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Old 03-09-2013, 10:12 AM   #29
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Quote:
Originally Posted by topdownman

Must be nice to be rich.
And feeling so good about oneself on a Saturday morning.
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Old 03-09-2013, 10:21 AM   #30
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A 20 yr loan on a 9 year old MH will get you upside down in that mortgage very quickly.

My 18 yr old rig is now worth about 7% of its MSRP without options.

At the 18 yr age point, the target rig would still carry a mortgage that is less than 50% paid down. Far more owed than it would be worth in the market resale.

No collateral there for the lender.
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Old 03-09-2013, 10:54 AM   #31
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Quote:
Originally Posted by topdownman View Post
Must be nice to be rich.
Guess I shouldn't be RV'ing.
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Old 03-09-2013, 11:14 AM   #32
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financing

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Originally Posted by Libero View Post
Wow - did not know so many folks financed discretionary purchases.


Wondered what percentage of RV's on the road have liens on.
Most of them.

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Old 03-09-2013, 11:53 AM   #33
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Rich is a relative term. I don't consider being able to pay $300k cash for an RV as necessarily being rich. I would think many long time home owners have much more than that tied up in thier homes. A net worth of $1million for example does not mean much today and people who are in that circumstance would hardly consider themselves RICH.

I invested in properties starting with $2K down back in the 60's, and then borrowed on properties as they appreciated to buy more properties etc and let someone else pay the freight. I am now in a position of spending our kids inheritance. I saved and paid cash or got a net advantage in borrowing before I bought discretionary items. And feeling good is really good and I encourage people to start sound financial planning as early as they can.

Most people can achieve financial security with good financial planning and spending dicipline. Borrowing for discretionary highly depreciating assets without getting a financial benefit from this is just something I avoid.

Just think if one buys a new $200K RV and finances say 75% of the purchase, with $50k down, the finance charge alone is $6K per year @4% without paying principal. Meanwhile the RV has depreciated about 20-30% as you drive it off the lot. So now $150K is owed on an asset that is worth about $150K, And it continues to get worse unless very high payments are made to attack the Principal.

So with the interest of $6K + the 1st year depreciation of say $40-45K the cost the first year is about $50k or about $4200 per month, plus O&M costs and not even touching payback on the principal.

And just think the RV will continue to depreciate 10-15% per year until it reaches a plateau where depreciation slows or stops and if the asset is kept in pristine condition, it may appreciate again if it gets into an antique category.

In general perhaps a lot of people should not own an RV if basic needs in life (including retirement investments) must be traded off to pay for the RV. But there are sooo many good RV's out there for $30-40K that are within reach of a lot of peoples financial circumstance that will enable one to live within thier means and still enjoy the lifestyle. When I hear of people getting into 15 and 20 year payback plans on a RV I feel for them - well no wonder banks are realizing huge profits as long as people pony up for these schemes.

Anyway, this is my 2cents (or less) worth of commentary and I wish everyone well in what choices they make. I am glad to be in a position where I don't pay interest unless it is to my net advantage.

I speak from a perspective of hindsight from 70++ years. I known may young folks look at things with a different perspective.

So good luck to all - I am enjoying my retirement.
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Old 03-09-2013, 12:55 PM   #34
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Taking a large amount of working money to buy a depreciating asset is silly if you can purchase a used coach at a low price and finance it at a very low rate. Times have changed.
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Old 03-09-2013, 01:15 PM   #35
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Quote:
Originally Posted by conmoto View Post
Taking a large amount of working money to buy a depreciating asset is silly if you can purchase a used coach at a low price and finance it at a very low rate. Times have changed.
XX2 This exactly my thought as well.
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Old 03-09-2013, 09:03 PM   #36
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Originally Posted by conmoto View Post
Taking a large amount of working money to buy a depreciating asset is silly if you can purchase a used coach at a low price and finance it at a very low rate. Times have changed.
X3!
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Old 03-09-2013, 09:26 PM   #37
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Hey Stevie, No didn't try to skunk anyone who did any work already. Same bank was refinancing me and wanted to cut to the chase,before anything was done, and yes save $350 for nothing. Remember we're doing this for saving money not wasting money. I think you can reimburse me the $350 since you think that doesn't matter. I always pass through Milton so give me your address so I can pick it up. Remember a reply I sent you recently that I live very close to you and pass through Milton. Let me know its very easy to pick up the cash.......
Sorry J, I disagree with your reasoning... That's like bringing your own steak to a restaurant and asking them to cook it for you. Regardless of whether or not it was the same bank you had your loan with, the broker did the same amount of work as they would on any other deal. If you went back to the bank directly up front, you would not have had a broker to pay. Once the broker submitted your loan, the bank protected them. That's the way it works. As for the $350, my broker charged me $195 and the title company charged me $200... Well worth it. Cost me more to fill the coach with fuel...
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Old 03-09-2013, 11:15 PM   #38
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Quote:
Originally Posted by Libero View Post
Rich is a relative term. I don't consider being able to pay $300k cash for an RV as necessarily being rich. I would think many long time home owners have much more than that tied up in thier homes. A net worth of $1million for example does not mean much today and people who are in that circumstance would hardly consider themselves RICH.

I invested in properties starting with $2K down back in the 60's, and then borrowed on properties as they appreciated to buy more properties etc and let someone else pay the freight. I am now in a position of spending our kids inheritance. I saved and paid cash or got a net advantage in borrowing before I bought discretionary items. And feeling good is really good and I encourage people to start sound financial planning as early as they can.

Most people can achieve financial security with good financial planning and spending dicipline. Borrowing for discretionary highly depreciating assets without getting a financial benefit from this is just something I avoid.

Just think if one buys a new $200K RV and finances say 75% of the purchase, with $50k down, the finance charge alone is $6K per year @4% without paying principal. Meanwhile the RV has depreciated about 20-30% as you drive it off the lot. So now $150K is owed on an asset that is worth about $150K, And it continues to get worse unless very high payments are made to attack the Principal.

So with the interest of $6K + the 1st year depreciation of say $40-45K the cost the first year is about $50k or about $4200 per month, plus O&M costs and not even touching payback on the principal.

And just think the RV will continue to depreciate 10-15% per year until it reaches a plateau where depreciation slows or stops and if the asset is kept in pristine condition, it may appreciate again if it gets into an antique category.

In general perhaps a lot of people should not own an RV if basic needs in life (including retirement investments) must be traded off to pay for the RV. But there are sooo many good RV's out there for $30-40K that are within reach of a lot of peoples financial circumstance that will enable one to live within thier means and still enjoy the lifestyle. When I hear of people getting into 15 and 20 year payback plans on a RV I feel for them - well no wonder banks are realizing huge profits as long as people pony up for these schemes.

Anyway, this is my 2cents (or less) worth of commentary and I wish everyone well in what choices they make. I am glad to be in a position where I don't pay interest unless it is to my net advantage.

I speak from a perspective of hindsight from 70++ years. I known may young folks look at things with a different perspective.

So good luck to all - I am enjoying my retirement.
Amen. I'm 30 and my generation is in a pile of debt but they have cool toys. My generation is about instant gratification and living for today.

I never financed anything but houses, if I don't have the cash I don't buy it. This is the reason we bought the MH we did. Sure its 13 years old, doesn't have FBP but it's paid for and we have just as much fun in it that we would with a new one.
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Old 03-11-2013, 07:50 AM   #39
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Guess I shouldn't be RV'ing.
My wife's feeling is....... your just renting, as long as you can afford the payment.
Over the years we have faired both well and so not well on the motothomes we have owned.

Me..... Rving is my HOBBY!
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Old 03-11-2013, 08:39 AM   #40
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This RV is our house, we live in it full-time. As for the length of payment the credit union says 6 years but we are paying it off sooner. We purposely did go for a long term loan. We also did not 'borrow' that much either. The low NADA when we bought was around $33k, we were able to get the RV for $27k so about $5k less than low NADA. The only thing the credit union was concerned with was whether the amount was near mid NADA and since we were able to get it for less they let us go for less in years so that we could get the paying over sooner.
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Old 03-11-2013, 09:10 AM   #41
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If I'm making 10-12% on my investments, I have No problem borrowing at 4%....and our autos(truck, ans even a couple of ATV's) have been financed at either 0% or .9%.
I think it's crazy to take 300,000 and buy outright an RV.
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Old 03-11-2013, 10:43 AM   #42
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I knew exactly where this thread was going to go.

First of all, none of us are INVESTING in an RV, ok?

Second, those of you that have dropped working capital on a deprecating asset, good for you. You don't have to come into a thread discussing an issue of financing and try to talk down to others that are doing it differently.

Third, there is nothing wrong "renting" a depreciating asset. I highly doubt anyone here getting a long term loan will have the RV past 5 years or more. Most of us will trade by then. It's about monthly payments. Some will win, some will lose.

Everyone has different needs and wants when it comes to this "hobby".

I was trying to get some ideas on where to go to get the required money. It looks like I might be ok with the dealer after all. We asked the salesman how they get these things sold. It's very difficult. I want a thriving RV industry along with the boating industry. Tough to get there if people can't buy the used products. There's only so many people that can purchase the new stuff.

I know the banks got too loose with money before, but there has to be a middle ground or another way to handle all this.
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