15 year financing, biting too big, chewing too slow?

[jimmyjnr]

Do what you feel is best for you and DW , stop worrying about leaving cash for kids etc .
I told my parents to refinance house and enjoy it

[deSanford]

All has been said I have nothing more to add............no pockets in those boxes. deSanford

[bluegrassrv]

Originally Posted by plasma800

Finance the thing and ENJOY YOUR LIFE. It's worth it for the experience, don't let the nay sayers bog ya down. You're not going to take the money with you when you die anyway.

Also, consider this,,,, OP, you said what if you want to sell it in 5 years... but what if you DON'T want to sell it in 5 years.

I know for a fact my coach has another 10 to 15 years in it, and I can drive it til the wheels fall off it.

I like the sound of this advice as there is a good chance I'd keep the coach well beyond five years. The DW suggested we buy another TT. Not what I wanted to hear. Looks like we'll keep discussing and looking until we agree on our next RV.

[plasma800]

Originally Posted by bluegrassrv

I like the sound of this advice as there is a good chance I'd keep the coach well beyond five years. The DW suggested we buy another TT. Not what I wanted to hear. Looks like we'll keep discussing and looking until we agree on our next RV.

Get the country coach - also, you can probably negotiate a little better price.

What I would want to know more than anything is IF you get the country coach, how much do you need to put into it AFTER you get it.

When I bought mine, I knew it needed some work. So far I'm at about 6k worth of "fixer up" stuff. And I know for a fact I have at least another 10k to go to get her totally back up to spec. So make sure you have a "problem solving" budget.

Have you tried to acquire any financing yet? The talk of 2.3% interest just isn't realistic, but if you could snag the 4.x you mentioned before, you better jump all over that rate! Cause that's not the norm on a used coach that old.

It's really a LOT OF fun to drive one of these things, it's amazing really - I just want you to know what you're getting yourself into.

Every three days of full driving is $700 bucks in fuel. And the machine needs a lot of maint. constantly, plus it likes to be driven. If you are doing a bunch of sitting, maybe a tt or a 5th is better.

In our case, we drive A LOT. We move around constantly, we have never been in one place for more than 3 to 4 days. What I mean by sitting is when you park in one spot for 4 months, although they can handle it.

If the coach is everything you want, layout, and everything works properly, yeah, there's a great chance you would own this thing for a long time. There's nothing all that amazing in the new coachs - trust me, I've looked like crazy and have just decided there's nothing there worth the extra HUNDREDS of thousands of dollars... If my captains chair is a little worn out.. I can get a brand spanking new one for under 2000 dollars - same goes for everything else in the coach.

Your biggest fear is water leaks and engine / transmission problems. And this will all boil down to how the coach was maintained before you.

You might want to take a look at the 05 06 07 Fleetwood Revolutions (at some point the switched the name to American Coach) These are some of the best, most sturdy coaches ever made. Also they have a great power plant, and a great layout! Very well done. But from what I understand, country coaches are great machines too.

[plasma800]

Just looked up a few, and that's a nice looking coach!!

[bluegrassrv]

The coach I was looking at when I made the original post would have needed nothing but upgraded tv's. The dealer was going to handle tires and a few issues I found. As a matter of fact, the dealer said they were going to fix those things anyway, weather or not I buy the coach. It was a two slide but I really want three. I'm glad I held off on that one, I think. I found a three slide in CA. That's when the DW brought up another TT. So I'm on pause for now, but still looking.

[sstehman]

Have decided on a 15 year package at 5.85% through my dealer. 10% down. Was the best I could find and checked all around. The unit is a 2002, 40' diesel with 2 slide outs and some optional features. Was very well maintained and it is our first purchase so we wanted to be conservative first time round. Figure if I make double payments and we want to continue on the motorhome routine at retirement (soon), we can trade up then.

Now if I can just get the warranty details straightened out -- getting a lot of advice on another forum thread. (What a racket.)

[Mike_Harriet]

We just started our RV life in a 2003 DutchStar. In 2004 we "retired/quit" the rat race, sold it all, bought a older 1986 Tiawanese trawler which we spent the last 10 yrs turning into a showpiece for its age. Old/dear friends called us crazy to retire so early. Now they call us the smartest people they know. After struggling thru recession, job losses, stress, retirement savings decimation, home value loss they are exhausted. Buy the coach you want, make a good budget and stick to it and go!!! I too lost some good friends before they could live their dreams. A quote from a cruising friend "don't dream your life, live your dream for it's later than you think".

[plasma800]

You'll know what to do when the time is right.
The kind of advice / justification you might seek here could potentially make your decision harder, as advice here is all over the board. It's like asking them if you should pee standing up or sitting down....

[Coma]

To speak to the cost of money, as mentioned earlier, it is at historic lows. Stock market average is 8% and recently much higher. Why use my cash when I can get >10% and borrow for 5%? Debt has its place just like equity.

FWIW I pulled a TT for nearly 20 years, my biggest mistake was not getting a motor home sooner. My wife and I are still kicking ourselves for the lost opportunities.

[Lincolnboy2]

Originally Posted by Scarsdale

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Hmmmm, where do I begin? This is one of the more mean-spirited posts I've seen on this forum. The comment about how this guy "worked with his hands and not his head" made me laugh out loud. Nothing wrong with working with your hands....but it's certainly no more noble than working with your head. I did both during my 35 year career.

The poster is correct about one thing....an RV is not a good investment. Either is a boat, or a luxury car. Heck, neither is ice cream or a nice tri-tip.

I just bought my first motor home. It's a new Georgetown 328, and I financed it for 20 years. I have more than enough money to pay cash for this motor home. I got advice from my tax accountant about this. I just retired, and I have to watch the amount of income that I declare each year in order to stay in a good tax bracket. Taking enough money out of my IRA accounts to pay cash would have put me into the 35% tax bracket, and that hits ALL of my income. My plan is to take out some money each year to pay down the principle on this loan, but not take out enough to bump me into the higher tax bracket. I think it's a good plan.

Yes, I know that I'll lose money on this deal, and I know that using a loan to purchase a depreciating asset like this doesn't make sense if you just look at the numbers on paper.

Guess what? I DON'T CARE. Why?

We are all human, and we all die. The luckiest of us will get 20-30 years of retirement. Then we are gone. I have friends who have died before they got to retirement, or shortly after they retired. Do you think these folks care about their investments today? I think they would regret missing some of the best experiences that life has to offer much more than the having a smaller bank account at the end.

I grew up camping, and now that it's play time for me, I want to get out and see this great country of ours. I want to do this while I'm still strong enough and healthy enough to enjoy it. Fifteen years from now, I might not be alive. I might not be able to drive anymore. I might be ill. My DW might be gone, leaving me without my cherished traveling partner. So rather than save up my money to pay cash, I financed. Gladly.

If the economy doesn't completely crater and DW or I don't have any huge expensive illnesses before the end, our heirs will end up with a lot of money to divide among themselves when we are gone. Did this purchase cut into that? A little, I guess, but it's in the noise.

My advice to people is to get out and enjoy your life while you can. You may be alive a shorter period of time than you think. That should be weighed along with the financial details when you decide the best course for yourself. Don't let anybody tell you that you are stupid for taking your happiness into consideration.

AMEN Scarsdale!! AMEN!

[RickO]

Originally Posted by StevenNSteph

There is a simple investment axiom. Never pay interest for depreciating assets. You only take loans when there is a reasonable chance of appreciation during your ownership of it.

Funny thing about "simple axioms".... the one I've chosen to follow is to never put cash into depreciating assets.

To each their own. One size does not fit all in spite of what some would like to believe.

Rick

[jerryhawkins]

Scarsdale I completely agree yesterday is history I'm 71 and we are seeing the USA while still healthy. My motorhome is seven years old and runs like new I'm very thankful its paid for but everyone's schedule may not be the same the sooner you can travel more the better your quality of life will be.!!!! Happy Trails..

[Superslif]

Agreed, retire while your still walking upright. I too, have seen many co-workers pass, or work till their bodies are in dis-repair. Hope to go at age 53 / 54.

You worked hard all your life, enjoy the fruits of all that hard work.