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08-05-2011, 12:26 PM
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#1
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Senior Member
Join Date: Aug 2009
Posts: 499
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pay cash or do a loan for Mh?
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?
Steve
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08-05-2011, 12:33 PM
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#2
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Senior Member
Monaco Owners Club
Join Date: Apr 2009
Location: Granbury, Texas
Posts: 1,394
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I user our own money. No matter what you pay in interest it is not 100% deductible off your income tax. I also don't think most folks can make the same precentage in investments as what the loan percentage will cost.
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08-05-2011, 12:42 PM
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#3
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Senior Member
Join Date: Aug 2009
Posts: 499
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Understand. Loan amount is 4%.
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08-05-2011, 12:48 PM
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#4
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Senior Member
Monaco Owners Club Texas Boomers Club
Join Date: Feb 2008
Location: Denmark and Spain
Posts: 2,030
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I am brought up the old fashioned way.
You look at what you want and distinguish between "nice to have" and "need to have". "Nice to have", you save up money and buy when you have the cash. "Need to have" you borough the money and look closely and the terms of your loan and compare this to your ability to pay it back.
Our motor home is a "nice to have" and we saved up for many years before buying it cash.
__________________
The Great Dane
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08-05-2011, 12:55 PM
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#5
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Administrator in Memoriam
Newmar Owners Club Retired Fire Service RVer's Spartan Chassis
Join Date: May 2000
Location: Newark, DE
Posts: 25,898
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Cash.
__________________
Adios, Dirk - '84 Real Lite Truck Camper, '86 Wilderness Cimarron TT, previously 4 years as a fulltimer in a '07 DSDP
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08-05-2011, 01:09 PM
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#6
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Senior Member
Join Date: Apr 2010
Location: Playa del Carmen, Q.R., Mexico
Posts: 590
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You get a MUCH better deal with a pile of Benjamins.
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08-05-2011, 01:14 PM
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#7
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Senior Member
Join Date: Aug 2006
Posts: 799
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I also vote to pay cash. I started paying cash many years ago for motorhomes, cars and a house. I know over the years I have saved at least a half million dollars by not giving it to banks.
__________________
2005 Dutch Star 4015
Cummins ISL
2007 Honda CR-V
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08-05-2011, 01:32 PM
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#8
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Senior Member
Join Date: Aug 2009
Posts: 499
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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?
Steve__
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08-05-2011, 01:45 PM
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#9
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Senior Member
Monaco Owners Club
Join Date: Aug 2007
Location: Gardnerville, Nevada
Posts: 1,336
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I paid half the cost in cash and financed the rest. My investments even with the hits the last couple of weeks have returned double what my interest rate is on the loan.
__________________
Ken, Chris and Maverick (Golden Retriever)
2009 Beaver Contessa
1984 LS1 CJ7 & 2017 Yamaha YXZ SS SE
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08-05-2011, 01:47 PM
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#10
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Senior Member
Join Date: Jan 2011
Location: Pensacola, FL
Posts: 2,457
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Always depends on the interest rates of the loan vs what I can earn. Right now I have a home equity line of credit that costs 2.9% vs 2.8% for a CD - just about a wash. The MH is my "second home", so I can deduct the interest expense.
So right now I'm using the bank's money. If the loan interest goes up (it's adjustable) I'll pull my savings and pay it off.
__________________
2008 Itasca 37H
2011 & 2012 Len & Pat's "One lap of America"
27K miles & 41 states in 13 months
Yellowstone Lake 6-1-2012
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08-05-2011, 01:54 PM
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#11
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Senior Member
Thor Owners Club Ford Super Duty Owner
Join Date: Aug 2010
Posts: 860
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Quote:
Originally Posted by bigdomino
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?
Steve__
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The seller knows it's a done deal. No credit check no rejection because of credit problem. Cash in hand best thing deal is done, bird in hand thing.
__________________
Mike, Janet & Duchess (cavalier King Charles)
2008 35B windsport, Brazel's rear TracBar, Koni shocks & Safe T plus steering
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08-05-2011, 02:34 PM
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#12
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Senior Member
Join Date: Aug 2006
Posts: 799
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When I have bought motorhomes and cars I take my check book along and lay it on the table and the salesmen's eyes light up. I then tell them how much I'll write the check for, for an out the door price. I never ask how much they will take - I tell them how much I'll give and start writing the check before they can reply.
__________________
2005 Dutch Star 4015
Cummins ISL
2007 Honda CR-V
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08-05-2011, 02:45 PM
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#13
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Senior Member
Join Date: May 2005
Location: Full-timers - Home is where we park it.
Posts: 4,722
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Quote:
Originally Posted by bigdomino
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?
Steve
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You may not have a choice. Few banks will lend to full-timers due to recent changes in lending laws; and if they do, it is usually at a higher rate.
Pay cash if you can. The other advantage is you'll never be upside down.
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08-05-2011, 02:46 PM
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#14
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Senior Member
Winnebago Owners Club
Join Date: Dec 2009
Location: Las Vegas, NV
Posts: 841
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Whether the check is from you or from the finance company...It's all cash to the dealer. Plus the dealer gets a "commission" if you finance.
Now what ?
Kerry
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