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Old 08-05-2011, 05:21 PM   #15
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We own our real home but we owe for MH. We also take interest deduction. Wanted not to tie up my own money. Cash is hard to earn these days. I have the option to pay off. It also depends on your age also.


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Old 08-05-2011, 05:22 PM   #16
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Essex Credit now does loans to full timers. Need high credit scores low debt to income ratios. They will do up to 20 years.

I can't imagine you will get a better price for a rig paying cash. Cash is same from you or a bank.


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Old 08-05-2011, 05:42 PM   #17
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Old 08-05-2011, 05:48 PM   #18
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Originally Posted by bigdomino View Post
Im interested in your opinions concerning how you finance your mh. We are full timers and our rig is our home. I am in the process of getting a new mh. My old rig was financed. I put enough down so that my trade value will cover the remaining loan. I paid for the time I owned the rig and kept the money I would have used to pay cash in inestments. I deducted the interest on my tax return like a house.

So what do all if you do? D you use the banks money or your own to buy your rig?

We do exactly as you describe. I can't see putting such a large amount of cash into a depreciating asset but it's all about what makes each of us sleep well at night.

Good luck...

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

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Old 08-05-2011, 05:58 PM   #19
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I guess it depends on how much disposable cash you have because you are sure not going to make any money off of it. I'm like others I don't think cash will get a better deal, it's not like they are going to hide it from the IRS. Some things make financial sense to some may not to others, this kind of investment will depend on your portfolio.
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Old 08-05-2011, 06:09 PM   #20
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Cash...my Dad used to say if it was a toy and you couldn't pay cash...you didn't need it.
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Old 08-05-2011, 06:29 PM   #21
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Get the deal on financiering and multiply the monthly payments by the number of months you think you'll own the coach. No write down on paper how much of that you think you'll get back in tax write offs and interest. What is left is money you’re giving away or money you’re getting. Its simple math the deal is in front of you. How much did you save by financing the coach you have?

We paid cash because we intend to keep the coach for a long time. If you are only going to keep the coach a year or two it may be better to finance. But in the long term you will have a tough time getting the interest back.

It just figures the bank is gonna make money on the deal or they won't be in business very long.

We figured our money costs less than the banks.

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Old 08-05-2011, 08:35 PM   #22
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Took a loan from myself and now make payments back to myself. In 4 years I am right back where I started.
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Old 08-05-2011, 08:57 PM   #23
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Originally Posted by Cbones View Post
Took a loan from myself and now make payments back to myself. In 4 years I am right back where I started.
I like that.

I'm not a fan of borrowing money period. Especially for a depreciating asset.

I'd hate the thought of being upside down on it and then having Mr. Murphy visit.
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Old 08-06-2011, 12:48 AM   #24
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Houses, rental properties, etc; finance. RV's, cars, boats & other rapidly depreciating liabilities, CA$H.

When buying a vehicle, I think it's almost always better to always pay cash, (especially when buying from a private party) but sometimes can get a lower price from a dealer when financing because dealers prefer finance customers. They get a percentage commission on the finance deal just like on the vehicle deal. The dealer also gets paid right away from the finance company, so either way, they get the cash. Undoubtedly the best finance deal is zero percent, where you use their money for free.
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Old 08-06-2011, 04:05 AM   #25
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Excellent question by the OP. The answer is it depends!
  1. How much can you make on the money if you invested it?
  2. How much is the interest rate?
  3. How much interest is tax deductable?
  4. What is the actual dollar amount will you save on your taxes?
Then there are some variables.
  1. What tax bracket are you in? If your retired, debt free and take small distributions from your sheltered retirement assets you won't save that much since you in a low tax bracket.
  2. Value of remaining liquid assets if you pay cash.
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Old 08-06-2011, 07:54 AM   #26
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This week all of my investments are depreciating assets. Still, the advice given here seems solid.
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Old 08-06-2011, 08:10 AM   #27
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CASH. considering how high your standard IRS tax deduction is for a married couple only a portion of your interest will save you any tax dollars. I wonder how many retired couples can file long form?
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Old 08-06-2011, 08:13 AM   #28
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Originally Posted by bigdomino View Post
Why do you get a better deal if you pay cash? What difference doses it make if you hand over the cash or a bank does to the dealer?

It go either way. If you are negotiating and they know it is a cash deal, they probablyi figure that if they can only agree on price, this is a done deal (no loan applications, not as easy to change mind/back out, etc). So they may give a small discount to the "sure" cash buyer. Think about selling your own brick and mortar house. Buyer 1 proposes to pay a few thousand less but will pay cash and has no loan contingencies. Buyer 2 offers slightly more but there is a loan contingency and if he can't get a loan at a reasonable rate, he gets his earnest money back. Who would you take? Buyer 1 or Buyer 2?

On the other hand, I have read many times where car dealers, in particular, may have arrangements with lenders and get a commission or kickback from lenders to whom they steer buyers. So, when they calculate their net profit on the deal they also figure what they will get from the bank, as part of it, if you indicate you will be financing. (Sometimes the "bank" may be the franchise's financial institution, like GMAC). So the car dealer sells for a slightly lower price to borrower than the cash buyer (but still makes as much or more). I wouldn't be surprised if something similar occurs with RV dealers (banks give them a broker commission for steering the loan their way).

So if that is going on with a dealer you might actually get a better deal by pretending you will be financing, negotiating the "low" price and after you sign the contract and they want to send you to the guy for financing, tell them you changed your mind and will be paying cash!

But, in either case, we are probably not going to see a significant difference in price for cash buyers.

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