money- financing and credit hijacked thread

[campingwilliamsons]

It is not just RV dealers, car dealers have gotten just as bad. The last two vehicles we purchased, I had to hassle the heck out of the dealer to pay off my trade.

[JLud]

Ok just have to chime in on the loan issue. Heres my take; If I can borrow money at less than 3 or 4 percent, I am in effect beating typical inflation already on the money. What that can mean is that even though the vehicle is depreciating, the cost of a new one continues to go up.

Now on my house, I pay a rate of 1.75%. I bought a nicer house than i would have if I paid 5%, no doubt. In this area, about 2-3% raise in house values currently ( I know it can rapidly change), but using the banks money I am actually earning money on it in a strange way assuming my appreciation rate stays above 1.75%.

So lets say you take a 15 year loan at 3.99 on that camper...you get to use it for 15 years, you pay your finance fee, and even if you didnt pay it off early, I would feel that if you bought that same camper 15 years later, the price would have inflated beyond what you paid in principal and interest. RV rates are higher, as they are expendables, and when something bad happens, people usually ditch those payments first.

I am all about having 2 car loans at 1.89%, my cash invested the last few years (post 2008) has been pulling in about 16%.....

[JLud]

Oh and to add to the enjoyment part...we have young kids. I can not make a 5th wheel on paper a solid investment...it is a depreciating asset, there is no argument. What I can argue is that my kids will be young only once, and I am not getting younger myself and who knows what can happen tomorrow.

If you can handle the payments, but get the RV of your dreams instead of settling for the used bargain, why not? I am cheap by nature, and having bought bargains...have you ever went and bought what you really wanted? It feels great, and you dont have that urge to trade up or get something new.....

[French]

Wow sorry guys this "live for today" reasoning is not healthy and totally wrong headed IMHO.

Using this logic we should not worry about tomorrow and get way upside down in an RV loan because it will create wonderful memories. I think we should all all begin "to act our wage".
Unless the family memories we cherish are arguing and worrying about paying for a quickly depreciating asset we cannot afford and never really could. I'm just sayin.... Willingly getting into an 15 year RV loan ... Really? How can that possibly work out well?

[JLud]

I guess I figure I save a lot a month for retirement already and have a healthy nest and a pension. Putting 10k down on a fiver pretty much keeps you ahead of depreciation, and 300 a month on a payment is not much at all.....if it is, don't buy it in the first place. Not all are in the same boat, 300 to some is a lot. Not suggestin anyone should buy more than they can afford, but also saying if you go by strictly math you will never get any rv as they all cost money.

[JLud]

Hey, the government spends my money irresponsibly and I pay them to do it.....at least when I do it I get to have something

[MillerTime]

Originally Posted by French

Wow sorry guys this "live for today" reasoning is not healthy and totally wrong headed IMHO.

Using this logic we should not worry about tomorrow and get way upside down in an RV loan because it will create wonderful memories. I think we should all all begin "to act our wage".
Unless the family memories we cherish are arguing and worrying about paying for a quickly depreciating asset we cannot afford and never really could. I'm just sayin.... Willingly getting into an 15 year RV loan ... Really? How can that possibly work out well?

Or you can always pay ahead, but have a lower payment if needed. And put down 20% or more.
I've never carried a loan to term in my life and most payed off in less than 3 years.
Just because I could pay cash for my campers, I'd rather have a cushion to fall back on.
(Oh, and I've never had a 15 year rv loan)

I agree that some loan terms are getting a little crazy, like 96-108 months on auto loans. But I guess it makes sales and gets people below the income to debt ration that the would need. Whatever it ain't my money.

MillerTime- Future Sabre Handler!!

[OL Creeker]

There was no financing when we purchased our CC. BUT! We did have to deal with TX DMV. They were sent all requested info. We bought our CC in AZ. The 60 day tag was about to expire when I called TX. They hadn't completed the process because we hadn't included proof of GVWR - we did - they missed it. Had we not called, we would never have seen our tag either. Laziness is everywhere.

[ironj]

heck way back when i traded in my old gmc sonoma to a lot......about 3 month later i started getting bills for parking tickets!! the damn thing was still in my name!! i shoulda went and repo'd it.....LOL.....

and when i bought my truck i paid half of it cash and financed the rest with ford at 0% ......id finance every dang thing for 0%...LOL....

Sent from my Transformer Prime TF201 using Forest River Forums mobile app

[dustman_stx]

Originally Posted by French

Wow sorry guys this "live for today" reasoning is not healthy and totally wrong headed IMHO.

Using this logic we should not worry about tomorrow and get way upside down in an RV loan because it will create wonderful memories. I think we should all all begin "to act our wage".
Unless the family memories we cherish are arguing and worrying about paying for a quickly depreciating asset we cannot afford and never really could. I'm just sayin.... Willingly getting into an 15 year RV loan ... Really? How can that possibly work out well?

I don't "not worry about tomorrow" but I'm not willing to sacrifice NOW for a tomorrow that isn't guaranteed. I know WAY too many people that live like paupers and don't enjoy any of the fruits of their labor because they are sticking it into some account banking on a retirement that may or may not even come. I'm not advocating NOT having a retirement, but I honestly don't give a rat's rear end if I have 10 million in the bank when I am retirement age. I plan to only put away enough to live comfortably- as in lower middle class comfortable. If I make it that long- I hope and pray that I can enjoy camping in my $20K (in 2014 dollars) travel trailer with my kids and grandkids. My plans don't involve buying a $500K motor home and seeing my kids and grandkids only on major holidays.

And since you ask- here's how it can work out well on a 15 year RV loan. In my area, a camper that sells for $25K after heavy negotiating can be purchased from a wholesaler for $20K. I've already put 20% down without paying a dime. Worlds of people would pay more like $28K and still be behind me even with a 20% down payment. I can camp in that camper for 3 years and keep it meticulously clean and maintained and sell it for $16K+ at the end of that time. Some of us get lump sums of cash in the forms of bonuses or additional small jobs that can be applied here and there to put toward principal, easily keeping the loan balance in line with it's depreciated value. The low payments allow us to not be over our heads with monthly payments from our regular income source. Therefore, my family and I aren't out "arguing and worrying about paying for a quickly depreciating asset we cannot afford and never really could". We're out camping in a really nice camper and enjoying our time together while we can.

[fx2]

I wish people would get off of the "my way is the right way" and "all credit is bad" mentality. Someone else's choices may or may not work for you.

I, for one, do have a 15 year loan on my TT. I have it because my CU required that any loan between $XXX and $YYY was 15 years. Does that make it foolish? Some would say yes. Others would understand that I put 30% down and will be paying SUBSTANTIALLY over the scheduled payment.

I also have 2 car loans, one 4 year loan and one 5 year. That, on paper, may be foolish to some. However, once again they would be wrong. The cars are both financed at 2% and I have substantially more cash than all 3 loans combined that is sitting in Schwab earning a 5 year average return of 14.75%

Judging others because it does not fit your mold is foolish.

Let he who is without sin cast the first stone.

[davel1971]

Originally Posted by fx2

I wish people would get off of the "my way is the right way" and "all credit is bad" mentality. Someone else's choices may or may not work for you.

I, for one, do have a 15 year loan on my TT. I have it because my CU required that any loan between $XXX and $YYY was 15 years. Does that make it foolish? Some would say yes. Others would understand that I put 30% down and will be paying SUBSTANTIALLY over the scheduled payment.

I also have 2 car loans, one 4 year loan and one 5 year. That, on paper, may be foolish to some. However, once again they would be wrong. The cars are both financed at 2% and I have substantially more cash than all 3 loans combined that is sitting in Schwab earning a 5 year average return of 14.75%

Judging others because it does not fit your mold is foolish.

Let he who is without sin cast the first stone.

THANK YOU. Was also getting tired of getting schooled on finance. I figure as long as we go to work and earn our money, it's ours to spend how we wish. I also have a 15 year RV loan after putting $8000 down. 7 year loan on my truck. 3 cars that are paid for. If I had all this while collecting food stamps and welfare, now that would be the wrong way.

[rockfordroo]

Let he who is without sin cast the first stone.

I'm debt-free.

[MillerTime]

Originally Posted by rockfordroo

I'm debt-free.

Thats pretty sweet!
I hope to be there in hopefully less than the 28 years left on my house!

MillerTime- Future Sabre Handler!!

[fx2]

Originally Posted by rockfordroo

I'm debt-free.

You completely missed the point.

I could make the same argument - my cash on hand far exceeds any debts. That doesn't give me the right to judge others. Get off your high horse and get back on OP's subject.

[davel1971]

Originally Posted by rockfordroo

I'm debt-free.

SO WHAT. That doesn't mean you are any better or having any more fun than those of us that aren't.

[OL Creeker]

A couple of you sound like my 6 & 7 year old granddaughters!

[rockfordroo]

Interesting replies here. My original post stated:

It's also good to never finance for any more than 3 yrs. {If you go more than that, chances are good you're buying more trailer than you can really afford.) Then when it's time to move up (assuming you can go 3 yrs without moving up) it'll already be paid for.

Please read it carefully. I did NOT say don't go into debt for an RV. I did NOT say you can't have outstanding credit. I did NOT say DON'T EVER go into debt for more than 3 years. I did NOT say this applies to everyone.

ALL I SAID was that if you need to finance for more than 3 years, I believe you MAY be buying more RV than you can really afford. Of course, some folks may have lots of $$ and may find it advantageous to go more than 3 years, but I'm pretty sure they are few and far between.

And given the tone of some of the responses above, I suspect there are a number of responders who HAVE bought more than they should and they are "guiltily" defending themselves.

[parpar1]

"ALL I SAID was that if you need to finance for more than 3 years, I believe you MAY be buying more RV than you can really afford"

To live like that either takes some good coin or everything bought is older. I can't even pay a $20,000 truck off in 3 years and i think i get paid pretty darn good. Well maybe a could but then i could not pay all the loans and credit cards i have.

[OldCoot]

Regardless, it is nice to be completely debt free with only monthly utility, insurance, etc. bills to handle. Took 35 yrs to get there and we enjoy it. Our system is we pay cash for whatever we buy.