Financing a Trailer

If you are purchasing a trailer from a dealer you can usually get financing right from their dealership. Taking care of financing for a trailer right then and there is usually the easiest and most popular choice, as you can take your new trailer home the same day. If your dream trailer will cost more than $5,000, you may want to do a little research on the following:

• Get the Trailer Appraised- It is tougher to get the true value of a trailer than a car, as there are less similar sales to compare to. Start with the manufacturers suggested retail value, then reduce the value based on the trailers age, miles if applicable, and the general condition of the trailer.
• Compare Rates- If your dealer doesn't have a suitable lending option for you, or if you are purchasing from an individual, you may want to talk to at least one loan broker who specializes in trailers/atv/RV loans. They often handle a high volume of these smaller loans and can expedite the process and can often beat loans direct from the bank. Hint- most trailer dealers work with these loan brokers so you may be able to save on closing costs by doing a little bit of legwork and going directly to them.
• Check Your Credit Score- The rate that you end up getting primarily depends on your credit score, with the higher your score the better rate you will get.
• Your Down Payment- The more money that you put down initially will also affect the loan process, and you will end up paying a lower interest rate if you put down more money up front and it will be easier and faster to get the loan approved.