my payments out over several years,I couldn't have a trailer.I don't want to wait at my age to "save up" and pay cash for one.Then be sitting in a nursing home wishing I'd had some good years enjoying a LQ trailer.If I live long enough to make it into a nursing home.

Financing terms are an individual's decision. 

Hey,I'm glad for once somebody sees it the same way and isn't always trying to be at odds or argue over a signpost on here.

Yeah,that's fine,if you want to go for less trailer and pay for it,or a used truck,or whatever you want.I think it is good and prudent not to have a bunch of debt.I however,am in a second marriage rather late in life,and we built a house,bought a dually,and bought a LQ.I'd like to do some things I didn't get to do the first time around before like I said,I'm in a nursing home .Having had cancer and going thru treatments last yr,(and NOT asking for sympathy here at all,just making a point: )I don't advocate throwing all caution to the winds and going to the poorhouse,neither do I advocate living like my brother,like Scrooge.Having a life threatening disease made me see life from both sides now.Guess this got pretty philosopical for a financing question,didn't it? sorry.Just like to see a bigger picture.If you want the big trailer for 12 years,I say,GO FOR IT.May not have 12 years to enjoy it.

That very well could be a reason. 

Do horse trailer owners trade in or pay off their trailers more often than an RV owner.

Our observation  has been the average horse trailer owner keeping LQ trailers an average of 4-6 years, and non LQ trailers 8-10 years.

Whether someone wants to pay cash or finance a trailer is their personal choice.  We are pointing out and working towards equality for our industry. 

The NATDA's primary purpose is giving the dealers the very best products, services, education and training so that they can provide the best service and experience to their customer, the trailer buyer.

Message in a bottle

Although I’m the first to get excited about a conspiracy theory – I find it hard to believe there is a collaborated effort by financial institutes to deliberately limit very long term financing in the Horse Trailer Industry.  Banks make money on interest, the longer the loan - the more money they make.  However, they measure risk versus reward. Banks have offered 240 month financing for Horse Trailers  – some I believe still do, while others don’t, and some banks have abandoned the industry altogether (I’m sure it wasn’t b/c they were making to much money – perhaps the risk department stepped in). 

I believe banks have been financing $75k + RVs (which is a good # to start talking about 240 months) for several decades, while horse trailers with Living quarters have only recently skyrocketed past those figures.  This means over the last 5 to 7 years banks have limited history to evaluate their risk vs reward.  I think some banks have realized the risk becomes huge when a horse trailer is repossessed.  I think the wholesale / repo market for RVs is a little less painful than the trailer industry.  How many dealers would be willing to buy a 2-4 yr old LQ trailer that was sold at 20% margin, no money down, plus an extended service contract, and gap insurance (and possibly some funny business to account for the negative equity on the trailer they traded in).  Probably not many - which is a great way for the industry to reward a lender. Negative Equity is a serious problem in our small industry (a lot fewer potential HT LQ buyers than RVs).  These longer terms some are fighting for is probably why the industry has slowed and several major mfgs have had to lay people off.  I believe people that took advantage of the lower payments available from long term (180 month and longer) and now realizing they are stuck in their trailer for much longer than they initially planned or will have to put a huge down payment to get out of their current trailer (something most people aren’t capable or willing to do).  Someday, when you are bored – I encourage everyone to find an amortization calculator and compare a 144, 180, and 240 month loan - look at your payment, look at what you pay in interest, and look at your balance at different increments.  It’s amazing how much easier it will be to trade trailers when you want when you paid that extra $100/month.

As an industry, who is our priority - Customers, Dealers, Trailer Manufacturers, Finance Service Providers, or Lenders?  How do we serve the best long term interest to that party?  Whoever it is, it can’t be by burying people in a trailer that they can never get out from under.

Yes and if you want a real shock,look at the difference on a home mortage in the interest paid over the life of a 15 yr vs 30 yr mortgage.

A home fortunately,most of the time,accumulates equity that trailers and RV's don't however.

I am a truck dealer..... not trailer...but, the best way to finance something....go to a local credit union... not bank! and get the money..... you may not get the long term but you will get the lowest rate....I look at it like this... people buy a $100,000 house and pay $1000 a month for 30 years....or $360,000 for it. Sounds crazy,but most people do it that way and are fine with it... its the "American" way!!! If the payment fits your budget and you happy with it , who cares!

Are you speaking of a fixed rate or variable rate loan for your trailer??

You have not discussed at which month of the loan for your $50,000 unit "goes underwater"...(when you owe more on the item, than the item is worth and what your insurance company will reimburse you for, if it becomes a TOTAL LOSS)

The residual value of the item has GREAT influence on how long and at what rate a bank/credit union will finance any item...

Our credit union quotes a VARIABLE rate loans for RVs and LIMIT loans to 15 years, and I guarantee the rates WILL increase over the life of the loan...(see below)

Lots of lenders have reassessed their practices due to the mortgage crisis in our country.  Just because they'll lend you the money doesn't mean it's what you should do.  People went out and got in way too deep on a house, can't afford it and now are selling them so the housing market (in North Texas) is flooded!

If the industry does not regulate it's crazy financing we are going to have a major industry crash, it's like the 1980's all over.

Some people are spenders and some are savers...this is the only thing both sides will agree on.

If the banks want to charge a higher rate because horse trailers get used and abused by animals, then so be it.  If you don't like the rates, don't borrow others money.