Community Forums

ArmyEOD · 02-06-2012, 10:10 AM

FinHawk, I am guessing from your OP that you can afford the payments, go for it. Yes I pay over 1500.00 and that was our choice. We use our rig alot and enjoy the modern comforts that it has afforded us. With that said, just be sure you are going to use it and take care of it. We only go around once in this life, so dance while the music is playing. I have always said that I came into this world naked and looks like I will leave in a suit, so that puts me ahead.

puttin · 02-06-2012, 10:21 AM

Finhawk,

What you're soliciting an opinion for is really subjective, so you'll get alot of varying opinions but here's my swing on it: If you have the rig that's shown on your Avatar- I'd keep it and spend your cash on places to stay and things to do. It looks like you have some upgrades on your coach and it's a great looking one as well. Unless the floorplan doesn't fit you anymore or you're not happy with it- consider keeping it.

catonine · 02-06-2012, 10:26 AM

I dont have any payments but many do. Recently we were in South Florida and talked to several couples who have the "big boys", the high end coaches. Three or four voluntarily told us that they paid about $2000.00 a month for their coaches. I didnt ask them for this information and I dont know if they were bragging or complaining, but they seemed happy with what they had. I believe that one should get what they want in a coach as long as it is in their price range. If you can afford a payment like that and still be finacially secure enough to enjoy it, go for it. Like the man said, you cant take it with you and whatever you leave behind the children will spend it anyway.

doc · 02-06-2012, 10:27 AM

I like your principles Fin. That is a substantial amount each month however. Good luck on whatever you decide.

BudtheDiplomat · 02-06-2012, 08:48 PM

Finhawk;

Most everyone says, "Buy as much motorhome as you can afford."

I'd say if you are comfortable with $1,500/month, go for it. Mine is a tad more than that, but I'm comfortable with it, and have had thoughts of $3,000+.

People poo-poo depreciation on a new coach, too. I say, "Pffffft." People say that buying used will get a coach that all problems are fixed. I say, what if that's why they are selling!

It is true that you can get more coach for the same money buying a used coach, but you can't get the same length of financing or nearly the same deal. Most new coach dealers will come off >$100grand, more on higher end coaches.

The world is full of nay-sayers. You sound like an honorable man. My rule is don't sweat the small stuff-everything is small.

JadedDancer · 02-06-2012, 09:07 PM

It depends on how long (or short) this loan is. 1500 dollars a month is a LOT in my opinion for an RV that goes down in value the minute you roll it off the lot. But if this is for one year, then yeah, perhaps. If it is a five year loan or longer, good grief no way would I take on a payment that high!

But to each his or her own. But since you asked for opinions, no, I would never buy a MH with payments that high, no matter what my bank account looked like. But I use mine for weekenders and a week vacation twice a year. I am not sure what your plans are for using one, would make a difference.

B Bob · 02-06-2012, 09:16 PM

Interest rates are very low right now and so if you were ever going to finance something this is a good time to do it. The lowest rates are by getting a loan on real estate. Can be in the 3-4% range.

RickO · 02-06-2012, 09:28 PM

Yes, our payment is >$1500/month on a 20 year loan for our 2007 DP purchased new. Yes it's under water. No, I'm not surprised it's under water because it was a financial strategic decision.

Is is worth it? As many have rightly said, only you can answer that question because all of our life situations and values are different.

I'll only add that, with the aid of 20/20 hindsight, if I had it to do over again I would have taken more time and purchased used... but not because I'm surprised that my new rig was under water when I drove it off the lot.

Best of luck.

Rick

Shore2Shore · 02-06-2012, 09:58 PM

With payments like this & financing a motorhome I didn't think it was possible now if you were living in it " full timing " ? Wasn't there a law passed that banks etc wouldn't allow financing to people who were going to live in their rigs??

TAZ · 02-06-2012, 10:03 PM

My payment for the motorhome is very small. No car loans and no credit card debt.

I would not pay over $1,500.

I olny have a house payment and an rv payment. I hate having any payment and have a plan to retire with everything payed off and a large retirement account.

That is my plan... if $1,500 is in your plan, and you are comfortable with it, that is all that matters. Make sure you have enough left over to put fuel in it an to enjoy it. Do what is best for you.

Good luck!

62_inrightlane · 02-06-2012, 10:45 PM

If you get 5% financing on a 20 yr note for $230,000 you can get a monthly payment of about $1517.

Is making payments on a deprecating asset crazy? Well the answer is; It Depends.

The op may have the money invested and may be making more than the interest and principal on the potential loan.

The op may have an annuity that will pay the payments.

The op may not have the cash now but may have it in the next few years. Waiting for the sale of a second home / investment properties, etc.

The OP may want the interest deduction for their taxes since the motorhome qualifies as a home or second home. Combine this with an annuity and they may be money ahead.

Bottom line. If the OP can borrow several hundred thousand dollars for an RV they have demonstrated fiscal responsibility and can do it however they want. They are the only folks that know if financing the purchase and having a $1,500 payment is crazy.

Good luck with your decision.

Dutch Star Don · 02-06-2012, 10:46 PM

Wow......This is the first time that only about 20% of the people said they only pay cash. Usually, it's about 75%, how refreshing....some honesty!. As others said, if you can afford it, go for it.

TAZ · 02-07-2012, 05:24 AM

Quote:

Originally Posted by Diplomat Don

Wow......This is the first time that only about 20% of the people said they only pay cash. Usually, it's about 75%, how refreshing....some honesty!. As others said, if you can afford it, go for it.

We all wish we could pay cash. When i retire my house will be paid off. So it will be sold, we will buy the RV of our choice with cash an be in that 20%.

I don't think may people can pay cash for their rigs these days. Hard time put me back and i am rebuilding. I expect many others have are in the same boat.

I hope everyone makes it into the 20% or has investments making more than their payments. My conservative 401b with matching is performing better than my small payments so i am investing in the future. The OP could be in the same possition.

GaryKD · 02-07-2012, 05:43 AM

Hi Finhawk,
At this time I do not have any individual payments over $1500/month. Having payments for any reason is a way of life choice. There are a couple of ways to manage one's finances. They are mutually exclusive and it remains very difficult to transition from one method to the other(mentally). The two methods are:
1. pay cash for what you buy
2. manage cash flow (borrow when one is able to fit the loan into one's plan).
There is nothing good or bad about either style. Both take discipline and a plan.

The reason I mention this is you may be asking the wrong question. The question may be the way of life a person has chosen and why. The question might be:
1. Do you pay cash for what you buy and why?
or
2. Do you manage cash flow (borrow when appropriate) and why?