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Old 08-05-2011, 01:26 PM   #1
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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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Old 08-05-2011, 01:33 PM   #2
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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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Old 08-05-2011, 01:42 PM   #3
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Understand. Loan amount is 4%.
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Old 08-05-2011, 01:48 PM   #4
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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.
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Old 08-05-2011, 01:55 PM   #5
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Cash.
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Old 08-05-2011, 02:09 PM   #6
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You get a MUCH better deal with a pile of Benjamins.
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Old 08-05-2011, 02:14 PM   #7
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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.
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Old 08-05-2011, 02:32 PM   #8
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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?

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Old 08-05-2011, 02:45 PM   #9
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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.
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Old 08-05-2011, 02:47 PM   #10
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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.
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Old 08-05-2011, 02:54 PM   #11
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Quote:
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?

Steve__
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.
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Old 08-05-2011, 03:34 PM   #12
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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.
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Old 08-05-2011, 03:45 PM   #13
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Quote:
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?

Steve
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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Old 08-05-2011, 03:46 PM   #14
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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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