money- financing and credit hijacked thread

[ironj]

Originally Posted by BlakeB

I would hardly think anyone on an RV forum board would be really hurting for money.

Either way....you should ALL send your money to me and i'll keep an eye on it for you!

I just paid the ir robbery s.......ouch....call uncle sam and see if he will fwd you my pmt...lol.... :-(

sent from fat fingers via a space dish thing with no regard to grammer.

[PhoneDude 8289]

Originally Posted by chriscowles

If you're waiting for month 37 to make a balloon payment, don't. Make lump sum payments as early as you can, calculating how much to pay so payment 36 for the minimum required amount is the final payment. That minimizes the total interest you pay, without a prepayment penalty.

Chris

No balloon payment, they are all the same.

[zippyzrx]

I dont buy things i cant pay off in full at any time.
When a major expense crops up...its not a problem.

Cash is still king.

[Still Kickin]

Originally Posted by zippyzrx

I dont buy things i cant pay off in full at any time.
When a major expense crops up...its not a problem.

Cash is still king.

You, my man are what is called a "statistical anomaly" Seriously, the average person is in debt up to their eyeballs. And, most don't understand that the "rate" on a loan is almost meaningless. It's "time" in the finance equation, that is your enemy.

Do this simple test. Go to NADA, for recreational vehicles and look back, if your model is listed, and see how fast it drops in value over time. What you will find is tha tfor most RVs, the original new purchaser is upside down, as you near the 10 year point. And the hole gets deeper after that.

[ironj]

A large part of the issue is looking at an rv as an "investment".....its not...unless you buy a severly distressed unit or a severly old unit you going to lose money. (Not to mention the associated use/maintenance/mod costs! ).....im far from a "financial guru"....but I have exacly 0 wealthy/multimillionaire friends who do not utilize financing of some sort often....and i have a few!....every situation is different but we can all agree fianancing a "lifestyle" is a bad thing....its not necessarily the financing itself that is the enemy....ill finance a distressed property at a low rate in a heartbeat. ..and have never failed to break even or make money on those....but thats a huge difference than using 15% of your disposable income on a "toy" you may use 10 times a year and will NEVER see your money back on...paying "cash" for something just because you "can" isnt always the best strategy...even in a "luxery" purcahse like an rv/atv/boat...so I make it a point not to beat on someone for their use or NOT use of financing until I understand their situation/plans......well..I usually do...some financing institues out there PURELY PREDATORY...consumer beware.....and all that... ;-)

sent from fat fingers via a space dish thing with no regard to grammer.

[Radio]

Avoid US Bank at all costs. If you must finance, don't do it through these mean, nasty heartless folks.

I financed with US Bank on recommendation of the dealer.Two years into RV ownership my job went away. Two months later, my wife's job went away. All of my other creditors worked with me, except US Bank, who basically stated if I was 30 days late, ever, they would repo the trailer, sell it for pennies on the dollar, and sue me for the balance.

They could have let me make interest only payments, like my CU did, but chose not to. The CU actually made more money on my loan with them by working with me, getting 8 months extra interest they otherwise wouldn't have gotten. US Bank stupidly said NO.

Once I was financially able to refi with my credit union, who I should have financed with in the first place, I made US Bank go away.

And every time I get the chance I tell anyone who will listen to stay far away from them. If your bank or CU will not work with you, you probably need to get in better financial shape or get a cheaper unit. Anything but US BANK

[zippyzrx]

A bank will lend you an umbrella on a sunny day.
On the first sign of rain they will want their umbrella back.

This is pretty much how lending works.
Want to be free....dont get in debt.

[OldCoot]

Originally Posted by zippyzrx

A bank will lend you an umbrella on a sunny day.
On the first sign of rain they will want their umbrella back.

This is pretty much how lending works.
Want to be free....dont get in debt.

X2
Been lucky these last few years that if we can't pay cash for whatever we want, we don't buy it. If we don't pi-- it away before we kick off, the 2 boys can have what's left. Just don't want them to have to pay for something we couldn't afford.

[boatman]

I would say some of us are luckier than others I am very fortunate to have the things and people that I do in my life my truck and camper are 10 years old each but everything works is washed waxed and maintained and we enjoy them as much as any $100000 new rig.

[rockfordroo]

I'm glad you folks who posted today got on. If you haven't yet, you should go back and look at all the rants I got when I said the same things you did.

[dbarr]

Originally Posted by rockfordroo

I'm glad you folks who posted today got on. If you haven't yet, you should go back and look at all the rants I got when I said the same things you did.

Yeah, I've seen some really, really bad advice here.

[SKnight]

I'm in the financed for 15 years crowd, I also am nearly debt free (no cc debt, house payment and vehicle payment combined less than 20% of my salaried income) and I laid out a nice down payment.

I paid my first TT off in six out of ten years while going through a divorce. This one I predict I'll have paid off in about six years, I'll have the vehicle payment done next spring, the payment will go straight there along with half of my yearly sales bonus.

The secret to debt is the same as the secret of life. Do what works for you, wisely, with options weighed and measured. Some say cash is king, some scoff at the notion and exercise their credit. Some get in over their heads and guess what? They learn. I was drowning in debt after my divorce, I was advised to bankrupt twice by financial planners. But I didn't. I worked hard, paid off my debt and could have paid more down or just kept the paid off TT but I wanted to keep my cash reserve and got the 5er I wanted.

So do what works for you and be happy. Just don't look down your nose at me, I can poke holes in anyone's glass house just like a declined cell phone application.

[RollingDownTheHighway]

Our first TT we paid cash for, however, we paid ourselves that monthly payment into our savings account and then when we upgraded the TT we took the money and used for a down payment on our new one. Though we did finance the balance but its really no different then a vacation home or beach house payment.

Each way has pros and cons about them, it all comes down to your situation and if you want to buy outright or finance

[johnzendrac16]

Interesting topic. Well, I'm a fan of credit union, I started banking with about a year ago. I've been happy with their customer service and locations around town. Apparently, Credit union registration is becoming the “in” thing lately, as the past two years were tangled up with people getting rid of big banks for community based ones. They aren't exactly running in droves, but a steady stream is pouring out of the banking industrial complicated into credit unions.

[53jimc]

We just financed our TT with a Credit Union out of Chattanooga, TN, 5 years, 2.5%. They were the easiest folks I have ever dealt with for a loan. They loaned the same regardless if it was a private party or dealer and used NADA retail for the loan valuation. I had looked at the TT from a dealer, but crazy as it seems, there was the exact same model for sale by a private party within 2 miles of my home and it cost me $2300 less and he included a WDH in the deal.
So, overall for the 5 years the finance cost is just shy of $700, not a bad deal, the WDH almost covers that. I suppose it's always better to pay cash, but if you're like me and want it now, 2.5% is good.

The credit union at my work is terrible to deal with. Although the folks are nice, the loan application itself is unbelievably difficult to fill out. They want EVERYTHING on it... even your shoe size and the last time you had to take a "comfort" break. (jk, seems like it, though) Rates aren't nearly as good as the one we got, either.

[coffeebean43140]

A Quote from J. Paul Getty ( Use your money to buy thing that appreciate, use others people's money to buy things that deprecate.

[jimdd810]

I've read through this and decided to put my two sense in. As a tt can be used as a tax deduction I financed mine. I only financed it for 7 years. In which I hope to be able to early retire at 50. It works for me. As for others that may finance longer it gives people who might be tight on money an opportunity to enjoy the lifestyle.
We just bought our first tt this year. It's been the best thing for my family let alone myself. I would if financed a travel trailer for 50 years just to get the relaxation and family time that this tt has offered us. Just saying.


Life is a highway!!!!!

[DocsDad]

Financing crowd member here.

When we bought our Class C this summer we financed a long term loan as well. It was a hard decision. We are a modest income family and were not in a position to put a huge chunk of cash down. We would not have wanted to either.

That said...

Other than a very modest mortgage, we had no debt. The RV payment is largely covered with the funds available by having no cell phone contracts, no cable TV, no land-line, not eating out too often, etc. We have made sacrifices. Yes, we are saving for a modest retirement if we make it that long... but we must live this journey as well.

The places we have already gone this year, the new dreams, the relaxation, the memories created with our last child still at home and our grandson are priceless. We wish we would have spent more time like this with the other kids when they were young. Too late.

If I were to lose my job, then I'll need to re-group. So be it. It can be done, and it can be done without defaulting on loans and passing the buck. We'd likely sell the house, pay the RV off and downsize even further. It's in the plan already anyway.

Be responsible, but live the journey.

[dustman_stx]

Originally Posted by DocsDad

Financing crowd member here.

When we bought our Class C this summer we financed a long term loan as well. It was a hard decision. We are a modest income family and were not in a position to put a huge chunk of cash down. We would not have wanted to either.

That said...

Other than a very modest mortgage, we had no debt. The RV payment is largely covered with the funds available by having no cell phone contracts, no cable TV, no land-line, not eating out too often, etc. We have made sacrifices. Yes, we are saving for a modest retirement if we make it that long... but we must live this journey as well.

The places we have already gone this year, the new dreams, the relaxation, the memories created with our last child still at home and our grandson are priceless. We wish we would have spent more time like this with the other kids when they were young. Too late.

If I were to lose my job, then I'll need to re-group. So be it. It can be done, and it can be done without defaulting on loans and passing the buck. We'd likely sell the house, pay the RV off and downsize even further. It's in the plan already anyway.

Be responsible, but live the journey.

Excellent post.

[mud yapster]

I have been with my credit union for over 30 years and have done all my barrowing with them from cars/trucks,motorcycles, my land, tractor and just now our new 5th wheel. Low rates and pay the min. or pay alot extra every month they don't mind either way. I've always paid off my loans alot earlier mostly in half the time of the term.