I have a 800+ credit rating and am looking at a new $30000 trailer.  The finance company has offered me a 8% loan for up to 144 months. 

Are there better rates out there and how can I find one?

Do you generally have to use the financing company the trailer dealership uses?

If I decided to buy a new $10000 trailer could I get a better interest rate or does the amount one is borrowing have anything to do with the loan interest rate at all? 

How does the current economy affect finance company interest rates?

A financial wizard I am not.

Thanks for your expertice!

They are a bank that primarily makes loans such as auto and mortgage.Banks are funny about loaning money on something like a horse trailer or RV for this length of time as dixie has said.

In this credit crunch that is going on,8% is a good rate.If you can do better elsewhere,go for it of course,but,you're going to be looking for a while,I believe.

8% seems very good!

We got a 4h slant BP last summer $12.6K financed at 9% for 144months(credit score in the mid 700s). However, we went with 12 years just because we wanted a low payment in case of cash flow problems. We are actually paying more than double the minimum payments so that the financing at the end will only cost us a 14% premium (around 3 years to pay it off since inception) rather than the almost 70% that it would cost to go with the normal payment.

Try looking into CC as well, you might be able to sign up for a few with 0% for 12 months or so and maybe 7.99% afterwards and you might get cash back and other perks.

As other said, try to either put a lot down or overpay the monthly payments, but make sure that the loan is "simple interest" and there are no pre-payment penalties

Genebob,

If or when the Feds reduce the prime, how does that affect interest rates on trailers and the like? 

I can honestly say that much of the information provided in this forum is truly accurate.  Unfortunately, the equine finance industry has not seen the direct effects of the fed cutting rates.  We hope that we will begin to see these changes, but we have not as of yet.  The RV rates have just started the decline and hopes are that the equine rates are to follow.  The problem with these types units is that the lenders do not understand the product or the industry.  The majority of lenders view these items as "luxury" or "pleasure" when in reality to many, they are a neccesity.  That is partly why interest rates are higher than others.  You may have luck going to a credit union or local lender, but as indicated, you won't get the term you may need to make the payment fit your budget.  I don't believe that 8% is a terrible rate.  Some of the things you may be able to do to lower the rate are: (1)Put money down -- In some cases, 10-15% down will make you eligible for better interest rates. (2)Go a shorter term -- I know payment is a concern, but sometimes shortening your term to only 120 months versus the 144 will make your loan fit programs that offer lower rates.  Please give us a call should you have any additional questions about financing or to see if we can help you get the best rate and term possible for your horse trailer. 

All Roads Capital

1-800-619-4104

The Fed lowers the Overnight lending rate between banks.  Typically the banks then lower their Prime rate - which is variable.  When financing a horse trailer, most purchasers are looking for a fixed rate loan for a longer term (5 years, 10 years, 15 years) so the actions of the fed do not equate to a one-for-one lowering of the rates you are looking for.

The slope of the yield curve - in this case probably Treasuries - are responsible for the higher longer term rates.  Add to that widening credit spreads due to home loan fiascos and rates will not be lowering as quickly.

Furthermore, as others have mentioned, trailers are difficult to value.  Two of my local credit unions will not consider financing a horse trailer without living quarters at any rate.  Fortunately, the other credit union we also frequent will.  Shopping around is a good first step.

But keep in mind no financial institution is going to make a loan at a rate that doesn't compensate them for the risk they are taking on their balance sheet.  And while your individual loan might not amount to many dollars - the portfolio of these loans may.

ALL ROADS CAPITAL!  Talk to Shannon S., she was a ton of help!

2007 TRAILS WEST 8X13 AMT SLIDE OUT 4 HORSE, HARD LOADED WITH DROPS ALL AROUND, GENERATOR and ALL OPTIONS! (60-K)

The % rate does depend on credit score AND amount financed many times. We suggest calling your local credit union/bank and see what their rates are, but again, they wont go as long as a larger financing company.  8% for 144mos is really pretty good..   We are a dealership and offer use of one company, but always suggest to our customers to check w/ their local bank as well.

On another note, here is something else to think about:

Make sure whoever you choose, they do NOT have a prepayment penalty, that way, if you do find a better rate down the road you can refi the loan without a penalty..