Community Forums

Vegascpl · 12-30-2008, 06:14 AM

Recently we started looking around for another motor home. Prices have fallen dramatically for high end motor homes. Then we hit reality our motor home was upside down in value from what we owe by over $100,000. That came as a shock as we paid down the balance on the loan by over $20,000.00 over the last three years.

Then came the second shock. B of A along with most lenders will not loan to full time RV’rs, and they won’t give you a loan on two RV’s. I’m sure that is because you might tell them to keep your old one and save $100,000! I guess I should say tell you that our credit is solidly in the 800’s and that we have almost enough cash in the bank to purchase the $250,000 motor home. Our problem is that we don’t have the $100,000 needed to sell our present motor home if we do. Obviously the Billions in bail out money we gave the banks is simply not working!

We own two lots in an upscale RV resort. This resort has been running at 15% occupancy. The other day Monaco stock was down to $0.37 per share.

This comes at a time when I’m sure many of you believe that the economy is sound! However, faced with hard reality the real question is will our RV lifestyle survive?

Michael
2005 Dutch Star 40' 4 slide
2005 BMW K1200LT motorcycle on lift
2006 Ford Escape Hybrid

Vegascpl · 12-30-2008, 06:14 AM

Recently we started looking around for another motor home. Prices have fallen dramatically for high end motor homes. Then we hit reality our motor home was upside down in value from what we owe by over $100,000. That came as a shock as we paid down the balance on the loan by over $20,000.00 over the last three years.

Then came the second shock. B of A along with most lenders will not loan to full time RV’rs, and they won’t give you a loan on two RV’s. I’m sure that is because you might tell them to keep your old one and save $100,000! I guess I should say tell you that our credit is solidly in the 800’s and that we have almost enough cash in the bank to purchase the $250,000 motor home. Our problem is that we don’t have the $100,000 needed to sell our present motor home if we do. Obviously the Billions in bail out money we gave the banks is simply not working!

We own two lots in an upscale RV resort. This resort has been running at 15% occupancy. The other day Monaco stock was down to $0.37 per share.

This comes at a time when I’m sure many of you believe that the economy is sound! However, faced with hard reality the real question is will our RV lifestyle survive?

Michael
2005 Dutch Star 40' 4 slide
2005 BMW K1200LT motorcycle on lift
2006 Ford Escape Hybrid

RustyJC · 12-30-2008, 06:21 AM

Michael,

I guess it's a matter of perspective. If one were wanting to get into "the RV lifestyle" right now, I don't know that there's ever been a better buyer's market for trucks, 5th wheels, motorhomes, etc. if one has the cash on hand to make the investment.

Rusty

Bob O · 12-30-2008, 07:26 AM

Michael,
Your coach along with everybody elses have drastically lost value due to the fact most of the Dealers are selling the new ones up to 45% of MSRP from what I have seen. That has had an effect on all the used ones out there. Why would somebody want to buy a used one when you can have a brand new one probably cheaper.
BOA owns mine and they probably wouldn't do it again for us right now even though I have great credit too. The banks are all scared right now. I don't know where all the bailout money went to other than they are holding on to it?
The recession has hit us hard in south Florida. My business is down 25% since last year. We will survive this and the RV lifestyle will recoup as for most of us that RV,we love the lifestyle. I wish I was a full timer (I'm jealeous), but due to my 401K losses it will be quite some time before my wife and I realize our dream of extended travel on the road. Happy travel to you,it will get better.

Bob O

Route 66 · 12-30-2008, 07:28 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">will our RV lifestyle survive? </div></BLOCKQUOTE>

I have no doubts it will survive.

We went through a similar situation in the 70's when countless RV manufacturers folded, but the RV lifestyle survived.

The RV scene is and will be different, but it will survive.

doc · 12-30-2008, 08:08 AM

You know what? I had a pretty good life before I knew what a motorhome was. We will survive. I cannot imagine trying to finance something like a luxury coach with the economy like it is today. We were able to pay cash for the last coach and probably would not have bought it if we had seen the where the economy was headed.
People with money (IMHO) are sitting on it right now, waiting to see where we are headed. The market keeps jumping around like an excited flea. When it begins to show some stability, then I believe you will see some investments and buying taking place.
We did not get into this situation over night and we will not get out over night.

Alan_Hepburn · 12-30-2008, 11:30 AM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Vegascpl:
Recently we started looking around for another motor home....

...I guess I should say tell you that our credit is solidly in the 800’s and that we have almost enough cash in the bank to purchase the $250,000 motor home. Our problem is that we don’t have the $100,000 needed to sell our present motor home if we do. Obviously the Billions in bail out money we gave the banks is simply not working!

We own two lots in an upscale RV resort. </div></BLOCKQUOTE>

Let's see - you can afford to pay cash for a $250K motorhome, your credit rating is in the 800's, and you own two lots in an upscale resort - I don't think the bail out money was meant for people in your position.

chasfm11 · 12-30-2008, 02:59 PM

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> I don't think the bail out money was meant for people in your position. </div></BLOCKQUOTE>

No, Allen, I agree with you - it wasn't meant for any of us. What is was meant for was to pay the ex-CEO of Merrell Lynch $25M for about 3 months work so that he could go and by a $37M apartment in NYC. When BofA bought out ML, there was supposed to be controls in place that prevented exceptional executive compensation. They obviously didn't work.

We will continue to enjoy our version of the RV lifestyle as long as we can. The limiting factor for us will be the longevity of my job. The economic crisis has made retiring right now and trying to work off the 401K a pretty unattractive option.

historyljc · 12-30-2008, 03:16 PM

If the price of diesel stays reasonable, this next spring/summer/fall will be an ideal time for DW & I to take that long trip we've been planning. Would be helpful if the price on some of these expensive would drop a bit also.

dieselclacker · 12-30-2008, 03:36 PM

You know, I wonder why anyone who is upside down by a 100 thousand dollars in thier present coach would even be looking at another coach that costs 250 thousand. Isn't this a large part of why the finiancial bailout was given to our financial institutions? I hope the B of A has learned something from recent past history.

Dieselclacker

buckeyes · 12-30-2008, 04:21 PM

Here is a simple solution to alot of problems. Enjoy and appreciate what you have, and can afford. I think that if more people would buy what they can pay for with cash, and less credit, they would be very happy.
Personally, if I was ever 100K upside down on anything, it would be time to re-evaluate my decision making process.
Easy credit is what got this economy into this mess, and we will not "borrow and spend" our way out of it.
I have a hard time blaming the banks for my errors in spending.
The motorhome in the driveway may not "keep up with the Jones", but it serves me well, and it is paid for. Let the "Jones" spend their time worrying, I won't.

Fred and Bonnie · 12-30-2008, 05:52 PM

The "RV Lifestyle" will survive; after all we are the "Decedents" of the "Tin Can Tourists" from the 1920's.

The "Mode of Travel" will surely take a drastic turn in the upcoming years, however the "Lifestyle" will survive.

Fred

motojavaphil · 12-30-2008, 07:21 PM

I am sitting in South Texas and everywhere I look are RV's of all sorts. Money has gone South, the entire Country is upside down including RVers. We are no different than mainstream America. I am convinced we will survive. Aside from that it would be lonely having to camp alone.
Phil

read & learn · 12-31-2008, 05:08 AM

Just wondering how the up-scale rv parks are doing. If they are feeling the pinch like the small mom & pop campgrounds are or are they full.
If they are starting to hurt will they change their policy on age of RV or let none Motor Homes into their parks.
Oh my goodness someone in a pop-up is camping next to us.