Go Back   iRV2 Forums > MOTORHOME FORUMS > Class A Motorhome Discussions
Click Here to Login
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Reply
  This discussion is proudly sponsored by:
Please support our sponsors and let them know you heard about their products on iRV2
 
Thread Tools Search this Thread Display Modes
 
Old 07-20-2014, 11:33 AM   #71
Senior Member
 
ChallengerRN's Avatar
 
Join Date: Dec 2012
Posts: 2,079
So things go wrong--economy--sickness - anything. Not who pays for it if you owe 1/4 more than it worth ?!! Sounds like DC to me ??
__________________

__________________
ChallengerRN is offline   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free!

iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more!

Old 07-20-2014, 12:21 PM   #72
Senior Member
 
CJBROWN's Avatar
 
Workhorse Chassis Owner
Join Date: Jul 2006
Location: Orange County CA
Posts: 936
What is 'DC' ?
__________________

__________________
Chris & Sherry Brown - 2014 Anza Borrego Weekend Trip Report
2005 Itasca Sunrise 31W - W20 and 8.1
2015 Chevy Colorado 4X4 Toad
CJBROWN is offline   Reply With Quote
Old 07-20-2014, 12:28 PM   #73
Senior Member
 
Francesca's Avatar
 
Vintage RV Owners Club
Join Date: May 2011
Location: Port Hadlock, Washington
Posts: 2,855
Quote:
Originally Posted by CJBROWN View Post
What is 'DC' ?
"The Gummint", as sits in DC ?
__________________
Francesca is offline   Reply With Quote
Old 07-20-2014, 12:40 PM   #74
Senior Member
 
ChallengerRN's Avatar
 
Join Date: Dec 2012
Posts: 2,079
DC. As in Washington
__________________
ChallengerRN is offline   Reply With Quote
Old 07-20-2014, 12:51 PM   #75
Moderator Emeritus
 
RickO's Avatar


 
Join Date: Jan 2007
Location: Litchfield Park, Arizona
Posts: 10,530
Quote:
Originally Posted by CJBROWN View Post
You, as it seems a few here, seem to miss the point. It's not about 'borrowing your way out of debt', it's about paying your debt off on something you want to own. If you're making a payment anyway, why not make it on something you want instead of something you're stuck with? You either make a bigger payment on the current one, or a bigger payment on the new one.

At least everyone agrees you have to pay off the depreciation either way. If I understand correctly, many don't like the idea of rolling depreciation or negative equity into the next one and that is sound logic. But if you have the cash flow and you want to do it why not? At the end of the payment term it all gets paid anyway.

The term 'hiding' or 'covering' the negative equity is simply way to push the debt forward. It's not about doing away with it. I don't think anyone is advocating not paying for it. I also think people anticipate a change in their financial situation so it makes more sense for them. If you have retiring debt or increasing income or cash flow, it can make sense for some to do this and get what they want now.

It's like when you hold stock and it goes up or down, the gain or loss is called a 'paper' gain or loss. It's only an actual gain or loss if you sell. I hear of people all excited or all depressed depending on the advance or decline of their investments. What difference does it make until you are ready to cash out?

Depreciation is a loss of value due to market value - which is variable. The amount of said depreciation is only set when a transaction takes place.

I think the other thing a fiscal conservative is concerned with is financing a depreciating asset. You lose value as you make the payment - it's like throwing money away. I don't think anyone is confused about that either. It's a lifestyle choice. If you earn the money you get to do with it what you wish. I don't think it's reasonable for someone else to come along and say you shouldn't do that. If you want to buy a lifestyle choice, well that IS your choice.

How many times have you heard that it doesn't make sense to own an RV at all? Why not just rent one when you want to use it? Of course it depends on your level of involvement, commitment - it's a lifestyle choice.
Very well said. I could not agree more... although those who are just a bit less fiscally conservative might argue against putting cash into a depreciating asset as well. Again this comes down to the individuals freedom to make their own decision based upon their own personal circumstances and preferences.

Rick
__________________
Rick, Nancy, Peanut & Lola our Westie Dogs & Bailey the Sheltie.

2007 Itasca Ellipse 40FD
RickO is offline   Reply With Quote
Old 07-20-2014, 01:15 PM   #76
Senior Member
 
JFXG's Avatar
 
Newmar Owners Club
Freightliner Owners Club
Join Date: May 2012
Location: Today? Mercer, PA
Posts: 3,620
>>Anyone ever been in an upside down situation and got out of it?<<

Only in an airplane!
__________________
John & Diane, Fulltimers. RVM103 NHSO
On the road since June '12 with Lincoln, the guard cat.
2002 Dutch Star 40, Freightliner, Cat 3126, 2004 Element
JFXG is offline   Reply With Quote
Old 07-20-2014, 02:36 PM   #77
Senior Member
 
Lincolnut's Avatar
 
Join Date: Mar 2013
Location: Artesia NM
Posts: 132
Quote:
Originally Posted by JFXG View Post
>>Anyone ever been in an upside down situation and got out of it?<<

Only in an airplane!
As JFXG said the OP wants "OUT OF IT.....Not without paying "IT" off

Life style or not.........

Mike
__________________
Lincolnut is offline   Reply With Quote
Old 07-20-2014, 04:34 PM   #78
Senior Member
 
glarnold's Avatar
 
Join Date: Feb 2007
Location: Bellevue, Nebraska
Posts: 436
To answer the OP's question -has anyone done it? Yes, we did. It was after another year of making fairly large payments, with equity not keeping up with depreciation. We finally bit the bullet, advertised it at a much lower price (low enough to generate some interest, no pun intended), added several thousand dollars to the buyer's cash to pay it off. Gave the buyer a great deal and got out of the large payments.

Now, where can I find that next great deal...?
__________________
2004 Damon Daybreak
Former Full-Timers
glarnold is offline   Reply With Quote
Old 07-20-2014, 08:08 PM   #79
Senior Member
 
flynnwalter's Avatar
 
Join Date: Nov 2010
Location: Lake City, Florida
Posts: 450
glarnold
Good for you! That is something to be very proud about.
__________________
Frank W. '09 Cayman 38 SBD '08 CRV
Lake City, Florida
flynnwalter is offline   Reply With Quote
Old 07-20-2014, 09:22 PM   #80
Senior Member
 
Ford Super Duty Owner
Join Date: Jan 2011
Location: Kitts Hill, OH
Posts: 1,863
up side down and you want a bigger RV? seems to me there are 4 absolute ways this can go.
First you need to ask your self if you can make the current payments.

Here are the 4 options I see
1 You keep making the payments like your contract says you will. keep it and pay it off.
2 You put it up for sale and when/if you have a buyer you keep paying the bank till done.
3 You don't keep making the payment and let bank Repo it back. (BIG ding on credit)
4 You drive it to bank and walk in the keys and walk away. (Ding almost as bad as #3)
__________________
(RVM#26) THE U-RV 94 F-700/24 foot U-haul box home built RV
Mekanic is offline   Reply With Quote
Old 07-20-2014, 09:42 PM   #81
Senior Member
 
Ford Super Duty Owner
Join Date: Jan 2011
Location: Kitts Hill, OH
Posts: 1,863
Quote:
Originally Posted by glarnold View Post
To answer the OP's question -has anyone done it? Yes, we did. It was after another year of making fairly large payments, with equity not keeping up with depreciation. We finally bit the bullet, advertised it at a much lower price (low enough to generate some interest, no pun intended), added several thousand dollars to the buyer's cash to pay it off. Gave the buyer a great deal and got out of the large payments.

Now, where can I find that next great deal...?
Make you own deal, look at building a conversions if you have the spare time.
You can Every option you want, and none you don't if that is what you want.
__________________
(RVM#26) THE U-RV 94 F-700/24 foot U-haul box home built RV
Mekanic is offline   Reply With Quote
Old 07-21-2014, 01:18 AM   #82
Senior Member
 
mojoracing's Avatar


 
Fleetwood Owners Club
Ford Super Duty Owner
Join Date: Oct 2013
Location: northern IL
Posts: 2,557
The OP is not looking to just bail out on the unit or loan. They want to purchase another one. The problem is they have negative equity in their current unit. Its simply a matter of finding out how much moneythe bank that will do the loan will lend on said unit. Some banks will only finance 90% of the invoice price of the unit, other will finance 130% or more. Find one that will loan the most and then back into the equation. Don't just rely on the dealer either. Some are very good at obtaining loans that are a little tougher to put together, others have no clue. Visit with the finance manager at a couple dealers. Sit down with them first before you talk to a salesperson. Explain your situation and ask them what banks they have that have the highest parameters for loan to value (ltv). Heres a little example. If the unit you are looking at has an msrp of 130000.00 and an invoice of 100000.00 and the bank will loan 130% of invoice, you can bower 130000.00 on the new unit. If the purchase price ends up being 105000.00, you can roll 25000.00 negative equity into the new loan. (for simplicity I'm not including taxes and fees but that does have to be considered). Now if your trade can be sold or traded for 75000.00 and the payoff is 100000.00, you can roll it into the new loan and enjoy your new coach. If the negative equity is greater your going to have to either sell your existing unit for more or knock down that principal somehow. I would first get pre approved or at least have a good idea of how much LTV you can get approved for. Once you have an idea of that you can move forward and be in a much better position to negotiate with the dealer and or figure out the rest of the equation.
__________________
2014 Fleetwood Bounder 35k
mojoracing is offline   Reply With Quote
Old 07-21-2014, 09:36 AM   #83
Senior Member
 
CJBROWN's Avatar
 
Workhorse Chassis Owner
Join Date: Jul 2006
Location: Orange County CA
Posts: 936
^^This +

Simple really, isn't it?

Some here think this is really a bad idea.
And someone said the government will end up paying if you do this and something goes wrong. I say that's a poor reason not to. I don't go around making decisions based on what could go wrong. I guess it's a glass half-empty or half-full approach.
__________________
Chris & Sherry Brown - 2014 Anza Borrego Weekend Trip Report
2005 Itasca Sunrise 31W - W20 and 8.1
2015 Chevy Colorado 4X4 Toad
CJBROWN is offline   Reply With Quote
Old 07-21-2014, 08:06 PM   #84
Senior Member
 
Maladjusted's Avatar
 
Join Date: May 2013
Posts: 292
Sometimes paying cash is not the most fiscally advantagous for large purchases... Ie House, Or RV.

Case in point... We have enough liquid savings to pay for our rig outright. That cash is currently in a mutual fund portfolio that turned 16% last year is is at 7% this year so far.

We borrowed 75% of the value at 3.24%. Keeping our cash in the mutual funds, even at a modest 7% return still nets us 3.76%.
__________________

__________________
-------------------------
2013 Coachmen SportsCoach 385DS
2010 HD CVO StreetGlide
Maladjusted is offline   Reply With Quote
Reply



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Virginia Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 10:06 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.