5 Things You Can Finance with an Auto Loan ... - Go Banking Rates

Let?s face it ? some of life?s major purchases require a bit of assistance, like financing a new or used car with the help of an?auto loan.?But if standard modes of transportation such as a sedan or pick-up truck just aren?t grand enough for your tastes, there are actually a handful of other ways a?car loan?can help you get around. A common misconception of vehicle loans is that they?re strictly reserved for daily-driver type cars; however, financial institution can also offer vehicle loans for a more unconventional set of wheels.

While you may not necessarily be in the market for a brand new yacht or dune buggy,?financing an auto loan?to purchase life?s little extras can go a long way when you finally hit the lottery jackpot.?Here are five types of vehicles that banks can cover via auto loans:

#1. Motorcycles

According to The Motorcycle Industry Council, Q1 2012 motorcycle sales totaled 102,125 units in the United States. As a popular alternative to traditional cars and trucks, motorcycles, despite their lower price point, may require financing with the help of an auto loan. Many national and local banks and credit unions provide lending aid when it comes to this kind of purchase.

What to Know:?According to Wells Fargo, which offers motorcycle loans to qualified customers, the process of obtaining motorcycle financing is very similar to?financing an auto loan, in that applicants will need their personal information (name, address, Social Security number, residence status, etc.), as well as employment and income proof and information regarding the motorcycle (i.e. year, make and model, purchase price, etc.).

(Photo courtesy of?Monster1000?via Wiki Commons)

#2. RVs

An RV is a shortened term for recreational vehicles, which are often used on leisurely trips. They are street-legal, but also offer all the conveniences modern day travelers have grown accustomed to, such as a full kitchen, bathroom, living space and bedroom area. In 2011, an estimated?8.9 million households owned an RV, reports the Recreational Vehicle Industry Association.

It?s important to remember that since an RV is commonly classified as a specialty vehicle rather than an automobile,?auto loan rates?may be slightly higher.

What to Know:?Bank of America?finances this kind of vehicle, which is often considered a luxury purchase. In addition to basic contact information, of the primary borrower and co-applicants, individuals seeking out this kind of auto loan will need their driver?s license information, employment and income?verification? and must identify whether the purchase will be made through a dealership purchase, private party or if the RV is being refinanced.

Furthermore, RVs, like cars, are considered collateral for the loan and certain qualifications may apply. For BofA the requirements are as follows:

• Maximum age is 7 years for loans under $150,000; maximum age is increased to 10 years for principals at$150,000 or more
• Vehicle loans for commercial RVs are ineligible, as are RVs used as the borrowers? primary residence
• RVs with a salvaged, rebuilt or branded title are not qualified
• RVs manufacturers must still be actively in business (i.e. cannot have gone out of business or filed for bankruptcy)

(Photo courtesy of?Ildar Sagdejev?via Wiki Commons)

#3. Boats

Boats are also considered luxury vehicles, but are regularly financed by auto loan lenders. Like RVs, boats are given their own interest rate tiers separate from auto loan rates offered on cars and trucks. At Bank of America, rates for a $10,000 ? $14,999 boat loan start at 5.14% APR, depending on your credit score and other approval factors.

What to Know:?The eligibility requirements for boats under BofA have various age requirements based on borrowers? loan amounts, such as a maximum 7 years of age for loans under $100,000 to as much as 20 years for boat loans over $250,000, which other financial institutions will likely also require. Commercial and business boats do not meet the banks qualifications for this type of auto loan, nor do racing or high-performance watercrafts.

(Photo courtesy of?Andrew (Tawker)?via Wiki Commons)

#4. Motor Homes

According to the Family Motor Coach Association (FMCA), banks and credit unions typically regard motor home owners as ?a?very reliable customer,? noting that as a result, monthly payments and loan terms tend to be more flexible compared to conventional auto loans. Unlike RVs, which are more for recreational use, motor homes are commonly used as primary residences.

What to Know:?Some financial institutions cap existing mileage on vehicles being financed. Bank of America, for example, set the maximum mileage for gasoline-powered motor homes at 50,000 miles. Down payment requirements are similar to that of conventional car loans, but can offer borrowers a longer term duration for repayment.

?Most motor home lenders require a 20 percent down payment on loans of more than $100,000, 15 percent on loans less than $100,000, and terms ranging from eight to 15 years,? according to the FMCA, and ?many new motor homes can be financed with a 20-year term.?

(Photo courtesy of?Charles01 via Wiki Commons)

#5. Airplanes

It would make sense that most individuals who want to buy an airplane won?t even need to go through vehicle financing, and can simply pay for the aircraft in cash. However, for those who still want to partake in this level of?extravagance, banks and other financial institutions can provide the kind of help you?re searching for.

What to Know:?When applying for vehicle loans for private jets and airplanes with Bank of America, borrowers need to note who the seller is, the year, make model and the N-Number of the plane in question, as well as the standard information necessary for initiating a basic car loan.

(Photo courtesy of?AlCapone31?via Wiki Commons)

Source: http://www.gobankingrates.com/auto-loans/5-vehicles-financing-an-auto-loan-motorcycle-rv-boat/

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