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Old 12-16-2014, 10:09 AM   #15
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Sure happy to get lots of interesting responses during these rainy days.

RV Loans aren't crazy, in fact not many new RVs would be sold without them, but they really screw up a lot of people and they don't make for good financial decisions most of the time for these entertainment assets = overbuying.

Buying for cash puts a pretty good reality check on it and makes for better financial decisions = buying used to avoid the ridiculous depreciation.

That said, you gots it you spends it, your dime. You got $20 mill cash, no problem, spend $1mil on an rv, is nothing.

Calling it a business cost is weird, as if most of the rvs were sold for buyer's business purposes.Any asset can be turned into a business asset, so what? An irrelevant insert.

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Old 12-16-2014, 10:16 AM   #16
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Country Coach Owners Club
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Location: Sacramento Area
Posts: 3,228
None of my houses have depreciated 10% per year from the purchase price beginning the moment I move into the house..

All of my Recreational Vehicles have depreciated rapidly. More in early years. Less in later years.

If using a long term mortgage on the RV be sure have a cash reserve that allows you to pay off the difference between market value and debt when you want to stop the ownership.

Market value will likely be lower than your mortgage note.

My rig is 20 years old and is now worth about 6% of MSRP according to NADA.

My house is now 17 years old and worth about 180% of my purchase price according to Zillow.

The value of RV's continue to erode just like an automobile.

1995 CC Magna #5280
C8.3L 300hp Cummins, 31,000lbs
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Old 12-16-2014, 10:22 AM   #17
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"I think what he is saying is that if he is paying 4% interest on his loan, and his other investments are yielding 14%, then it makes sense to put less down on the MH and keep the money in his other investments."

No that is not ONLY what he said, you are being too selective or don't understand the rest of what he said or didn't bother to read all of what he said.

You can't say something is white, then say it is black. If you argue for putting down anything more than the minimum required, your investment arguments fall apart as do they if your return is not guaranteed.
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Old 12-16-2014, 10:42 AM   #18
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We chose to finance our 2006 MH for two reasons.

1. Our retirement investments were drawing more interest than the new loan would cost.

2. The interest we pay for the new loan is supposed to be tax deductible as a 2nd home. (we'll see when we file 2014 taxes)

If we paid cash we would have taken a hit on the loss of interest and we would have to pay additional taxes on money drawn from 401k.
Larry and Prissy Sharp
2006 Allegro Bay 37DB
2012 Toyota Yaris
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Old 12-16-2014, 05:22 PM   #19
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I know it's crazy, but I always strive to have more money in the bank(and or investments) than I do in outstanding loans. I like the independence of knowing that if something ever happens to my pension or my health, everything can be paid off and I or my wife will not have any pressure to sell things at a reduced profit/loss because we have to to keep our heads above water or the bank is going to take it.

With that being said, we lived our lives within our budgets, saved money, helped put our kids thru college, get house ect, saved wisely,and invested well with my above comments in mind. We have the peace of mind, financed part of our MH even though we didn't need to, and kept the money in our investments. RodgerS suggests if you finance then you are going to go way over your budget. That is not true if one chooses to live within their means, just because we qualified for a $700,000 MH doesn't mean we bought one. If we went "over budget" we would have just put additional money down so we felt within budget as to how we believe is best for our future financial plans. Everyone is different and knows what is best for them, we can enjoy our retirement lifestyle today because of the sacrafices we made throughout our working years.
Mike & Charlotte
2014 Newmar Canyon Star 3610
Orange County, California
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Old 12-19-2014, 06:59 PM   #20
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Sometimes it depends on what stage of life a person is at. When we bought our first MH we were both working. We bought new and financed it. After 6 wonderful years we decided we wanted something slightly larger. We paid off our Class B, sold it, and used the proceeds and some savings to buy a larger class C. After a couple of years we knew we wanted to move up again but weren't sure if a Class A would really suit us. Also, we're both retired now and we didn't want to have a loan to worry about. So we sold our Class C for very close to what we paid for it, and bought an older, high quality Class A with the Class C sale proceeds, and used the leftover proceeds to fund the inevitable replacements of tires, batteries, and for servicing, etc. It wouldn't be everyone's choice but it has worked for us.
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Old 12-19-2014, 08:02 PM   #21
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"Calling it a business cost is weird, as if most of the rvs were sold for buyer's business purposes.Any asset can be turned into a business asset, so what? An irrelevant insert."

No, it is not weird. Read what he said. He is still working as a traveling agent so he can deduct at least a large part of the motor home costs as part of his travel expenses. Most of us cannot do that as we are not working or if we are we cannot use the MH as part of our job.
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Old 01-02-2015, 12:09 PM   #22
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Well I am going to throw a curve ball at this thread. We are at the most expensive point in family life. 3 kids at home, the oldest in high school. We have our own business and an RV made most sense for trying to get away. We financed a new unit and we love it. The payments are huge and money can be tight at times......but it won't be long before the kids are away. So it's worth every penny!

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