Quote:
Originally Posted by Just BK
I challenge all of you out there to tell me this is not an astute person. Enough said.
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I have not problem on ksg5000's input.
I did do a few things different, but it was a different time economy wise.
We pulled up our retirement rig purchase by about 3 years. The 2007/8 economy drop, had many people in our region (Southern California) needing to get out from under RV's, Boats, Big Trucks, Second Homes, Etc. As many of you know, this caused a swamp of these items on the market. It was for sure, a Buyer's time. We kept the same budget range we'd plan on spending, and got a better coach then we'd expected. What was bad for some, was good for us - because we had lived within our means, and had already planned or the financial cost of buying a retirement rig. We just needed to execute, and took 11-13 months to find a rig that we felt met out needs, and at a price we were willing to pay. (About 6 years old at the time we purchased, not the suggested 10 years of age - but again, a different financial time then now.
I also did not want to pay all cash, as Mr D pointed out, our ROI was higher then the costs of interest to finance. We put 50% down, and I kept the other 50% in our investments. The power of Schedule A assistance on the already low interest rates, as our 2nd Home. The 50% I had in investments, more then tripled the rate of return that we were paying in interest. And while to as much as in previous years, we were paying back in inflation adjusted dollars. I elected to do a 15 year loan, as at that time it provided a better rate of interest.
We're now retired. So different sources of revenue has changed our taxes, so we elected to pay down the loan a bit faster. We'll have it paid of in 10 years at this pace.
To me, that is smart management - almost a leveraging of our money. Using Others People Money has more then paid off for us, this time around.
BUT! Everyone must do what they feel comfortable doing. Many people, my wife too - but she trusts me to mange our finances - do not like being in debt. They'd prefer to pay cash for major purchases, as it helps them sleep at night. My MIL, finally let me help review her financial situation. She was sitting on $250K + in a Bank of America Savings Account, earning peanuts in interest. She was terrified of doing anything wit these funds. It took me, and her Son, another full year. (We did a pretend investment of $200k, and leaving $50K in her savings (She did have other funds, so this was not her full assets.). At the end of a 'pretend year' of investing her funds (Very low risks, with a mix of DRIPS, and Mutual Funds.) - we sat down and showed her what her return would have been - about 8.25%. We then had her look at her year ed statement form BOA, and her total return at that time, came out to just a bit over .8%.) So she now has allowed us to invest this hunk of funds for her.
But both her Son, my wife and I all understood why she had not gone into investing those funds. She was scared of losing it. She was afraid she'd not sleep. And that is why, IMO, everyone and every couple - must do what they feel is right for them. I think we all know people that could pay cash for a niche high end RV - but will not do so, because of their personal choice of lifestyle. I know one gent from, who has several large apartment complexes, and he paid cash for a used Bounder. Which he really enjoys. He could go buy say a Cornerstone or Realm or Marathon, etc. today - with cash. But one of the key reasons he could afford to do this, is because of his choice of lifestyle. He's just not into that. (Well, except for fishing. He has more money in fishing poles and reels, then I do in Scotch!!!).
Like I suspect many here on this CC Owner's section of the board. My wife and I could go out and pay cash for the Realm I keep teasing her about. But you know, we like out coach. We like what we've done to our coach. We use it about 7-8 months of the year. With the rest of the time it's Emergency Disaster Support vehicle
! So we do what we want to do. Keep it maintained well, make modifications that we want along the way. And use it, and love it. And, we're entitled to do what we want.
No right or wrong here, just choices. And everyone can make their own. I do like the info sharing here, as many are not financially aware of how to leverage money. So the info shared in threads like this, could help some one, or couple - approach the purchase of an RV in a different way then they normally would. That is what the power of friendly Boards, with wide range of members, like IRV2 is - is all about. Everyone info sharing, and helping.
My advice has always been:
>Pick a budget range
>Include a line item for Baseline Maintenance catchup, and minor modifications, to make it your coach
>Create a list of Must Have's, and Nice to Have's. Based upon what both of you like after looking over many, many coaches. (Interior layout, number of slides, tag vs non tag, gas vs diesel, side radiator vs rear, hydro/aqua hot vs water heater, number of AC's, size of engine, size of tanks, air leveling vs leg leveling (or both), color choices, CCC, length, age, etc., etc.
>Based upon that list, come up with a short list of Manufacturers, Models and years. Then go shopping.
>IMO, drop years to remain within budget - and buy the highest quality coach that you can.
(Again IMO, a 5-8 year old higher quality coach, after another 5-10 years of usage. Will be in better overall condition, then say a 1-2 year old RV at the same price point. Quality lasts. And higher end coaches, usually come with superior chassis and better build and better components and better materials - and those all become a good foundation to move on down the road with a grin on your race, for 5-10 years of usage.)
But again. The person writing the check decide what is important to them. I do know people that prefer to buy lower quality coaches new, to stay within budget range - because they do not want a used coach. And for sure, that is their right to do
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Rambling's by Smitty over, again, for now
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Best to all,
Smitty
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