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Old 03-24-2011, 09:09 PM   #99
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There's no reason to take a bath on a new RV when there are soooo many good used ones on the market. Much easier on the wallet and gives you a chance to pay cash or pay it off REAL fast. My toys are used and paid for, Nooo Payments.
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Old 03-24-2011, 11:33 PM   #100
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We took the debt. We could of waited five more years and saved up for it and been clear. Then our oldest girls would be 10 not 5. We figure a RV is a money pit, it just consumes and at the end of its life is essentially worthless, except for the time spent in it. So for us, 5 years of memories was worth the stupid tax. I am no debt advocate, it is dumb, especially on things that loose money, and doubly especially on not necessary things that loose money. I guess I am a hypocrite. Cars all paid cash... RV borrowed to the hilt!d
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Old 03-24-2011, 11:43 PM   #101
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We have a '98 Class A that is free and clear...no other debts and that's the way I wanna' keep it
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Old 03-25-2011, 11:14 AM   #102
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MH Title in Hand or Financing?

We're both retired (he's 77 and I'm 61) with two sons still at home (18 and 20). We bought our 2000 Fleetwood Pace Arrow Vision in Sept 2010 and paid cash (also refi'd our house with a lower interest rate). Also paid cash for our tow-behind ('97 Suzuki Sidekick), and our 3 other cars are also paid for.
It's a good feeling to know that you have ample savings and monthly income to gas up the RV, pay for repairs, and just gooooo. If we didn't pay cash, we wouldn't have bought it as it would have drained us, albeit slowlly to maintain it and travel the way we want to.
Traveling from Oregon to So Cal. next month, and hoping for a summer trip to Alaska. In between, there's always the Oregon coast!
We love our comfy and beautiful home-away-from home on wheels. Much cheaper, quieter, cleaner, and roomy than a motel room, too.
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Old 03-26-2011, 06:52 PM   #103
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Old 03-26-2011, 07:07 PM   #104
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Old 03-26-2011, 07:41 PM   #105
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I'm curious. Have any of you who are dead set against financing vs. paying out cash done any type of cost analysis or are you just going on emotion and gut feeling?

In our situation, we could have easily paid the $100,000.00 we financed on our $165,000.00 coach out of our savings. When we crunched the numbers, it would have actually cost us more over the life of the loan by loosing that interest earning principle. If some unforeseen financial emergency should come along, we are also better off not having all that cash tied up in a depreciating asset. The loan is also NOT a home equity loan for the same reasons. If things should go south, all we could loose was the RV, not our home and we still have our savings.

There are many factors involved in such a large purchase. I suggest to all to consult your financial advisor before laying out cash for an expensive depreciating asset such as an RV or boat.
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Old 03-26-2011, 07:50 PM   #106
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Originally Posted by offthewall View Post
If things should go south, all we could loose was the RV, not our home and we still have our savings.
If all goes south, you won't need to worry about what's in your savings.
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Old 03-26-2011, 07:56 PM   #107
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I'm not worried about going South. All my income seems like it's going East to DC.
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Old 03-26-2011, 08:38 PM   #108
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Originally Posted by offthewall View Post

I'm curious. Have any of you who are dead set against financing vs. paying out cash done any type of cost analysis or are you just going on emotion and gut feeling?

In our situation, we could have easily paid the $100,000.00 we financed on our $165,000.00 coach out of our savings. When we crunched the numbers, it would have actually cost us more over the life of the loan by loosing that interest earning principle. If some unforeseen financial emergency should come along, we are also better off not having all that cash tied up in a depreciating asset. The loan is also NOT a home equity loan for the same reasons. If things should go south, all we could loose was the RV, not our home and we still have our savings.

There are many factors involved in such a large purchase. I suggest to all to consult your financial adviser before laying out cash for an expensive depreciating asset such as an RV or boat.
I totally agree with you. I would rather collect the current 18-25 percent return on my tax deferred Fidelity Select investments versus having to remove it, then pay income tax on that money and then pay off the loan. I would also lose the tax benefit of deducting the interest on the RV loan on my income tax form.

I cannot believe how many people really think that sinking their money into a depreciating asset is advantageous.

After reading of so many people paying cash for their RV's it appears to me that they are all making decisions NOT based on any financial advantage but from an emotional standpoint.

I treat the RV loan as my mortgage as it is my home. I don't have any real estate but I will as soon as I can find a state I would want to settle down at.

Like you, if things were to change, all they can take away from me is my Home on wheels, I won't be losing my entire retirement account due to paying cash for a losing asset.

Dr4Film ----- Richard.
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Old 03-26-2011, 09:15 PM   #109
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I totally agree with you. I would rather collect the current 18-25 percent return on my tax deferred Fidelity Select investments versus having to remove it, then pay income tax on that money and then pay off the loan. I would also lose the tax benefit of deducting the interest on the RV loan on my income tax form.

I cannot believe how many people really think that sinking their money into a depreciating asset is advantageous.

After reading of so many people paying cash for their RV's it appears to me that they are all making decisions NOT based on any financial advantage but from an emotional standpoint.

I treat the RV loan as my mortgage as it is my home. I don't have any real estate but I will as soon as I can find a state I would want to settle down at.

Like you, if things were to change, all they can take away from me is my Home on wheels, I won't be losing my entire retirement account due to paying cash for a losing asset.

Dr4Film ----- Richard.
18 to 25% return from Fidelity??????You must not be in the same Fidelity that I've been using for the past23 years!!!!!!!
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Old 03-26-2011, 09:17 PM   #110
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Quote:
Originally Posted by offthewall View Post
I'm curious. Have any of you who are dead set against financing vs. paying out cash done any type of cost analysis or are you just going on emotion and gut feeling?

In our situation, we could have easily paid the $100,000.00 we financed on our $165,000.00 coach out of our savings. When we crunched the numbers, it would have actually cost us more over the life of the loan by loosing that interest earning principle. If some unforeseen financial emergency should come along, we are also better off not having all that cash tied up in a depreciating asset. The loan is also NOT a home equity loan for the same reasons. If things should go south, all we could loose was the RV, not our home and we still have our savings.

There are many factors involved in such a large purchase. I suggest to all to consult your financial advisor before laying out cash for an expensive depreciating asset such as an RV or boat.
I am 45 home cars all paid for just payment on the coach and on 12 year loan and 11 years left and my payment is less than most cars out there and if things go south all i loose is the coach why tie up all my money in it just enjoy it use it and dont look back
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Old 03-26-2011, 09:21 PM   #111
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While we financed all our RV's, we made extra payments & paid off each one we owned ahead of schedule to cut down on total interest money the banks got from us -plus we prefer being in debt for as short a period as possible. We made sure the monthly payments were what we could continue to pay even if both of us were out of work (which did happen for about 3 months one year) & that also allowed us to make additional payments when employed status resumed. However, while we did have the loans, we did take advantage of being able to deduct off our taxes the interest we did pay. For us, financing was the best scenario.

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Old 03-27-2011, 06:27 AM   #112
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18 to 25% return from Fidelity??????

You must not be in the same Fidelity that I've been using for the past23 years!!!!!!!
I have been in and out of several types of Fidelity offered investments over the years. Once the market went south and then totally bottomed in March of '09, exactly the very same time when I had gotten out of the market into cash, I took one month to study the Fidelity Select choices and bought back into 6-7 different Fidelity Select sectors. Since that time, I have made about $275K on a $360K cash investment. They are very aggressive investments with a lot of risk, not what I would call good choices for everyone but they have performed for me.

Someday, I plan to transfer them into something more stable and secure but for now I am comfortable with what I have.

As always, I suggest that people should talk to their Fidelity adviser to find out what the best approach for their personal situation is so that they are comfortable and can sleep better at night.

Back to the topic of this thread, I have a 5.62% RV 20 year loan from my credit union of which I've paid off over 7 years now. YES, I am upside down but It's my HOME mortgage and I've lived in the coach since purchasing it. I don't plan to buy another one because I did all my research ahead of time to choose a good one.

There is NO WAY I would take tax deferred money out of any high interest bearing account to pay off a 5.62% loan. That is just not a smart financial choice.


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