Collapse of the RV Life

[historyljc]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">...they are TOYS and expensive ones at that... </div></BLOCKQUOTE>
Dave,
I'll have to disagree on this one. Expensive, yes, toys, no, not in most cases. For many, they enable a particular lifestyle that would not be available without them. To reduce that to a mere "playing with their toys" I believe is a bit off. Some do not want to travel by mass transit systems and be teated like a herd of goats or suspected criminals. Some prefer to use bathrooms that they know the cleanliness of, sleep in beds that they know that the person's who slept in them last night is disease free, enjoy the freedom to go where they want, when they want (weather & other conditions permitting) on their own schedule and have all their own stuff with them without having to load it in and out of suitcases.. Others travel by this mode because they have option of taking their pets (usually some variety of 4 legged furry "children that never grow up) and knowing that they will still enjoy their companionship and that the pets will be well cared for while they, the owners, are on their journey.

A lot of people, including me, have made "investments" in many different financial programs over the years only to see that those "investments" are only worth 45-65% of what they were expecting them to be at this time. Have I taken a hit on the value of my motorhome, you betcha, just like the hit I took on my investments. I can live in my motorhome (it's more comfortable now than the day I bought it) and the payment is still the same. How many people are paying on houses that are worth less than they were 2 years ago. I remember when there were those that screamed when people started financing cars for 48 & 60 months because the norm at that time had been 36 months at most.

If you're looking for an "investment" that will return more dollars down the road than the initial cost, a motorhome is not it. If you're looking for an "investment" that can enrich your life experiences, help you form lifelong national and/or worldwide friendships, allow you to experience some of God's most scenic wonders up close and personal, and let you do it in your own way, a motorhome is great "investment".

That said, I'm going outside and play with my toy.

[milham]

Well put Jim, I can't agree with you more. My Wife and I call our motorhome our "appreciated depreciating investment". Right now I would much rather look at my motorhome than my 401k (201k?).

Ron

[RVJeeper]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">My Wife and I call our motorhome our "appreciated depreciating investment". </div></BLOCKQUOTE>
Great quote... I'll remember to use that one! Our RV is definitely appreciated in spite of the depreciation.

I'm wondering if we would better off thinking of our RVs as a consumable commodity that we use up as we own it. That way when your RV loses 1/3 or 1/2 of its value you can say that you've enjoyed it that amount and gotten your money's worth!

Ron

[mainlander]

As fresh new buyers and relatively young, I'd like to offer some of what we experienced FWIW.

We also had enough cash in an interest bearing simple saving account to buy our 07 Monaco Beaver outright. Our bank (USAA) told us *NO*. We have credit scores around 760. I told them very nicely that other banks would give us the loan (at a rate I would never pay!) and that I felt they should reconsider our loan application. I then told them that if they would not, then I would need to withdraw my 300K and deposit it with B of A in order to get the loan they had offered (sorta true) Then I sent over a personal assets statement (basically showing all our savings various investment accounts, verification #'s etc)

....then we were approved at 5.75% (yay) and I have the cash working at about 3% (nothing to boast about...but hey it offsets the interest on the loan, which is deducted as a home morgtage...)
We feel more secure NOT paying cash and retaining adequate liquidity if the worst happens. (national bank failure, terrorist attack, etc) I also have about five K in small tender gold, which tells you we are a bit paranoid, after losing 40% in the stock market, where we are in a holding position.

My other half is a Marine officer 32 yrs old, we needed the 130K loan approval to be based on our economic strenth and record, not a huge income.

So..my point is, do not accept no, and then sell yourself by providing extensive financial info and HISTORY beyond what they ask for.

Another conclusion I came to from reading these forums, was to buy the highest end RV we could and go back in year to what we could afford, thus minimizing the depreciation, coupled with taking advantage of the current distress *steals* out there (paid 190K for 07 11k miles Contess 07)

We will make double principle payments as we go.

I find the Pay Cash mantra a little old school because interest rates are so LOW now, as long as you can pay early....I'm for keeping the cash somewhere besides an RV.

Of course five front line combat deployments and still alive makes *us* want to do some fun livin NOW. I guess when your best friend is sniped at 30, it changes your perspective a little, you feel the power of now in your life.

For us, the condo on wheels makes makes a lot of sense, as we go from base to base, it will be our home, even though we own a house somewhere else. The real estate market right now, is NOT portable! ...and RENT on the beach of SoCal would be more than our payment and we would never see that money again in any form.

I think the changing economic realties will displace some buyers out of the RV life, and bring an influx of people in, as jumping into real estate looks so uncertain.

Also, consider a signature loan where you secure it with an investment, there are some creative options out there for people with high scores and money in the bank.

Unless I am mistaken, a bank must have a dollar deposited for every 11 they can borrow---you have leverage with them if you have funds there.
Advocate for yourself, IF YOU ARE STRONG Credit Risk (paid off cars and real estate, etc)

Lastly, never accept NO from someone who does not have authority to say YES, lol.

[Dunda]

We have also taken a beating on our investments but until you sell them, you have not lost anything. The losses are only on paper.

We have about three years before we retire, but we are in the process of building a five year CD/bond ladder for our expected yearly expenses, therefore in theory, will not need to touch the investments if the market tanks like it has.

Unfortunately for the folks who do need to sell their investments to meet their expenses, they are the ones who are truly hurting. I pray thing work out for these folks and being selfish hope the market will have recovered come the day we retire and perhaps ease into the full-time life style.

[Rainbow]

Our MH is coming up to 10 years old. Works fine. I keep hearing about what good buys there are out there, but when I look around, Dealers and folks still seem pretty proud of their units. Maybe the dealers as well as the private owners are also upsidedown.