How many people are underwater on their motorhome?

[cmlintx]

I’ll bet a lot of people are!! One time I was advised by an RV salesman “Never put money into an RV that you can’t afford to loose!!” Good advice...wish we’d listened. Want to downsize but not sure how...financially. About $35,000 underwater on a class A!! Dealers only will pay you wholesale value...period!! ANYTHING over wholesale is BULL. This info came from another RV salesman. Anytime you’re offered above wholesale for your trade-in is because you are OVER paying for the new one.

I am looking for a trailer that can be towed by a 1/2 ton with an MSRP $35,000 above asking price. Know of any?

Thanks for listening!!

[bradvoorhees]

Not sure how many want to admit being under water , our financial system runs on credit for the most part, we wouldn't be able to enjoy all the toys if it cost us full amount due now to play. I bought a used 50 ft motor yacht just over 12 years ago for 313,000 and sold it last year for 195,000. Fortunately I only owed 145,000 for it so I got a little back. The memories with my wife family and friends are forever and I do miss that boat, er debt...lol.

[GoneToTheDog]

"How many people are underwater on their motorhome?"

Probably many of those who realistically could only marginally afford the RV at the time of purchase, would be my guess.

The next significant downturn in the economy will tell the tale.

[RVThere]

I disagree with GoneToTheDog who surmises that
Probably many of those who realistically could only marginally afford the RV at the time of purchase, would be my guess.

Its actually quite the opposite. Those who are smart enough to use OMP (Other People's Money) will max out the loan (minimize the down payment) on the RV at the lowest interest rate possible and use their own cash in investments that return a higher rate.

So our two RV's were underwater as soon as we pulled off the lot by design. I'm not looking to resell them but if I was I fully realize that I may have to kick in some cash to turn the deal.

If your looking to change RV's every few years, you will be taking a financial hit because of the rapid depreciation.

[GoneToTheDog]

Originally Posted by RVThere

I disagree with GoneToTheDog who surmises that
Probably many of those who realistically could only marginally afford the RV at the time of purchase, would be my guess.

Its actually quite the opposite. Those who are smart enough to use OMP (Other People's Money) will max out the loan (minimize the down payment) on the RV at the lowest interest rate possible and use their own cash in investments that return a higher rate.

So our two RV's were underwater as soon as we pulled off the lot by design. I'm not looking to resell them but if I was I fully realize that I may have to kick in some cash to turn the deal.

If your looking to change RV's every few years, you will be taking a financial hit because of the rapid depreciation.

Under some circumstances....you are exactly correct. So in theory, I agree with your statement, and we have used OPM at times in the past as well. The 'secret to success' is the "use their own cash in investments that return a higher rate" part of the equation. Many are not so disciplined, and spend their cash also.

I think what the OP is talking about....is possibly a situation as like my part time neighbors are in. They are in their 70's. They have a diesel pickup and 35 ft. fifth wheel they seldom use now. Mama constantly screams SELL IT! But....they owe twice what it is worth, and have no cash to make up the difference. Hence....severely underwater.

[Unplanned Tourist]

Paid cash and consider it entertainment. I have to agree with never spending more than you can afford to lose, because if it isn't in the bank, you haven't got it!
Happy Glamping.

[vsheetz]

Originally Posted by Unplanned

Paid cash and consider it entertainment. I have to agree with never spending more than you can afford to lose, because if it isn't in the bank, you haven't got it!
Happy Glamping.

Pretty much our position as well. Paid cash and will drive it till we can't drive it anymore. If its worth anything at that time, that would be nice - but not a requirement.

[baraff]

Debt is slavery.

[Pepper2]

Toy's, and that is what most RV's are, should be cash purchases. Let your investments grow and stay debt free.

[jacwjames]

Our current coach was a repo and we got a heck of a deal. We were actually above water when we bought it and it is still worth close to what we paid +9 years ago. I actually see similar coaches listed for sale for more then we paid, go figure.

Kinda nice to be an outlier in this case.

[NLOVNIT]

Maybe my thinking is wrong, but by my logic, anyone who doesn't pay cash for the whole thing or, if financing, put down more than what the depreciation would be that comes the second you drive off the lot plus get a loan rate at 0% interest (or at least at a rate less than their investments are paying to counter act the interest amount) is upside down. Whether they want to admit it or not, that's most likely the majority of purchases.

Lori-

[TonyMac]

If you bought new and this is a suprise, I think I see the problem. Even used, RVs and other luxury items depreciate at alarming rates. My parents paid $106,000 in 1992 for an very nice DP motorhome that retailed for $125,000 and I sold for them last year for $14,000. Guess how much used diamond jewelry will sell for? You'd be lucky to get .25 on the $.


Baraff, debt is not slavery, far from it, well used debt is opportunity. Like any tool, debt used properly can build civilizations. Used improperly, not much is more devastating.

[nosticks]

Underwater. What would you expect. People take out a 20 year loan on a piece of crap motorhome that won't last half that long. These vehicles are junk to start with and depreciate faster than Venezuelan currency.

[cruzbill]

I don't think this thread serves the OP or is helpful.

glug, blub, blub......