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 The One
Posts: 7998
    
Location: South Georgia | I am in the market for a new (well, new to me) trailer and I am wanting to be around $6,000. How would one obtain financing on a trailer in this price range? I did some online research and found a company that finances horse trailers, but their minimum is $7500, and I dont care and/or need to spend that much. Would the normal banks finance a trailer? How do I do this? What is the norm?
Edited by horsegirl 2017-04-10 9:34 AM
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  That's White "Man" to You
Posts: 5515
| Yes banks like to make loans. Plan on a down payment, requirements differe from bank to bank but most will expect 10%-25%.
How to do this: Go into the bank and complete a loan application, provide information on the trailer, provide proof of income. Its a pretty simple thing.
If your bank doesn't know how to do this...its time for a new bank.
Edited by Whiteboy 2017-04-10 9:39 AM
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 Hummer's Hero
Posts: 3071
Location: Smack Dab in the Middle | I financed my last two at our local credit union. They set it up like any vehicle loan (used in my case), same rates and terms. They asked me to find ads for several similar trailers to get an idea of value, since there is no "blue book" for trailers. They have had no problem financing for me, but I have excellent repayment history with them--I've paid back all my loans early, and on my trailers I've never had to borrow more than half of their estimated value. |
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The One
Posts: 7998
Location: South Georgia | Thanks y'all. I wasn't sure it if being a horse trailer would prevent the normal banks from looking at it. I'll certainly give them a call. I have no problem with a down payment and all that normal stuff. |
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 Ms. Marine
Posts: 4641
Location: Texas | If anything you should be able to request a loan through your bank. |
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The One
Posts: 7998
Location: South Georgia | This may be easier than I anticipated. With my google results, it pulled up all sorts of trailer finance companies, so I got the impression that banks wouldn't touch them. I'm relieved. |
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Married to a Louie Lover
Posts: 3303
| My first trailer loan was through the local bank I used. It's been a while, but I think it was set up as a personal loan. Interest rate wasn't terrible, but not as good as an auto loan. But yeah, in that price range that's how I'd do it.
My LQ is financed through US Bank and the dealer we bought it from secured the financing for us. |
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 Not Afraid to Work
Posts: 4717
| I financed a trailer that I bought at an Auction without realizing how difficult financing would be. I personally wouldn't do it again. I have great credit but there are a lot of rules. Minimums, over a certain year, types of living quarters, etc. I ended up going threw my bank with a personal loan and my interest rate sucked. Not terrible for personal loans or anything but I pay a lot of interest on it. I likely would only go through a dealer if I and when I buy again. |
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The One
Posts: 7998
Location: South Georgia | I wish there were any dealers anywhere within a reasonable distance of me. The closest area is 2.5 hours away. I just have a hard time with dealers because (1) they charge a premium, and (2), I am a bargain shopper and I can occasionally find great deals from private sellers. I understand what you are saying though about having a dealership finance it. |
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 Extreme Veteran
Posts: 338
Location: NE TX | I just went to my bank and said this is what I want to pay per month, I know I need to stay under this amount of money total to get this accomplished (for me, my max was $5k), and when I found the trailer they did the loan based on the amount agreed upon by me and the seller and I took them a check from my bank after all the loan paperwork was filed. In two years I'll have it paid off.
Banks are really good to work with you most of the time, some have higher interest rates though. |
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 I hate cooking and cleaning
Posts: 3314
Location: Jersey Girl | The dealer provided what I needed to finance. Easy peasy. |
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| I bought a new stock trailer a while ago (prob 8 years or so) for around $4000 and used a line of credit called funancing. They do motor cycles and ATV's, boats, etc. I'm not even sure if they are in business anymore. It's basically a credit card so the interest is a bit higher, but I paid it off quickly. If you go this direction you will want to definitely make more than the minimum payment. |
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That's White "Man" to You
Posts: 5515
| What size of payment and interest rate are you expecting? |
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The One
Posts: 7998
Location: South Georgia | Whiteboy - 2017-04-10 1:21 PM What size of payment and interest rate are you expecting?
Less than $200 and I'm not sure on interest. My credit rating is a 794, so I usually get very low interest on anything I do. |
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That's White "Man" to You
Posts: 5515
| horsegirl - 2017-04-10 12:30 PM Whiteboy - 2017-04-10 1:21 PM What size of payment and interest rate are you expecting? Less than $200 and I'm not sure on interest. My credit rating is a 794, so I usually get very low interest on anything I do.
You will do fine. Just rememer on that size of loan the interest rate will seem high, probably 8-10%, but because of the dollar amount and short term you will pay less than $1,000 in total interest.
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 I Prefer to Live in Fantasy Land
Posts: 64864
Location: In the Hills of Texas | RockinGR - 2017-04-10 9:40 AM I financed my last two at our local credit union. They set it up like any vehicle loan (used in my case), same rates and terms. They asked me to find ads for several similar trailers to get an idea of value, since there is no "blue book" for trailers. They have had no problem financing for me, but I have excellent repayment history with them--I've paid back all my loans early, and on my trailers I've never had to borrow more than half of their estimated value.
http://www.horsetrailerbluebook.com/Page/Welcome-Page?ReturnUrl=%2f
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Hummer's Hero
Posts: 3071
Location: Smack Dab in the Middle | Nevertooold - 2017-04-10 2:32 PM
RockinGR - 2017-04-10 9:40 AM I financed my last two at our local credit union. They set it up like any vehicle loan (used in my case), same rates and terms. They asked me to find ads for several similar trailers to get an idea of value, since there is no "blue book" for trailers. They have had no problem financing for me, but I have excellent repayment history with them--I've paid back all my loans early, and on my trailers I've never had to borrow more than half of their estimated value.
http://www.horsetrailerbluebook.com/Page/Welcome-Page?ReturnUrl=%2f
This wasn't around when I bought mine ;) It's been a couple of years...
I have found both my big trailers through HTW, and my little one on Facebook. I just searched similar trailers on HTW and printed out the ads. That was all my loan officer wanted, just to see what similar brands and setups were going for. I borrowed less than $20k of my $55k+ trailer, so he had no problem writing my loan based off similarly priced ads...they wrote it like a used vehicle loan. I think it was 5.9% for 4 years, maybe it was 5, I can't remember. But I'll show them this if I ever buy another one :) I'll have to explore it...not sure if it's something that can be used by an institution that doesn't regularly write trailer loans. |
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Industrial Srength Barrel Racer
Posts: 7268
| Nevertooold - 2017-04-10 2:32 PM
RockinGR - 2017-04-10 9:40 AM I financed my last two at our local credit union. They set it up like any vehicle loan (used in my case), same rates and terms. They asked me to find ads for several similar trailers to get an idea of value, since there is no "blue book" for trailers. They have had no problem financing for me, but I have excellent repayment history with them--I've paid back all my loans early, and on my trailers I've never had to borrow more than half of their estimated value.
http://www.horsetrailerbluebook.com/Page/Welcome-Page?ReturnUrl=%2f
I didn't know that existed - although it looked like it costs to use it. |
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The One
Posts: 7998
Location: South Georgia | I called the bank yesterday afternoon and asked them about a loan. First, she didnt know that trailers had titles. She thought they had CC's or CO's (cant remember which), whatever that is. I corrected her. Then, she couldn't figure out what category to push the loan as--I finally suggested RV/Boat because she had tried to originally do it as small farm equipment. And then she said they could only do 36 months financing. So...not sure where to go next. I probably need to call different banks in town, but I do bank with one of the largest and most prominent, so I figured they'd be the best bet.
Edited by horsegirl 2017-04-11 7:37 AM
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Elite Veteran
Posts: 729
Location: south central usa | your smaller "community" banks are going to be able to handle these types of loans better as most of the time you are not working with someone who is looking on a computer screen trying to figure which loan to select in a drop down box like someone may be doing at a national branch bank.
Most of my oddball loans have gone through a bank that has 4-5 branches and the president handles half of the loans...
my other option for a loan has been our local credit union ...my last horse trailer they financed as an RV and I got 3.9% (loan was 4yrs)
if I was looking to go more than 5yrs on a trailer loan, I'd probably buy from a dealer that has a solid network of companies that they use for financing |
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