Zero down financing. - Page 2

SilverbackMel · 07-25-2015, 07:14 AM

The end result is buy and finance what you can affird and wish to enjoy. Add in the happinness factor! We are fortunate to have no FUN debt! But it took us 65 plus years to get there. When we were young, we moved 15 times for corporate and lived in HUGE homes with HUGE mortgages. We had the toys; motorcycles, MC camping trailers, 28 ft boat at the beach and on and on....
We built unforgettable memories and forged friendships.
Point is: do what you want when you can and enjoy it. Life is short and every day of good health is a blessing!
Good health and safe travels!

vinmaker · 07-25-2015, 08:17 AM

Glad to see we have some finance people here on the forum.

Remember. Debt and Fees are both 4 letter words.

Best to stay clear of them.

Vin.

elind · 07-25-2015, 08:53 AM

We just bought a park model home and were going to transfer IRA funds to pay for it. Our advisor asked us what would the interest be if we financed it. He then said for us to finance it because our investments are paying more. If at a later date if interest earning is falling off we could then pay it off from our Roth IRA.

Beach Bums · 07-25-2015, 12:19 PM

We will be picking our our MH a week from Monday and still have not decided on finance or writing a check for it (yes, we realize not all can do this and we are fortunate....and for many many many years we could not either). We are leaning heavily towards writing a check possibly for a desire not to have to fiddle with monthly payments and knowing it is paid in full (well, less repairs, upgrades, gas, maintenance.....storage....etc..etc). We have been offered 4.25 for 20 years.....

hammer55 · 07-25-2015, 12:41 PM

you if can stay out of debt, perfect, but while the kids are young and families these days incomes are going down, and the price of goods are going up, a family will not be able to afford doing much of anything, so if plausible they should do what they can to make memories, like it was said life is too short, and money is a tool, not something to be horded, as long as they plan for retirement also, deductions are a scam, a flat rate tax would be a better option for America, and a person who pays off their mortgage in this country, never owns their home, the government has you as a slave for the rest of your life, and when you die they want 55% of what ever is left, so spend it all before you die

**Herk7769** · 07-25-2015, 01:11 PM

Please do not misunderstand, the replies were concerning financing BECAUSE of the tax deduction; not the need for it.

If you need to finance then shop around for the lowest rate you can get and pay it off as fast as you can. That is just smart money management.

Just don't borrow BECAUSE you can "write off the interest" or (worse yet) borrow because it is "zero interest" (free money).

Money is not EVER free. You are giving up a lower out the door price by rolling the finance charge into the purchase (and you can't even deduct it!).

fx2 · 07-25-2015, 02:13 PM

Quote:

Originally Posted by hammer55

you if can stay out of debt, perfect, but while the kids are young and families these days incomes are going down, and the price of goods are going up, a family will not be able to afford doing much of anything, so if plausible they should do what they can to make memories, like it was said life is too short, and money is a tool, not something to be horded, as long as they plan for retirement also, deductions are a scam, a flat rate tax would be a better option for America, and a person who pays off their mortgage in this country, never owns their home, the government has you as a slave for the rest of your life, and when you die they want 55% of what ever is left, so spend it all before you die

I'm not arguing how reasonable it is to finance a "toy". I agree that the memories are priceless. Even if I couldn't have afforded to pay for mine in full I probably still would have bought it and financed it. The same reason DW drives an Infiniti as her DD and not the Mazda that she would have probably been fine with. I do agree, to a certain extent, that life is short and you do have to enjoy it as long as you plan for the future.

I think we're getting a little off track, sorry OP

dustman_stx · 07-27-2015, 05:11 PM

Quote:

Originally Posted by wanderingbob

Zero down is a sucker bet . You will forever owe a lot more than the trailer is worth , no equity !

Not if you: 1. Know how to get a great deal. 2. Take care of your stuff. 3. Know how to sell. I haven't paid anything down on cars or RV"s for years and I've yet to be upside down, even with financing long term and paying only minimum payments.

The_Rhino · 07-28-2015, 06:51 PM

We saved our money up-front by getting good deals on a used TV & TT and then financed both with ZERO down over a longer period... In 2013 our 2011 Ram 2500 was only $14K so the payment is only $220. In 2014 the 2011 Tracer 3150 was only $20K so the payment is only $180 making the combined payments less than a new truck... During the summer when we are camping, earning less, yet spending money like fools, I don't have to worry about big payments. Then, in the winter we double our triple our payments through extra income through a seasonal small business we own.

IMO I'd rather spend money on our kids while they are with us for the next 8-10 years vs. saving for an uncertain future. I used to provide free counseling to retired folks who were suffering from long-term heath concerns and/or loss of a spouse. I saw too many middle-class folks lose everything to medical bills & adult care facilities only to receive essentially the same services for free after their resources were wiped clean.

elind · 07-31-2015, 08:22 AM

IMO I'd rather spend money on our kids while they are with us for the next 8-10 years vs. saving for an uncertain future. I used to provide free counseling to retired folks who were suffering from long-term heath concerns and/or loss of a spouse. I saw too many middle-class folks lose everything to medical bills & adult care facilities only to receive essentially the same services for free after their resources were wiped clean. IMO the government has not been middle-class friendly for some time & it has only gotten worse... Don't expect your retirement funds, pensions, Social Security to last... However, the government doesn't want the poor out on the street causing trouble so they will always provide something to those that have nothing...[/QUOTE]

X2 The wife and myself were both in EMS services and seen plenty of lives end before their time. We now live for today because we don't know when the fun days will end.

smittyams · 08-19-2015, 03:15 PM

I've always finance the longest term possible to get the lowest payment possible just in case that off chance an emergency pops up and you can only pay that lower payment that month. Other wise, like others have said, pay more per month and pay it off early.

Cajun Style · 08-22-2015, 07:56 AM

About the percentage rates are right now on new units?

Sent from my iPad using Forest River Forums

**dcheatwood** · 08-22-2015, 05:36 PM

To address the financing issue . . . rates can vary depending on amount financed. We sold a TT for $10,000 and planned to put it as down payment on a new 5th wheel. But it brought the balance below the required $25,000 to get the better rate so we put down only $8500 then paid $1500 on the first note against the principal.
Msrp is high on RVs so get everything you can in a discount. Good luck.

RSchleder · 08-22-2015, 06:05 PM

Quote:

Originally Posted by Herk7769

LOL, yea; but THAT will be "deductible" in the year paid regardless, provided you itemize!

Geez, I don't believe I've ever thought that paying out several extra hundred dollars in Taxes so I could get 30% of it back was such a great deal! Guess I'll have to try the "new math"!

The_Rhino · 08-23-2015, 07:33 AM

The essence of what folks are saying is that at least with the RV loan you can write-off the interest as your "2nd home" so you are better-off owing on the RV vs. higher interest auto loans, credit card debt., etc. with interest you cannot write-off... Yes, not owing is better, but most people my age have a mortgage & auto loan...

I used to counsel folks who had just lost their jobs & it can happen to anyone, anytime - especially when the Dow drops 500+ pts, like last Friday... IMO I would rather have $20K in savings with the bank owning the RV in the driveway than have to worry about selling the RV (at a huge loss during a recession) until a new job could be secured...

A couple years ago I made a career change mid-life which meant working less hours & taking grad. classes full-time. I could not have done that if we had all of our savings sitting in the driveway... Everyone's financial picture is different, so the advice that works for one may not be good advice for another...

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